Why more Nigerian workers refuse the “resign or be terminated” offer, what the National Industrial Court has actually decided, where the law is unsettled, and how recruiters and HR teams should handle exits and the candidates who go through them.

Last updated: 5 November 2026

The Short Answer

Some Nigerian employees now refuse to resign when told to “resign or be terminated” because a forced resignation can be challenged as constructive dismissal at the National Industrial Court of Nigeria (NICN), a formal termination triggers the employer’s duty to give notice or pay in lieu, and a termination letter creates a record. But refusing to resign is not a guaranteed payout. The Supreme Court has said employers can terminate without giving a reason if notice or pay in lieu is honoured, damages are often modest, cases can take years, and pension access is the same either way. For recruiters and HR teams, the lesson is to run exits properly and to evaluate candidates with a termination in their history fairly.

Key facts at a glance (as of November 2026):

  • Statutory notice under the Labour Act is one day for up to three months of service, one week for up to two years, two weeks for up to five years and one month for five years or more.
  • The Labour Act covers “workers”, and it excludes people exercising administrative, executive, technical or professional functions, who are governed mainly by their contracts.
  • In April 2026, the NICN found that a bank’s backdated “advice to resign” letter amounted to constructive dismissal and awarded about ₦9.1 million in total. The case was filed in November 2020.
  • In an earlier forced-resignation case, the NICN awarded ₦1 million in exemplary damages and rejected a claim for 22 years of salary.
  • Under the Pension Reform Act 2014, people who resign or are disengaged before age 50 can access 25 percent of their retirement savings after four months without a job.

We found no Nigerian dataset that counts how many employees refuse to resign. What follows draws on statutes, court decisions, law firm analysis and news reports, and the recommendations are our suggestions. This article is general information, not legal advice.

What Resignation and Termination Mean Under Nigerian Law

Resignation is a voluntary act by the employee. Termination is initiated by the employer. Section 11 of the Labour Act lets either party end a contract by giving notice, and it allows payment in lieu of notice. Notice of a week or more must be in writing.

Two points matter for recruiters and HR teams:

  • Notice periods under the Act: one day for three months of service or less, one week for more than three months but under two years, two weeks for two to under five years, and one month for five years or more, according to Section 11.
  • The Act does not cover everyone. Section 91 excludes people exercising administrative, executive, technical or professional functions, so senior and professional staff are governed mainly by their contracts, as explained by KPMG Nigeria. That makes your contract wording the most important document in many exits.

Why Some Employees Refuse to Resign

1. A Termination Triggers Notice, Pay and Process

When an employer terminates, it must follow the contract and the notice rules or pay in lieu. Resignation, by contrast, usually leaves the employee with accrued pay and leave and whatever the contract or handbook gives.

There is no general statutory severance for ordinary termination. Redundancy is different. Section 20 of the Labour Act requires an employer to inform the trade union or workers’ representatives of the reasons and extent of redundancy and to use best endeavours to negotiate redundancy payments. Beyond that, severance is a matter for contracts, handbooks and collective agreements.

2. A Forced Resignation Can Be Challenged as Constructive Dismissal

Nigerian courts treat a resignation extracted by pressure as constructive dismissal. An academic study in the Nigerian Bar Association journal found that the NICN has declared forced resignation, especially by banks, to be wrongful constructive dismissal that entitles the employee to damages.

Two cases show the pattern and the limits:

  • Adewunmi v Atlas Copco Nigeria Limited (NICN, 16 July 2021). The employee said he was told to resign or face termination, with a same-day decision, in a meeting with several managers. The court agreed it was a forced resignation. It still rejected his claim for 22 years of salary and awarded ₦1 million in exemplary damages and ₦300,000 in costs, according to a G. Elias analysis.
  • Okereke v UBA Plc (NICN, 29 April 2026). A branch manager resisted advice to resign and asked for formal termination. The court found that the bank had backdated an “advice to resign” letter and reversed benefits already credited, and held that the resignation was not voluntary. It awarded ₦5 million in general damages plus salary in lieu of notice, unused leave and other sums, about ₦9.1 million in total, but declined ex gratia claims. The judgment is published by the NICN.

A law firm analysis from June 2026 sets out the liability and risk management issues in constructive dismissal claims for employers.

