AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
No Nigerian statute sets how long probation must last; the length, pay and confirmation terms come from the employment contract or handbook. For workers covered by the Labour Act, the minimum notice is one day where employment has lasted three months or less and one week after that, and the employer must give a written statement of terms within three months of the start date.
Probation is a contract term, not a statutory status
The Labour Act does not mention probation. It sets minimum protections that apply from the first day, and leaves the rest to the contract. So three months, six months or a year are all common in Nigeria, and each is lawful as long as the contract says so and the statutory minimums are respected. What probation changes in practice is usually the notice period, eligibility for some benefits, and whether the employee's appointment has been confirmed.
Two points matter before anything else. First, the Act's definition of "worker" covers people on contracts for manual labour or clerical work and excludes those exercising administrative, executive, technical or professional functions, so managers and professionals rely mainly on their contracts. Second, written terms are compulsory: section 7 requires the employer to give a written statement, no later than three months after employment begins, covering pay, hours, holidays, sick pay and the notice each side must give. If your probation period is three months, that statement should be in the new hire's hands before probation ends.
How long should probation be?
Choose a length that fits how long it takes to judge the role. A till operator's accuracy shows within weeks; a sales manager's pipeline may take a quarter. Whatever you pick, put it in writing with three things:
- the start and end date of probation, and whether you may extend it (and by how long);
- the notice either side must give during probation; and
- what confirmation looks like: a letter, a review meeting, or automatic confirmation if nothing is said.
The last point is often missed. If the contract is silent and the employer simply carries on after the end date, the employee will usually argue they were confirmed by conduct. A short confirmation letter avoids that argument.
Notice during probation
For covered workers, section 11 sets minimum notice by length of service:
| Length of continuous employment | Minimum notice (Labour Act s.11) |
|---|---|
| Three months or less | One day |
| More than three months, under two years | One week |
| Two years to under five years | Two weeks |
| Five years or more | One month |
Notice of a week or more must be in writing, either side may accept pay instead of notice, and all wages due must be paid on or before the notice expires. A contract can give more notice than these minimums but not less. Many employers write "one week's notice or pay in lieu during probation, one month after confirmation", which is lawful for covered workers.
Pay and leave during probation
Probation does not suspend the law on wages. Pay must be in legal tender (or by cheque with the worker's written consent), at intervals of no more than a month, and the deduction limits apply in full; see which salary deductions are legal. Paid sick leave of up to 12 working days a year under section 16 has no qualifying period in the Act, so a probationer certified ill by a registered medical practitioner is covered. Annual leave is different: the statutory six working days arise after 12 months' continuous service, so most probationers have not yet earned it.
Pension and statutory deductions also start from the first payroll. Our guide to hiring your first employee covers the registrations you need before then.
Ending probation: confirm, extend or release
Confirming
Hold a short review against the goals you set at the start, then issue a confirmation letter that states the effective date and any change in pay or notice.
Extending
Only extend if the contract allows it, and do it in writing before the original end date, saying what needs to improve and by when.
Releasing
- Check the contract's probation notice clause and the Labour Act minimum; use whichever is longer.
- Give notice in writing (required for a week or more), or pay in lieu on basic money wages.
- Pay all wages due, and any agreed benefits, on or before the last day.
- Record the reason internally, even though the contract may not require you to give one. The National Industrial Court has in some cases treated termination without a reason as an unfair labour practice, although the Court of Appeal in Oak Pensions v Olayinka (2017) held that the contract prevails; see whether you can sack without a reason.
Mistakes that cause probation disputes
- No written terms. If the offer letter only says "subject to probation", the employee can argue about length and notice. Section 7 requires written particulars within three months anyway.
- Extending after the end date. An extension sent a week after probation ended reads as an attempt to undo a confirmation that has already happened.
- Withholding the last salary. Wages due must be paid by the end of notice; a release is not a reason to hold pay back pending a handover.
- Deducting training or uniform costs on exit. The Labour Act caps total deductions at one third of a month's wages and bars fines; see deducting uniform or training costs.
- Treating probation as a fixed-term contract. A probationer is usually a permanent employee who has not yet been confirmed. A fixed-term contract ends on its expiry date under section 9(7), which is a different arrangement with different expectations.
Where Pryme fits
With Pryme payroll, a new hire's first salary and any final payment at the end of probation go out from your business account with a clear record. The Compliance agent can keep a dated list of probation end dates so confirmations are not missed; it prepares the reminders and letters, and a person signs off.
Questions people ask
Is there a legal probation period in Nigeria?
No. The length is set by the contract. The Labour Act sets minimum notice and requires written terms within three months of starting.
Can an employer sack you during probation without notice?
For a worker covered by the Labour Act, the minimum is one day's notice in the first three months and one week after that, or pay in lieu, unless the dismissal is for serious misconduct.
Do you get paid during probation?
Yes. The Labour Act's wage protections apply from day one, including legal tender payment and the limits on deductions.
Can probation be extended?
Yes, if the contract allows it. Extend in writing before the original end date and say what needs to improve.
Sources
- Labour Act (Chapter 198 LFN 1990, now Cap L1 LFN 2004), full text · accessed Oct 2026
- Templars ThoughtLab: Is termination of employment without reason still valid in Nigeria? (20 Jun 2023) · accessed Oct 2026
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