Probation
is simply an agreed trial period for a worker to prove his worth on a job to
his employer and assess the worth of the job to himself. Promotion is an
elevation of a worker in status within a company based on performance or other
considerations as may be agreed in an employment contract or determined by the
employer. Confirmation is the intermediate act of endorsement of a new worker’s
performance by a company sometimes between the periods of probation and
promotion; it is a testament that an employer is satisfied with the performance
of a new employee.
is simply an agreed trial period for a worker to prove his worth on a job to
his employer and assess the worth of the job to himself. Promotion is an
elevation of a worker in status within a company based on performance or other
considerations as may be agreed in an employment contract or determined by the
employer. Confirmation is the intermediate act of endorsement of a new worker’s
performance by a company sometimes between the periods of probation and
promotion; it is a testament that an employer is satisfied with the performance
of a new employee.
Probation
and promotion of a worker are, generally, matters which are based on each
worker’s contract. As such, an employment lawyer needs to review the employment
contract before an opinion can be formed on the ramifications of an employee’s
probation or promotion. Where the terms of employment are contained in various
documents, it is important to read all the various documents together to
decipher the intention of the parties regarding probation or promotion. From
experience, the offer letter of employment, the appointment letter (if it is
different from the offer letter), the terms and conditions of employment, staff
hand book, policy on review of rank/grade level, disciplinary procedures rules
as well as official circulars and notices circulated internally are all
relevant in determining the respective rights and powers of workers and
employers on probation and promotion.
and promotion of a worker are, generally, matters which are based on each
worker’s contract. As such, an employment lawyer needs to review the employment
contract before an opinion can be formed on the ramifications of an employee’s
probation or promotion. Where the terms of employment are contained in various
documents, it is important to read all the various documents together to
decipher the intention of the parties regarding probation or promotion. From
experience, the offer letter of employment, the appointment letter (if it is
different from the offer letter), the terms and conditions of employment, staff
hand book, policy on review of rank/grade level, disciplinary procedures rules
as well as official circulars and notices circulated internally are all
relevant in determining the respective rights and powers of workers and
employers on probation and promotion.
The
rights of a worker under probation
rights of a worker under probation
A
person does not cease to be an employee of a company merely because he is on
probation. As such, in my view, a worker on probation is entitled to all
express benefits in an employment contract or those implied by the labour law.
Interestingly, however, Justice J. D. Peters of the National Industrial Court
held in Ogbonna v. Neptune Software Limited [2016] 64 N.L.L.R. (Pt. 228)
511 that an employer is not under any obligation to give notice of
termination of the service of an employee who is on probation until the
employment is confirmed. In other words, according to Honourable Justice J. D.
Peters, the employment relationship between a worker and a company in thatOgbonna case
was inchoate and that the need to give a notice for termination for one
calendar month stated in the claimant’s letter of employment would only arise
after the confirmation of his employment.
person does not cease to be an employee of a company merely because he is on
probation. As such, in my view, a worker on probation is entitled to all
express benefits in an employment contract or those implied by the labour law.
Interestingly, however, Justice J. D. Peters of the National Industrial Court
held in Ogbonna v. Neptune Software Limited [2016] 64 N.L.L.R. (Pt. 228)
511 that an employer is not under any obligation to give notice of
termination of the service of an employee who is on probation until the
employment is confirmed. In other words, according to Honourable Justice J. D.
Peters, the employment relationship between a worker and a company in thatOgbonna case
was inchoate and that the need to give a notice for termination for one
calendar month stated in the claimant’s letter of employment would only arise
after the confirmation of his employment.
