An Examination of Employment Law Compliance Among Small and Medium Enterprises in Kano State

Small and medium enterprises in Kano State, North West Nigeria, constitute a significant share of the formal and informal employment base, yet their compliance with labour laws including the Labour Act, Employees Compensation Act, and minimum wage legislation is poorly documented. This study examines the state of employment law compliance among 80 registered SMEs in Kano Municipal and Fagge Local Government Areas through structured questionnaires administered to business owners and employees. The study assesses compliance across seven dimensions: employment contracts, minimum wage, working hours, leave entitlements, health and safety, pension contributions, and employees compensation insurance. Descriptive statistics were used for data analysis. Results indicate that only 29 percent of surveyed SMEs had written employment contracts for all staff. Minimum wage compliance was recorded in 44 percent of enterprises. Pension remittance compliance under the Contributory Pension Scheme was the weakest area, with only 18 percent of SMEs making regular contributions. Awareness of the Employees Compensation Act was negligible among 74 percent of respondents. The study concludes that employment law non-compliance in Kano State SMEs is systemic and reflects a combination of low legal awareness, enforcement gaps, and economic constraints on smaller employers. Recommendations include simplified compliance guides in Hausa, targeted inspection campaigns by the Kano State Ministry of Labour, and mandatory SME labour law orientation as a condition of business registration.

Keywords: employment law, SME compliance, Labour Act, Kano State, pension contributions