Court Faults Bank for Blocking Employee’s CBN Appointment, Declares Her Constructively Dismissed

Wale Igbintade

The National Industrial Court of Nigeria (NICN), Lagos Judicial Division, has held that Union Bank of Nigeria Plc constructively dismissed a former employee, Mrs. Edafetite Usin, after subjecting her to career stagnation, unfair administrative treatment and professional isolation.

Justice Joyce Damachi, in her judgment, faulted the bank for reversing Usin’s confirmation as Head of General Services eight days after it was communicated to her and subsequently writing to the Central Bank of Nigeria (CBN) to demand the reversal of her appointment as Chairperson of the Financial Inclusion Special Interventions Working Group (FISIWG).

The court also found that the bank failed to adequately justify Usin’s redeployment to Abuja in October 2021, particularly its failure to resolve her concerns over accommodation and an existing mortgage in Lagos.

Justice Damachi held the cumulative effect of the bank’s actions created a hostile work environment that made continued employment intolerable and forced her to resign.

The court consequently declared that Usin was constructively dismissed and ordered Union Bank to pay her N854,632 as one month’s salary in lieu of notice, N5,127,920 as general damages and N500,000 as costs.

The judgment followed a suit marked NICN/LA/239/2022, instituted by Usin against the bank over her employment and eventual resignation.

She joined Union Bank on August 14, 2009, as a Deputy Manager and was confirmed in November 2010.

She was promoted to Manager in October 2012 but claimed that, despite consistently strong performance appraisals and significant contributions to the bank, she was not promoted again during the remainder of her employment.

Usin had sought, among other reliefs, a declaration of constructive dismissal, N854,632 as salary in lieu of notice, N86 million representing salaries she claimed she would have earned as Senior Manager, N50 million for salaries allegedly lost as Principal Manager, N120 million in exemplary damages and N5 million as costs.

Union Bank opposed the claims, maintaining that Usin voluntarily resigned after giving one month’s notice in accordance with her contract.

The bank argued that promotion was a matter of managerial discretion and not a contractual entitlement, while her redeployment to Abuja was a lawful administrative decision accompanied by relocation allowances.

Justice Damachi acknowledged that promotion was generally a managerial prerogative and that Usin’s contract did not guarantee automatic promotion.

However, the court found the circumstances surrounding the reversal of her confirmation as Head of General Services significant.

According to the judgment, Usin’s confirmation was communicated on January 25, 2017, but reversed eight days later.

Although the bank attributed the reversal to the absence of the Managing Director’s signature, the court found that it failed to explain why the confirmation had been communicated in the first place or why it was reversed despite her strong performance record.

The court also attached significant weight to Union Bank’s intervention in Usin’s CBN appointment.

She had been appointed Chairperson of the FISIWG in April 2021, but the bank subsequently wrote to the CBN demanding an immediate reversal of the appointment.

Justice Damachi held that the bank’s action was inconsistent with its implied duty of mutual trust, confidence and support towards its employee, noting that the bank failed to show that the CBN appointment conflicted with Usin’s duties or involved any misconduct.

The court described the intervention as a hostile act designed to suppress her career prospects.

On the Abuja redeployment, the bank’s sole witness, Mr. Francis Idiaghe, admitted under cross-examination that he had not worked with Usin, was not directly involved in her redeployment and did not know whether accommodation had been provided for her.

He also admitted that the bank’s relocation policy was not before the court.

The court found the admissions damaging to the bank’s defence, particularly because Usin had raised concerns over her existing mortgage in Lagos and the implications of relocating to Abuja.

The court held that the bank failed to adequately address the concerns and that the claimant was subsequently left without professional responsibilities from October 2021 until her resignation.

Justice Damachi described the period as “enforced idleness” and “professional isolation”, holding that keeping a senior employee without roles or responsibilities for about five months amounted to psychological and professional injury.

The court further criticised the bank for failing to produce its disciplinary committee minutes and relocation guidelines, despite evidence that the documents existed.

Invoking Section 167(d) of the Evidence Act 2011, the court presumed that the withheld documents would have been unfavourable to the bank and found significant gaps in its defence.

However, the court rejected Usin’s N136 million claim for salaries she would allegedly have earned as Senior Manager and Principal Manager, holding that she was never promoted to either position.

It also rejected her N120 million claim for exemplary damages, finding that although the bank’s conduct amounted to unfair labour practices, it did not meet the legal threshold for exemplary damages.

The court nevertheless awarded N5,127,920 as general damages, taking into account Usin’s 12 years of service, strong performance appraisals, reversal of her confirmation, interference with her CBN appointment and period of enforced professional inactivity.

It also awarded N500,000 as costs.

The court ordered Union Bank to pay the judgment sums within 30 days, failing which they would attract post-judgment interest at 10 per cent per annum until fully liquidated.