The National Industrial Court of Nigeria (NICN), sitting in Lagos, has held that United Bank for Africa (UBA) Plc constructively dismissed about 20 of its employees by compelling them to resign their appointments, ruling that the bank’s actions amounted to a fundamental breach of their contracts of employment.
Justice Nkechi Gerald Nweneka delivered the judgment in Suit No. NICN/LA/286/2020, filed by Barrister Elvis E. Asia on behalf of the affected bankers, who alleged that they were forced to resign between January 3 and 6, 2020, under the threat of forfeiting their entitlements if they declined to do so.
The claimants—drawn from different units of the bank—maintained that their purported “resignations” were not voluntary but were induced by coercive measures deployed by the bank, which they said left them with no real choice but to exit their employment.
They consequently approached the court seeking nine reliefs, including declarations that they were constructively dismissed; that personal loans granted to them shortly before their exit were unconscionable and designed to deprive them of terminal benefits; cancellation of the loans or the application of insurance proceeds to offset them; payment of outstanding salaries; N400 million in damages for wrongful termination; remittance of National Housing Fund (NHF) deductions; provision of satisfactory work references; N10 million damages for defamation; and the cost of the action.
In its defence, UBA, through its Human Resource Officer, Yvonne Solomon, denied all allegations of wrongdoing, insisting that the employees resigned voluntarily in accordance with their contracts and applicable principles of common law.
The bank also challenged the competence of the suit, arguing that it was a nullity due to misjoinder of parties, and denied engaging in any unfair labour practices or discrimination.
After evaluating the pleadings, evidence, and submissions of counsel, Justice Nweneka rejected the bank’s position and upheld the claim for constructive dismissal.
“Relief one is for a declaration that the claimants were constructively dismissed by the defendant. I found that the claimants were constructively dismissed by the defendant,” the judge held.
However, the court declined to grant several of the monetary claims sought by the former employees. On the allegation that personal loans granted to the claimants between August and December 2019 were unconscionable and oppressive, the court held that the claim was not established and dismissed it.
On the alternative relief relating to the loans, the court ordered UBA to apply insurance proceeds to liquidate the outstanding loan obligations, having found that the claimants involuntarily lost their jobs in circumstances covered by the relevant loan agreements.
The court also dismissed the claim for payment of salaries from the date of constructive dismissal to the date of judgment, holding that there was no evidence that the claimants rendered services after their exit and noting that each of them had been paid salary in lieu of notice, which regularised the breach of contract.
Similarly, the court rejected the N400 million damages claim for wrongful termination, finding no proof that the terminal benefits paid to the claimants were incorrectly calculated.
On the issue of alleged non-remittance of NHF deductions, the court held that although UBA’s bulk remittance evidence did not specifically establish payments made on behalf of the claimants, the claim failed because it was in the nature of special damages and was neither specifically pleaded nor proved.
The court, however, granted the relief compelling UBA to provide satisfactory work references to the claimants when requested, without reference to alleged non-performance or outstanding loans.
Justice Nweneka held that the bank’s employee handbook imposed an obligation to provide such references and that the claimants should not be treated unfairly.
The claim for N10 million damages for defamation was dismissed for lack of proof.
On costs, the court awarded N750,000 against UBA, noting that the litigation spanned nearly five years, involved multiple court appearances, and was pursued in the face of prevailing economic conditions, including inflation and the depreciating value of the naira.
The court accordingly entered judgment granting reliefs one, three, seven, and nine, while dismissing reliefs two, four, five, six, and eight.
