April 2020 Newsletter – Covid-19 and Employment Contracts

INTRODUCTION

Following the global spread of the coronavirus (“covid-19”or the “disease”), the World Health Organisation declared covid-19 a pandemic, and nations of the world are already taking reactive and proactive measures to curtail the spread of the disease in their countries. In Nigeria, government response aimed at curtailing the spread of the disease has led to the significant restrictions in the movement of persons and goods virtually all over the country, especially in the places (namely Lagos state, Ogun state, and the Federal Capital Territory) which Nigeria’s president has put on technical lockdown. Many offices have been shut and, or as, their employees are unable to come to the office or attend their usual places of work. Although some businesses have remained virtually open, as their employees continue to work from home, the volume of business conducted remotely has continued to decline. Even in cases in which employees are available to work from home, employers are no longer in a position to provide enough work to keep the employees fully engaged. It is also true that it is not every type of work that may be performed effectively on-line. The corresponding adverse pressure on business revenues will mean that businesses may not be able to sustain current payroll costs. Employers will therefore sooner than later have to take decisions on how to manage this challenge.

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