National Industrial Court of Nigeria sitting in Lagos State has ordered United Bank for Africa (UBA) to pay N48.1 million in compensation to Abimbola Dayo-Aiyetan, a former worker of the company who was coerced to resign from her job.
Abimbola who is the wife of a veteran journalist, and founder of the International Centre for Investigative Reporting Dayo-Aiyetan, was until her “coerced resignation” the Head, Group Procurement and Vendor Manager of the bank. The position, according to a court verdict obtained by our reporter, is equivalent to assistant general manager.
Although, Abimbola argued that she was replaced as Head, Group Procurement and Vendor Manager of the bank to render her redundant, documents reviewed by the court corroborated her claim. Even though the bank denied coercing her to resign, the court ruled that available evidence proved otherwise.
Abimbola was forced out of the company for opposing the awarding of contracts to the cronies of the bank’s chairman for the board of directors.
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Forced to resign on February 18, 2016, the journalist’s wife started working with the bank in 2007 as a senior manager. She was subsequently promoted to various ranks until her resignation. She said the bank threatened her to resign or face “outright dismissal.”
EX-GRATIA INSTEAD OF DISENGAGEMENT BENEFITS
She was paid N10.4 million ex-gratia [payment given as a favour or from a sense of moral obligation rather than because of any legal requirement.]
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Abimbola was, however, denied severance or terminal benefits as applied to her colleagues who retired at her level. Her counsels — Seun Omotoba and Nnamdi Oluonye — argued that she deserved to be paid a three-month salary in lieu of notice as she demanded. Instead, the bank paid N962,437,000 — an amount way below her N1.5 million monthly salary.But UBA countered her claims, saying there was nothing like “disengagement benefits” in the contracts signed between them. It told the court that the claimant was hugely paid.
COURT RULES AGAINST BANK
The court presided over by Justice R.H Gwandu, on October 23, 2023, ruled that Abimbola be paid N43 million in compensation. The court’s ruling, the judge said was premised on complaint and statement of fact dated and filed on October 14, 2018.
Following the her forceful resignation, Abimbola had asked that her salary for 12 months be paid. She also requested that her outstanding on her car status be written and that her existing mortgage loan be restructured to 5%. Abimbola’s salary for per annum at the time she left the bank was N23 million.
Among other demands, she prayed the court that UBA pay her N50 million terminal benefits, N4 million legal fees and three months’ salary in lieu of notice.
However, the court ruled out her demand for 50m terminal benefits. It also ordered the bank to pay her 12 months’ gross salary and write off the outstanding status on her car.
Gwandu further ruled that the claimant be paid two months’ salary in lieu of notice for her coerced resignation. This is equivalent to N3,615,271.02 million.
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According to him, the bank would pay another N20 million for general damages and N1.5 million legal fees for the prosecution of the case.
The court noted the money should be paid within a month from the date of the judgment, noting it would attract “an interest of 10% per annum until it is fully liquidated.”
