Conditions to sack or release a staff/ worker in Nigerian Oil and Gas

The conditions to release or sack staff in the Nigerian oil and gas Industry. This post contain the Employer and Employees guideline, rights, the does and don’ts. The ministry in charge of Oil and Gas business in Nigeria made it clear the conditions an employer will meet to Sack/ Release staff in Nigerian Oil and Gas industry.

The purpose of these Guidelines is to establish the procedure for obtaining the approval of the Minister of Petroleum Resources through the Department of Petroleum Resources (DPR), for the release or sack of any Worker employed by the holder of an oil mining lease, licence or permit under the Petroleum Act or under
Regulations made thereunder or any person registered to provide any services in relation thereto.

Note: Duties of DPR among other is issuing of DPR Permits, Licences, Regulation etc in Nigerian Oil & Gas industry.

 

Read: How to Obtain DPR Permits & Licenses

 

DEFINITION OF TERMS

Conditions of Service means any document by whatever name which governs the relationship between the Employer and the Worker. Such documents include Collective Bargaining Agreements, Letters of Employment, Conditions of Service, Employee handbooks, Corporate Policy and Procedure Guides etc

Director: means the Director of Petroleum Resources.
DPR: means Department of Petroleum Resources
Employer: means any organisation, company, partnership, or registered business name which holds an oil mining lease, licence or permit (or an interest therein) issued under the Petroleum Act or under Regulations made thereunder or any person registered to provide any services in relation thereto.
Minister: means the Minister of Petroleum Resources.
Worker: means any Nigerian national who is employed by the holder of an oil prospecting licence, oil mining lease, or any other licence or a permit issued under the Petroleum Act or under Regulations made thereunder.

What Constitutes Staff Sack/ Release

Staff Release means the removal of a Worker in a manner that permanently separates the said Worker from the Employer. Instances of staff release shall include the following:
i. Dismissal
ii. Retirement
iii. Termination
iv. Redundancy
v. Release on medical grounds
vi. Resignation
vii. Death
viii. Abandonment of Duty Post.

Procedure For Staff Sack/ Release

  1. Any Employer who wishes to release a Worker shall apply in writing to the Director for the Minister’s approval stating the manner of staff release, the reasons for the proposed release, the compensation due to the Worker, and any proposed replacement for the Worker. The application shall contain a copy of any document relevant to the Worker’s employment including the Employer’s
    Conditions of Service as defined under these Guidelines.
  2. Where the Employer fails to submit any required information to the DPR, such application for staff release shall not be eligible for the Minister’s approval.
  3. An Employer shall only be required to notify the Minister through the DPR where the Worker’s release occurs by way of:
    i Voluntary Retirement.
    ii Resignation.
    iii Death.
    iv Abandonment of Duty Post.
  4. Where the Worker’s release is by involuntary retirement, dismissal, termination, redundancy or on medical grounds, the DPR shall conduct an inquiry into the circumstances of the proposed staff release and make a decision on whether to convey the Minister’s approval or otherwise. To this extent the Employer shall not advertise, publish or make a press release in respect of the
    release of the Worker prior to the DPR’s decision as such an advertisement, publication or press release may prejudice the outcome of the inquiry.
  5. The DPR’s decision shall be implemented no later than ten days after it is received by the Employer.

 

Read: NipeX Registration & Requirements

 

Duty to Provide Information

Every Employer shall submit to the Director the following information, in a manner prescribed by the Department, on or before the 31st of March of every year:

i Name and designation of all its Workers.
ii The number of Workers employed during the period ending 31st March.
iii The number of Workers released prior to the period ending 31st March.

Breach of Guidelines

As provided in Regulation 60B of the Petroleum (Drilling and Production) (Amendment) Regulations 2019 any person who fails to comply with these Guidelines is liable to a penalty issued by the Director of Petroleum Resources not exceeding Two Hundred and Fifty Thousand United States Dollars (USD $250,000.00), and in addition any permit, licence or lease granted to that person
may be withdrawn or cancelled by the Director of Petroleum Resources.

CITATION
These Guidelines shall be cited as the Guidelines for the Release of Staff in the Nigerian Oil and Gas Industry 2019.

REPEAL

The Guidelines No 1 of 2015 for the Release of Staff in the Nigerian Oil and Gas Industry are hereby repealed and replaced with these Guidelines.

Source is from DPR