Court Orders Mikano International to Pay Employee ₦8m Over Unlawful Termination

The National Industrial Court has ordered Mikano International to pay ₦8 million to a former employee, Mr Oluwaseun, after ruling that the company had impliedly confirmed his appointment by retaining him for six months beyond his probationary period.

The court, presided over by Justice Isaac Essien, held that the company could not continue to enjoy the employee’s services and pay his full salary after the probation period without formally extending the period or terminating his employment, only to later deny him the benefits of a confirmed employee.

The judgment followed a suit filed by Oluwaseun, who challenged the termination of his employment without the three months’ notice stipulated in his contract for confirmed staff.

The claimant told the court that after completing his probation, Mikano retained him for another six months, continued paying his full salary and allowed him to perform his duties without communicating any extension of his probation or confirmation of his appointment.

However, the company later terminated his employment and paid him only one month’s salary in lieu of notice.

Mikano disputed the claim that his appointment had been confirmed, arguing that confirmation depended on satisfactory performance evaluation and the achievement of agreed targets. It also relied on its employee handbook, which required confirmation to be communicated in writing.

The company maintained that Oluwaseun remained a probationary employee and was therefore entitled to only two weeks’ salary in lieu of notice.

But the claimant’s counsel, C.T. Ajah, argued that the company’s decision to retain his client beyond the probationary period, while continuing to pay his full entitlements, amounted to confirmation by conduct.

In his judgment, Justice Essien held that Mikano’s actions amounted to implied and tacit confirmation of the appointment. He noted that the company failed to show that it had conducted the required performance assessment, extended the probation or terminated the employment within the period prescribed by its contractual documents.

The judge rejected the argument that the absence of a formal confirmation letter meant the claimant remained a probationary employee.

On the notice requirement, the court found that the claimant’s contract entitled a confirmed employee to three months’ written notice or three months’ salary in lieu of notice. Since Mikano had paid only one month, the company was ordered to pay the outstanding two months’ salary, amounting to ₦2 million.

Justice Essien also awarded ₦5 million as general damages over the circumstances surrounding the abrupt termination, including the humiliation and psychological trauma suffered by the claimant.

The court further awarded ₦1 million as costs, bringing the total financial award against Mikano International to ₦8 million.

The ruling underscores that an employer’s conduct after the expiration of a probationary period may establish confirmation of employment, even where no formal confirmation letter has been issued. It also reinforces the obligation of employers to comply with contractual notice requirements when terminating confirmed employees.