3. A Termination Letter Creates a Record

A formal termination letter documents the end date, the reason and the benefits calculation. A resignation under pressure can leave a thinner paper trail, which is why courts look closely at the circumstances around resignation letters. In Asana v First Bank, commentary by Perchstone & Graeys noted that a claim for constructive dismissal depends on the employee having resigned soon after the employer’s act, and that a staff loan obligation can survive the end of the job.

4. Some Employees Have Extra Protection Against Dismissal

Courts have taken a strong line on dismissal linked to pregnancy and maternity. In Nwankwo v Olloh (NICN, 15 December 2022), the court found that ending a claimant’s employment during maternity leave was unlawful and discriminatory and awarded three years’ gross salary as general damages. An employee who signs a resignation letter can find it much harder to bring that kind of claim.

5. Being Let Go Carries Less Stigma Than Before

Restructuring has become common. TechCabal reported that more than 100 staff of Unity Bank received termination letters on 1 January 2026 after the Providus Bank merger, according to the banking workers union, and organised labour has warned of wider job losses from bank and insurance recapitalisation. In the US, recruiters quoted by Business Insider said candidates who were laid off are not disqualified from consideration. We found no Nigerian survey on recruiter attitudes.

What the Law Does Not Guarantee

Several popular claims about refusing to resign are overstated.

  • Employers do not always have to give a reason. In Dangote Cement Plc v Ager (Supreme Court, 8 March 2024), the court held that an employer may terminate without stating a reason if the required notice or pay in lieu is given. The NICN has often leaned the other way, relying on international best practices, so the position is unsettled, as analysed in Chambers’ 2026 review and by Afriwise.
  • Damages are often modest. The usual measure for wrongful termination is the notice-period pay. Larger awards happen in special cases, such as breach of fair hearing, discrimination or stigmatisation. For example, the NICN awarded two years’ salary in a 2024 case involving fair hearing and stigmatisation, and the Supreme Court in Skye Bank v Adegun (27 February 2024) allowed two years’ salary in a case where a special case was made.
  • Pension access is the same. Under the Pension Reform Act 2014, a person who voluntarily retires, resigns or is disengaged before age 50 and cannot find another job within four months can access 25 percent of their retirement savings. PenCom approved ₦23.47 billion to 14,179 such contributors in the first half of 2024.
  • Cases take years. The UBA case was filed in November 2020 and decided in April 2026, and the Atlas Copco case was decided two years after it was filed.
  • Benefits depend on contracts. In the UBA case, the court declined ex gratia payments because they were not contractually guaranteed.

What This Means for Recruiters and HR Teams

The risk sits with the employer. Our suggestions for handling exits:

  • Never spring “resign or be terminated” on someone in a single meeting. The Atlas Copco court focused on a meeting with several managers and a same-day decision.
  • Do not backdate documents. The UBA court treated the backdated “advice to resign” letter as a key fact.
  • Choose a clean route. Either terminate properly, with notice or pay in lieu, a clear letter and correct benefits, or negotiate a voluntary separation agreement that is genuinely voluntary, with time to review it and a chance to take advice.
  • Follow redundancy steps. Tell the union or workers’ representatives, explain the reasons, and try in good faith to negotiate payments.
  • Fix your contracts. State notice periods, termination grounds and what benefits depend on resignation or termination. Remember that senior staff are governed mainly by their contracts.
  • Document performance issues early. Written feedback and fair hearing matter if you later dismiss for cause.
  • Do not disguise terminations as resignations in your records. Accurate records protect you and help fair references.
  • Handle loans and deductions carefully. In the UBA case, the court held that the bank should have invoked loan insurance before making deductions.
  • Keep references factual. Nigerian commentary suggests an employer owes a duty of care to avoid negligent misstatement, and recommends basing references on performance appraisals the employee has countersigned. Whether a reference is legally required is debated, so take advice.

For the employee-side view of leaving well, see our guide to professional resignation and how to request a job reference.

How Recruiters Should Evaluate Candidates With a Termination or Forced Exit

With restructuring common, a termination on a CV is not a performance verdict. Our suggestions:

  • Ask a neutral question. “What happened, what changed and what did you take from it?” works better than “were you fired?”
  • Do not assume layoffs mean low performance, or that all layoffs are neutral. Business Insider notes that some layoffs target low performers, and a recruiting column suggests asking why a candidate left rather than assuming it was a layoff, since some terminations are branded as layoffs.
  • Verify with documents and references. Ask for the termination or redundancy letter and check dates and roles. See what recruiters check first in what do recruiters look for in a CV.
  • Look at tenure, impact and trajectory. Judge the work, not the label.
  • Be careful with candidates who are in a dispute. A claim against a former employer is not by itself a signal about job performance. Base decisions on job-related evidence and get advice if unsure.
  • Read titles and exit stories together. Our look at job titles that sound impressive but mean little can help you test claims.
  • Prepare candidates. Share the top 10 mistakes people make during interviews if they ask for guidance.