It
is difficult to agree with the reasoning of the judge in the foregoing case
given that an employment relationship is founded on contract following offer
and acceptance, with consideration taking the form of the employee’s resumption
and performance of a designated job. There are many judicial decisions of a
superior court to the effect that a contract of employment comes into existence
when a clear offer made by a company is unequivocally accepted by a job
applicant provided that there is no outstanding condition precedent to
assumption of work which must be fulfilled by the applicant. In fact, and law,
if such outstanding conditions are in the form of medical clearance, provision of
referees, verification of credentials etc. (as they usually are), the employer
can neither unilaterally revoke the offer after the applicant’s acceptance of
same before the deadline for fulfilling the other outstanding conditions, nor
prevent the applicant from fulfilling the rest of the conditions. So, upon
fulfilling the conditions for acceptance of an employment offer and resumption
of duty with a company, it will be inconsistent with judicial precedent to hold
that the employment contract between the worker and the company, in the
circumstances, is inchoate, as Justice J. D. Peters did in the Ogbonna’scase,
merely because the employment relationship commenced with probation. Employment
contracts are not sui generis as they are governed by common law rules
on general contract making which entail offer, acceptance and consideration,
including part-performance. See Federal Government of Nigeria v. Zebra
Energy (2002) 18 NWLR (Pt. 798) 162.
is difficult to agree with the reasoning of the judge in the foregoing case
given that an employment relationship is founded on contract following offer
and acceptance, with consideration taking the form of the employee’s resumption
and performance of a designated job. There are many judicial decisions of a
superior court to the effect that a contract of employment comes into existence
when a clear offer made by a company is unequivocally accepted by a job
applicant provided that there is no outstanding condition precedent to
assumption of work which must be fulfilled by the applicant. In fact, and law,
if such outstanding conditions are in the form of medical clearance, provision of
referees, verification of credentials etc. (as they usually are), the employer
can neither unilaterally revoke the offer after the applicant’s acceptance of
same before the deadline for fulfilling the other outstanding conditions, nor
prevent the applicant from fulfilling the rest of the conditions. So, upon
fulfilling the conditions for acceptance of an employment offer and resumption
of duty with a company, it will be inconsistent with judicial precedent to hold
that the employment contract between the worker and the company, in the
circumstances, is inchoate, as Justice J. D. Peters did in the Ogbonna’scase,
merely because the employment relationship commenced with probation. Employment
contracts are not sui generis as they are governed by common law rules
on general contract making which entail offer, acceptance and consideration,
including part-performance. See Federal Government of Nigeria v. Zebra
Energy (2002) 18 NWLR (Pt. 798) 162.
In
my view, a worker on probation is entitled to all the benefits stated in a
contract of employment which are enjoyable on probation and those implied by
law in deserving circumstances. A worker on probation is entitled to be paid
the agreed salaries for the probationary period. He is also entitled to pension
contribution from the employer. An employer of a worker on probation cannot
deny liability for remitting personal income tax of the employee on the ground
that the worker’s employment was probationary. If probation lasts longer than a
year, in my view, the worker is entitled to an annual leave. Both the employer
and employee are entitled to terminate the working relationship during
probation as agreed in the employment contract. It is necessary to repeat here,
only for emphasis, that in addition to the foregoing benefits, a worker on
probation is entitled to all other benefits or rights provided in his contract
of employment which are enjoyable during probation.
my view, a worker on probation is entitled to all the benefits stated in a
contract of employment which are enjoyable on probation and those implied by
law in deserving circumstances. A worker on probation is entitled to be paid
the agreed salaries for the probationary period. He is also entitled to pension
contribution from the employer. An employer of a worker on probation cannot
deny liability for remitting personal income tax of the employee on the ground
that the worker’s employment was probationary. If probation lasts longer than a
year, in my view, the worker is entitled to an annual leave. Both the employer
and employee are entitled to terminate the working relationship during
probation as agreed in the employment contract. It is necessary to repeat here,
only for emphasis, that in addition to the foregoing benefits, a worker on
probation is entitled to all other benefits or rights provided in his contract
of employment which are enjoyable during probation.
The
effect of confirmation of employment
effect of confirmation of employment
Confirmation
is an attestation of an employer that a worker’s performance is satisfactory in
a period of probation for the purpose of extending the employment in accordance
with agreement. The length of probation before confirmation is a matter of
agreement. Most employment contracts provide for power of the employer to extend
a period of probation if the worker’s performance is unsatisfactory. Whenever
confirmation is due, it is advised to be in writing (in a letter or memo of
confirmation) with all necessary incidental terms clearly spelt out to avoid
the incidence of legal presumptions. Upon confirmation, a worker stands to
enjoy all the benefits which are attached to his employment.
is an attestation of an employer that a worker’s performance is satisfactory in
a period of probation for the purpose of extending the employment in accordance
with agreement. The length of probation before confirmation is a matter of
agreement. Most employment contracts provide for power of the employer to extend
a period of probation if the worker’s performance is unsatisfactory. Whenever
confirmation is due, it is advised to be in writing (in a letter or memo of
confirmation) with all necessary incidental terms clearly spelt out to avoid
the incidence of legal presumptions. Upon confirmation, a worker stands to
enjoy all the benefits which are attached to his employment.
Confirmation
of employment may be express such that an employer writes a letter or memo to
the employee or circulates same within the company to confirm a worker’s
employment at the end of probation. However, where probationary period has
ended but the employer neither expressly extends it nor terminates the
employment, the law presumes that the employment has been confirmed impliedly.
Under Nigerian employment law, at least from the various cases reviewed in the
course of this work, there is no implied extension of probation by the employer
and no such presumption is made in favour of an employer where such employer
fails to expressly extends a probationary period or terminates an
unsatisfactory service of a worker which extended after the expiration of an
agreed probation.
of employment may be express such that an employer writes a letter or memo to
the employee or circulates same within the company to confirm a worker’s
employment at the end of probation. However, where probationary period has
ended but the employer neither expressly extends it nor terminates the
employment, the law presumes that the employment has been confirmed impliedly.
Under Nigerian employment law, at least from the various cases reviewed in the
course of this work, there is no implied extension of probation by the employer
and no such presumption is made in favour of an employer where such employer
fails to expressly extends a probationary period or terminates an
unsatisfactory service of a worker which extended after the expiration of an
agreed probation.
In
line with international best practice and labour standard, a Nigerian court
held in a case that the continuation of services after expiry of the probation
period without a new contract being drawn up means that the employment has been
impliedly confirmed and that a contract of indeterminate duration has taken
effect from the date when the offer for probationary service began. In the said
case, the claimant was engaged for a probationary period of two (2) years but
he was made to work for six (6) years without confirmation. The employment was
eventually terminated without notice or salary in lieu of notice. The
argument advanced by the employer was that the employment was never confirmed.
The court rejected the argument of the company and upheld the claims of the
employee in part. According to Honourable Justice P. O. Lifu (JP), such
termination amounted to unfair labour practice contrary to section254C (1) (f)
of the Constitution as same was incompatible with international best labour
practice.
line with international best practice and labour standard, a Nigerian court
held in a case that the continuation of services after expiry of the probation
period without a new contract being drawn up means that the employment has been
impliedly confirmed and that a contract of indeterminate duration has taken
effect from the date when the offer for probationary service began. In the said
case, the claimant was engaged for a probationary period of two (2) years but
he was made to work for six (6) years without confirmation. The employment was
eventually terminated without notice or salary in lieu of notice. The
argument advanced by the employer was that the employment was never confirmed.
The court rejected the argument of the company and upheld the claims of the
employee in part. According to Honourable Justice P. O. Lifu (JP), such
termination amounted to unfair labour practice contrary to section254C (1) (f)
of the Constitution as same was incompatible with international best labour
practice.
There
is no specific legislation regulating confirmation of employment in Nigeria.
However, whenever there is any employment dispute regarding probationary
service, the employment contract is usually the proper guide to understanding
the rights of a worker under probation and after confirmation. The employer
must follow whatever procedure that is agreed in the employment contract. Where
confirmation of employment is subject to satisfactory performance by the
worker, a performance appraisal is essential, in my opinion, to evidence a
transparent process by which an employer arrives at a decision not to confirm
an employee’s service after probation.
is no specific legislation regulating confirmation of employment in Nigeria.
