Court Orders UBA To Pay Over N43Million In Damages, Other Entitlements To Ex-worker, Abimbola Aiyeta Forced To Resign From Bank

A National Industrial Court sitting in Lagos has ordered the United Bank for Africa (UBA) to pay N43 million in damages to Abimbola Aiyeta, a former Group Head of Procurement in the bank who was forced to resign because she reportedly refused to compromise on the company’s procurement process.

This is contained in a copy of the judgement signed by the trial judge, Hon. Justice R.H Gwandu and obtained by SaharaReporters.

The judge ruled that the evidence canvassed before him showed that Mrs Aiyeta was truly forced to resign and thus she deserved the relief she sought before him.

This judgement has mandated UBA to pay Mrs Aiyeta N20 million in damages, N23 million for her 12 months gross salary and two months’ salary in lieu of notice.

SaharaReporters learnt that the gross salary for principal manager when she left the bank was N23 million per annum.

Mrs Aiyeta claimed before the court that she was forced to resign whilst holding the position of Head, