Remote Work Contracts: Protecting Employers and Employees

Remote and hybrid work raise questions that ordinary office contracts were never written to answer. A clear contract protects both the employer and the employee.

What a remote work contract should cover

1. Place of work

Say where the employee may work from. This matters for tax, data security and insurance. Working from another country for long periods can create tax obligations there.

2. Working hours and availability

Set the core hours when the employee must be reachable, how availability is shown, and how any overtime is handled.

3. Equipment and expenses

State who provides the laptop and phone, who pays for internet and power, and what must be returned when employment ends.

4. Data protection and confidentiality

Remote staff handle company and customer data outside the office. The Nigeria Data Protection Act 2023 and the Nigeria Data Protection Commission's General Application and Implementation Directive 2025 apply to that data, including employee data. The contract and a written policy should cover secure devices, passwords, reporting of data breaches, and what may be stored at home.

5. Performance

Measure output rather than hours where possible, and say how performance will be reviewed.

6. Safety and injury

An employer's liability for injury in the course of work comes mainly from the Employee's Compensation Act 2010. Set out simple expectations for a safe home workspace and how work injuries should be reported.

Tax for remote workers

Since 1 January 2026, the Nigeria Tax Act 2025 taxes Nigerian residents on their worldwide income. Residence depends on things like where the person has a permanent home or habitual abode, and whether they are in Nigeria for 183 days or more in a 12 month period. Employers should run PAYE correctly for staff resident in Nigeria, including those paid in foreign currency.

Points employers often get wrong

• Which law protects the employee. The Labour Act mainly covers manual and clerical workers. Managers and professionals rely largely on their contracts, so the contract must be complete.
• Ending employment. Nigeria has no separate unfair dismissal statute, but the National Industrial Court applies international labour standards and expects employers to have a valid reason for dismissal.
• Choice of court. Employment disputes about work done in Nigeria go to the National Industrial Court, which has exclusive jurisdiction under the Constitution. A contract cannot take that away.
• Using an old office contract with a one line "remote work" addendum.

Getting it right

Review existing contracts and policies for remote and hybrid staff, especially if you have people working from outside Nigeria.