ICANBusiness, Management and FinanceHuman Resource Management2023

A Nigerian company with 500 employees intends to retrench 60 workers due to business downturn. Under the Labour Act Cap L1 LFN 2004, which of the following procedural requirements is MANDATORY before the retrenchment takes effect?

AObtaining prior written approval from the Federal High Court
BNotifying the nearest office of the Ministry of Labour and Employment and the workers' trade unionCORRECT
CPaying each affected worker a minimum of six months' salary as severance compensation
DAdvertising the retrenchment in at least two national newspapers for public awareness
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Section 20 of the Labour Act Cap L1 LFN 2004 requires an employer intending to carry out retrenchment to notify the nearest office of the Ministry of Labour and Employment and, where applicable, the recognised trade union. This notification enables regulatory oversight and facilitates negotiation of severance terms. There is no statutory requirement for court approval, a specific minimum of six months' pay, or newspaper advertisement, although industry practice and collective agreements may impose additional obligations.
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