It was indeed fulfilling to have hosted over 80 entrepreneurs, business managers and HR experts during our Legal Awareness Webinar series for the month of July focused on Understanding the Legal Rights and Obligations of an Employer. Among other things, the session enunciated some issues such as:
- Written particulars of terms of employment
- Right to medical examination
- Rights under the Pension Act
- Group Life Insurance among other things.
Here is just to emphasize other issues an employer must consider, they include:
- Non-Disclosure Agreement (NDA): An employer may ask an employee to sign a non-disclosure agreement to protect the business where such an employee knows more about the business or establishment and his disclosure of such information may be detrimental to the business. The employee shall treat all information provided by the company as confidential information and shall not disclose it to any third party without prior written consent of the company. This can continue even after the employee has left the employment of the employer; meaning that that the employer may extend the duration of the NDA beyond the period of his or her employment.
- Intellectual Property Protection: The company enjoys control over the work created by the employee and the employee is bound to obey the directions of his employer. The ownership of the intellectual property created by the employee rests with the company. However, in cases where an invention is created by the employee during the course of his employment, such ownership rests solely with the employee. In order to claim ownership or share profit over such intellectual property, a separate inventions assignment agreement can be entered into or a clause regarding the same can be incorporated in the terms and conditions of the employment.
- Dispute resolution: Though this is not compulsory, it is advisable. This clause will mention the mechanism for resolution of any disputes arising between the employee and the employer arising out of/in connection with or in relation to the employment. A list of mediators and arbitrators can be annexed at the end of the agreement in order to save precious time which might be lost if the parties do not mutually agree to the appointment of a mediator/arbitrator. This will become a condition precedent to be fulfilled before recourse to court where there is dispute between the parties.
- Probation period: The employer may decide to place the employee on a probation period/duration. Under the Labour Act, an employee is expected to get his letter of appointment not later than three (3) months. Post the probation period, the employee shall be given a confirmation letter.
- Non-compete and Non-solicit: Though this is optional, it is strongly advised to be part of the terms and conditions of the contact of service/employment. This clause seeks to preclude the employee from carrying on or attempting to carry on any activities or render services similar to that of the business of the company with any third party including but not limited to the competitors of the company. Also, the employee shall not solicit the clients/customer of the company to itself or any third party.
These are essential issues for employers to manage their relationship with their employees as well as protect their business secrets.
The article was written by Barr. Solape Adesuyi and Barr. Ese-Freedom Okokhuele of Solape Adesuyi and Associate.
Contact: Tel 09048890063