The immediate past president of the Chartered Institute of Personnel Management of Nigeria (CIPM), Olusegun Mojeed, has warned employers against using labour outsourcing to replace permanent employees with casual workers, insisting that workforce flexibility must not become a means of promoting unfair labour practices.

Mojeed said some companies laid off full-time employees only to re-engage them as casual workers through labour contractors, often without the benefits attached to permanent employment.

He stated this while delivering a presentation on strengthening professional standards and managing labour outsourcing and workforce flexibility at the 12th yearly national workshop of the Employment Agencies of Nigeria (EAPEAN) in Lagos.

Mojeed said that although outsourcing was a global trend, Nigeria often misunderstood and misused it, particularly when employers outsourced permanent positions and kept workers at the same desks under different employment arrangements.

He identified outsourcing core, permanent roles; denying employment benefits; and repeatedly moving casual workers between clients as examples of abusive workforce flexibility.

According to him, legitimate flexibility should accommodate seasonal workload increases, project-based employment, non-core support functions, and specialised skills, rather than cover casualisation.

Mojeed identified banking, telecommunications, and oil and gas as sectors facing concerns over outsourcing practices, warning that poorly managed arrangements could expose businesses to legal and reputational risks while undermining workers’ morale, safety and productivity.

He also noted that the Nigeria Labour Congress had pushed to criminalise outsourcing in core areas, with proposals referencing Sections 8 and 9 of the Labour Act.

On protecting outsourced workers, Mojeed advocated harmonised working conditions, including access to canteens, personal protective equipment, safety training and proportionate benefits.

He said employment agencies and client companies should have clearly defined responsibilities, with agencies accountable for employment-related obligations such as payment and discipline.

In contrast, client companies oversee day-to-day work and workplace safety.
Mojeed also recommended regular compliance audits that assess workers’ conditions rather than merely count outsourced employees.

Citing the International Labour Organisation’s Convention 181, he said private employment agencies should operate within appropriate licensing and accreditation frameworks and protect workers from recruitment fees, discrimination, forced labour and other abuses.

He added that workers’ fundamental rights, including freedom of association, collective bargaining, fair wages, social security and workplace safety, must be protected.

Mojeed called for stronger collaboration among government, employers, private employment agencies and organised labour to improve oversight and enforce professional standards in the industry.

He also advocated self-regulation through ethical codes, peer audits, shared databases of compliant and fraudulent agencies, staff training and anonymous whistleblowing channels.

Mojeed said the future of private employment services in Nigeria should focus on professional, ethical workforce solutions that protect workers and improve business productivity, rather than using outsourcing solely to cut costs.

In his remarks, EAPEAN President NzeribeOkegbue said rising operating costs and economic pressures are challenging private employment agencies’ ability to sustain their businesses without compromising workers’ welfare, fair recruitment and decent work.

He called for clearer labour regulations, transparent licensing processes, and stronger enforcement against unlicensed operators, warning that overlapping regulatory demands, delayed contract payments, and rising compliance costs were making it difficult for employment-service providers.