However, whenever there is any employment dispute regarding probationary
service, the employment contract is usually the proper guide to understanding
the rights of a worker under probation and after confirmation. The employer
must follow whatever procedure that is agreed in the employment contract. Where
confirmation of employment is subject to satisfactory performance by the
worker, a performance appraisal is essential, in my opinion, to evidence a
transparent process by which an employer arrives at a decision not to confirm
an employee’s service after probation.
Promotion
as a right or privilege
as a right or privilege
Promotion
of staff is a most controversial aspect of employment relationship largely
because of its perception or misconception as a right or privilege. Promotion
or lack of it can turn out to be ugly, leaving an unsavoury feeling in a work
environment, depending on the procedures adopted by a company to arrive at a
decision to promote or not to promote. Generally, under Nigerian employment
law, promotion is not a right but a privilege; it is usually expected to be
earned. Though the foregoing principle of law has its exceptions. In a case
decided by Honourable Justice Shogbola of the National Industrial Court on 9th
April 2014, the court found for a claimant who has been unlawfully terminated
from employment as a police officer but refused to grant the reliefs on
promotion on the ground that promotion of staff is not a right. Interestingly,
however, about a year after, Honourable Justice J. D. Peters of the same court,
in another case, held on 5th March 2015 that where promotion is based on agreed
conditions which the employee has fulfilled, it would be a breach of agreement
if the employer fails to approve his promotion.
of staff is a most controversial aspect of employment relationship largely
because of its perception or misconception as a right or privilege. Promotion
or lack of it can turn out to be ugly, leaving an unsavoury feeling in a work
environment, depending on the procedures adopted by a company to arrive at a
decision to promote or not to promote. Generally, under Nigerian employment
law, promotion is not a right but a privilege; it is usually expected to be
earned. Though the foregoing principle of law has its exceptions. In a case
decided by Honourable Justice Shogbola of the National Industrial Court on 9th
April 2014, the court found for a claimant who has been unlawfully terminated
from employment as a police officer but refused to grant the reliefs on
promotion on the ground that promotion of staff is not a right. Interestingly,
however, about a year after, Honourable Justice J. D. Peters of the same court,
in another case, held on 5th March 2015 that where promotion is based on agreed
conditions which the employee has fulfilled, it would be a breach of agreement
if the employer fails to approve his promotion.
What
is clear from a review of cases on promotion is that where a company’s staff
handbook or terms and conditions of employment provide for clear procedure for
promotion, failure of an employer to comply with the procedures may give rise
to liability for breach of contract in an action against the company by an
aggrieved staff. There is no laid down rule or guide for determining a right or
wrong promotion decision. Every employment contract will have its own
peculiarities on which, upon a proper review, an employment lawyer can provide
independent advice regarding the rights of either party. Perhaps I should add
that it is an onerous task for an aggrieved employee to successfully challenge
his employer’s decision on promotion, however unfavourable. There is a
presumption that every employee understands the terms of his or her engagement
at the time of accepting an offer of employment; and the onus to prove any
allegation of fraud or inducement rests on him. Malice and discrimination are
not enough in themselves to impute liability to a company unless there is a
clear evidence to support such allegations. Where a decision on promotion has
been wrongfully exercised, the court has power to entertain the complaints of
an aggrieved employee who has been affected by such decision.
is clear from a review of cases on promotion is that where a company’s staff
handbook or terms and conditions of employment provide for clear procedure for
promotion, failure of an employer to comply with the procedures may give rise
to liability for breach of contract in an action against the company by an
aggrieved staff. There is no laid down rule or guide for determining a right or
wrong promotion decision. Every employment contract will have its own
peculiarities on which, upon a proper review, an employment lawyer can provide
independent advice regarding the rights of either party. Perhaps I should add
that it is an onerous task for an aggrieved employee to successfully challenge
his employer’s decision on promotion, however unfavourable. There is a
presumption that every employee understands the terms of his or her engagement
at the time of accepting an offer of employment; and the onus to prove any
allegation of fraud or inducement rests on him. Malice and discrimination are
not enough in themselves to impute liability to a company unless there is a
clear evidence to support such allegations. Where a decision on promotion has
been wrongfully exercised, the court has power to entertain the complaints of
an aggrieved employee who has been affected by such decision.
