Background of the Study
Employment protection legislation (EPL) encompasses laws and regulations that govern the rights of employees and the obligations of employers, with the aim of ensuring job security and fair treatment in the workplace. In Nigeria, EPL has been a subject of considerable debate as policymakers balance the need for protecting workers against the potential impact on labor market flexibility and competitiveness. Recent reforms between 2023 and 2025 have sought to strengthen job security through measures such as restrictions on arbitrary dismissal, enhanced severance benefits, and improved dispute resolution mechanisms (Adeyemi, 2023). These measures are intended to foster a stable labor market environment, reduce employment volatility, and enhance worker confidence. However, critics argue that overly stringent EPL can lead to reduced hiring, increased labor market rigidity, and unintended consequences for firms, particularly in a dynamic economic context like Nigeria’s (Okoro, 2024).
The effectiveness of EPL in ensuring job security in Nigeria is influenced by several factors, including the robustness of enforcement mechanisms, the flexibility of labor market institutions, and the overall economic climate. Empirical studies suggest that while EPL can reduce job insecurity and protect vulnerable workers, it may also have the unintended effect of discouraging investment and hiring in certain sectors. This duality underscores the need for a balanced approach that protects workers while allowing for necessary labor market adjustments. This study aims to evaluate the impact of employment protection legislation on job security in Nigeria by analyzing labor market data, reviewing case studies of industrial disputes, and gathering perspectives from both employers and employees. The goal is to provide a nuanced understanding of EPL’s role in shaping job security and to recommend policy adjustments that promote both protection and flexibility (Adeyemi, 2023).
Statement of the Problem
Despite the intention of employment protection legislation to enhance job security, many Nigerian workers continue to experience insecurity due to inconsistent application and enforcement of these laws. The primary problem is that while EPL is designed to safeguard workers from unfair dismissal and exploitative practices, its implementation is often hindered by administrative inefficiencies, limited judicial capacity, and a lack of awareness among employees (Okoro, 2024). Furthermore, the rigid nature of some EPL provisions may discourage employers from hiring, leading to a reduction in job opportunities, especially for young and low-skilled workers. This regulatory rigidity can result in a labor market that is less dynamic and responsive to economic fluctuations, thereby exacerbating unemployment and underemployment. The study seeks to address these challenges by investigating how effectively EPL enhances job security in Nigeria and by identifying areas where legislative and enforcement improvements are needed.
Objectives of the Study
To evaluate the impact of employment protection legislation on job security in Nigeria.
To identify the challenges in the enforcement and implementation of EPL.
To propose policy recommendations that balance worker protection with labor market flexibility.
Research Questions
How does employment protection legislation affect job security in Nigeria?
What are the main challenges in enforcing EPL in the Nigerian context?
What policy measures can enhance the effectiveness of EPL without compromising labor market dynamism?
Research Hypotheses
H₁: Stronger employment protection legislation is positively correlated with increased job security.
H₂: Administrative and enforcement challenges significantly weaken the intended benefits of EPL.
H₃: Policy reforms that balance protection with flexibility can improve overall labor market outcomes.
Scope and Limitations of the Study
This study focuses on Nigeria’s employment protection legislation and its effects on job security from 2010 to 2025, using labor market data, legal records, and stakeholder interviews. Limitations include difficulties in measuring informal enforcement and potential biases in self-reported job security data.
Definitions of Terms
Employment Protection Legislation (EPL): Laws designed to secure workers’ rights and protect them from arbitrary dismissal.
Job Security: The assurance of continued employment and protection against sudden job loss.
Labor Market Flexibility: The ability of the labor market to adjust to changes in economic conditions.
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