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LAGOS – The National Industrial Court has declared that Mikano International impliedly confirmed the appointment of Mr. Oluwaseun after retaining him for six months beyond his probationary period without formally confirming, extending or terminating his employment.
The Presiding Judge, Hon. Justice (Dr.) Isaac Essien, held that the company’s continued retention of the employee, payment of his full salary and entitlements, and failure to take the steps prescribed under its contractual documents amounted to an implied and tacit confirmation of his appointment.
The Court consequently declared that the termination of Mr Oluwaseun's employment as unlawful to the extent that Mikano International failed to comply with the notice requirements applicable to a confirmed employee.
Justice Essien ordered the company to pay Mr Oluwaseun N2 million as the outstanding balance of his salary in lieu of notice, N5 million as general damages, and N1 million as costs, bringing the total monetary award to N8 million.
From the facts, the Claimant- Oluwaseun, had submitted that after completing his probationary period, he continued working for the company for another six months, during which he received his full salary and entitlements without any formal communication confirming his appointment, extending his probation or terminating his employment.
Oluwaseun maintained that the company subsequently issued him a letter of cessation of employment without complying with the notice provisions applicable to confirmed employees.
He therefore challenged the cessation of his employment, arguing that the company’s conduct after the expiration of his probationary period amounted to confirmation of his appointment and entitled him to the benefits of a confirmed employee.
In its defence, Mikano International argued that the expiration of the probationary period did not automatically result in confirmation, as confirmation was dependent on a satisfactory performance evaluation and the achievement of agreed performance targets.
The company further relied on its Employee Handbook, which required confirmation to be communicated in writing, and maintained that the Claimant, being a probationary employee, was entitled to only two weeks’ salary in lieu of notice, and urged the Court to dismiss the suit in its entirety.
In opposition, counsel to the Claimant, C. T. Ajah Esq countered that the company’s decision to retain his client in service, continue paying full salary and entitlements, and allow his client to discharge his responsibilities uninterrupted for six months after the expiration of his probationary period amounted to implied confirmation.
Counsel further argued that Mikano International was estopped by its conduct from treating the Claimant as a probationary employee.
In a well-considered judgment, Justice Essien held that the company’s continued retention of Mr Oluwaseun, payment of his full salary and entitlements, and failure to follow the procedures prescribed in its contractual documents for dealing with a probationary employee established an implied and tacit confirmation of his appointment.
The Court noted that Mikano International failed to demonstrate that it conducted a performance review, extended the Claimant’s probation or terminated his employment within the period contemplated by its Employee Handbook.
Justice Essien further held that the company could not rely on the requirement for written confirmation after failing to take the steps prescribed by its own contractual documents within the stipulated period.
On the claim for salary in lieu of notice, the Court considered Oluwaseun’s offer of appointment, which provided for three months’ written notice or three months’ salary in lieu of notice upon confirmation.
The Court observed that although the company had paid the Claimant one month’s salary in lieu of notice, the amount fell short of the three-month notice requirement applicable to a confirmed employee. It therefore ordered Mikano International to pay the outstanding balance of N2 million and awarded general damages of N5m to Mr Oluwaseun for the abrupt cessation of his employment, humiliation and psychological trauma ar
ising from the company’s conduct.
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