How
to determine “satisfactory performance” of worker in matters of promotion
to determine “satisfactory performance” of worker in matters of promotion
In
the discussion of promotion in employment law, the requirement of “satisfactory
performance” is the most subjective condition a worker is required to meet.
This is because the management of company determines what amounts to
satisfactory performance of a worker. Hence, the court usually adopts a strict
rule of interpretation of any promotion policy and will readily resolve any
ambiguity in the policy in favour of a worker. In a case decided against Zenith
Bank Plc, the employment contract stated that the claimant would be promoted
upon confirmation and subject to an above average performance rating (minimum
of B+). The claimant’s employment was confirmed at the end of probation
but he was not promoted despite his “A” performance rating. The court,
relying on the last performance appraisal, found for the claimant on the ground
that his performance was satisfactory to merit promotion. Consequently, the
court awarded damages in the sum of money representing the difference in
salaries of the claimant as the time of the suit and those which he would have
earned in (as well as bonuses and benefits accruable to) the higher office to
which he ought to have been promoted.
the discussion of promotion in employment law, the requirement of “satisfactory
performance” is the most subjective condition a worker is required to meet.
This is because the management of company determines what amounts to
satisfactory performance of a worker. Hence, the court usually adopts a strict
rule of interpretation of any promotion policy and will readily resolve any
ambiguity in the policy in favour of a worker. In a case decided against Zenith
Bank Plc, the employment contract stated that the claimant would be promoted
upon confirmation and subject to an above average performance rating (minimum
of B+). The claimant’s employment was confirmed at the end of probation
but he was not promoted despite his “A” performance rating. The court,
relying on the last performance appraisal, found for the claimant on the ground
that his performance was satisfactory to merit promotion. Consequently, the
court awarded damages in the sum of money representing the difference in
salaries of the claimant as the time of the suit and those which he would have
earned in (as well as bonuses and benefits accruable to) the higher office to
which he ought to have been promoted.
Review
of Promotion procedures
of Promotion procedures
The
management of a company reserves the right to review the terms and conditions
of an employment contract, including those pertaining to promotion of staff.
However, when such review takes place, every affected staff ought to be
promptly informed about the details of the new promotion policy. It is
advisable to ensure that such management decision is not perverse as such that
will give the impression that an employee is obviously prejudiced or denied of
an entitlement which has become due. Where promotion is due to a worker, any
unilateral decision by a company to review a promotion policy to prejudice or
deny the worker may be deemed as a breach of agreement. Such affected worker
may be entitled to compensation in damages in any action challenging the
company’s decision during or after his resignation from the employment. It only
needs to be added that when a prejudicial decision is taken on promotion, a
right of action is deemed have accrued to an affected staff and he or she is
entitled to resign immediately and seek redress against the company.
management of a company reserves the right to review the terms and conditions
of an employment contract, including those pertaining to promotion of staff.
However, when such review takes place, every affected staff ought to be
promptly informed about the details of the new promotion policy. It is
advisable to ensure that such management decision is not perverse as such that
will give the impression that an employee is obviously prejudiced or denied of
an entitlement which has become due. Where promotion is due to a worker, any
unilateral decision by a company to review a promotion policy to prejudice or
deny the worker may be deemed as a breach of agreement. Such affected worker
may be entitled to compensation in damages in any action challenging the
company’s decision during or after his resignation from the employment. It only
needs to be added that when a prejudicial decision is taken on promotion, a
right of action is deemed have accrued to an affected staff and he or she is
entitled to resign immediately and seek redress against the company.
Associate
at Udo Udoma & Belo-Osagie
at Udo Udoma & Belo-Osagie