What to Tell Candidates Who Ask

These are general suggestions, not legal advice:

  • Do not sign a resignation letter or settlement on the spot. Ask for time to read it and take advice.
  • Keep copies of emails, meeting notes and performance records.
  • Read the contract and handbook for notice, termination and benefits terms.
  • Keep doing the job well. Poor performance after a dispute gives an employer a legitimate reason.
  • Understand the trade-offs. Refusing to resign can preserve claims, but it is not a guaranteed payout, and cases can take years.
  • Line up job options quietly. Employers often prefer candidates who are in work or recently exited.

When Resigning Is Still the Smarter Move

  • You have a signed offer and need a clean, immediate exit.
  • Your contract genuinely ties valuable benefits to voluntary resignation.
  • You work in a small, relationship-driven industry where goodwill matters more than a claim.
  • Your health is suffering and you need to leave now.

Frequently Asked Questions

Is it better to resign or be fired in Nigeria? It depends on your contract, finances and the reasons for the exit. A forced resignation can be challenged as constructive dismissal, but awards are often modest and cases can take years. Resigning can be wiser if you have a new job lined up.

Can an employer force an employee to resign in Nigeria? Employers cannot lawfully coerce resignation. Courts, including the NICN in 2021 and 2026 cases, have treated forced resignation as constructive dismissal, which can lead to damages.

Do Nigerian employers have to give a reason for termination? Not always. The Supreme Court held in 2024 that an employer can terminate without a stated reason if notice or pay in lieu is given, although the NICN often favours giving reasons. The position is unsettled.

What notice period applies in Nigeria? Under the Labour Act, one day, one week, two weeks or one month depending on length of service, for workers covered by the Act. Contracts can be more generous, and senior staff are governed mainly by their contracts.

Can I access my pension if I resign or am fired? If you are under 50 and do not find another job within four months of resigning or being disengaged, you can apply to withdraw 25 percent of your retirement savings account, subject to PenCom rules.

How much compensation can I expect for wrongful or constructive dismissal? It varies. Some NICN awards have been ₦1 million or a few million naira, while others reached two or three years’ salary in cases involving discrimination or breach of fair hearing.

Will being fired hurt my chances of getting hired? Not necessarily. Many recruiters focus on the explanation and the evidence of your work, especially where restructuring is common.

Should recruiters reject candidates who were terminated? No. Evaluate the reason for the exit, verify it, and judge the candidate on job-related evidence.

The Bottom Line

The “resign or be terminated” meeting has become riskier for employers and more carefully handled by employees. The law is not as simple as popular advice suggests: the Supreme Court allows termination without reasons if notice is honoured, damages are often modest, and cases take years. But forced resignations, backdated letters and rushed meetings do create real exposure. Recruiters and HR teams should run exits cleanly, keep honest records and evaluate candidates fairly, because a termination on a CV tells you less than the story and the evidence behind it. For more on recruiting and hiring practice, see our Recruiter Advice section.

This article draws on the Labour Act (as published by Jurist.ng), KPMG Nigeria, Mondaq, Legal 500 (G. Elias), City Lawyer Magazine, the National Industrial Court of Nigeria, Chambers, Afriwise, ThisDay, The Guardian Nigeria, the Nigerian Bar Association journal (via AJOL), Perchstone & Graeys, DNL Legal & Style, TheCable, BusinessDay, TechCabal, Leadership, Legalnaija, Business Insider and SecurityInfoWatch, current as of November 2026. Court decisions cited are as reported by law firms and the press and may be appealed or distinguished. Several cases are unreported NICN judgments summarised by commentators. Business Insider and SecurityInfoWatch are US sources and are used only to illustrate recruiter practice. We found no Nigerian dataset on how often employees refuse to resign or on recruiter attitudes towards terminated candidates, so the explanations and recommendations are our synthesis. This article is general information, not legal advice. Consult an employment lawyer about a specific situation.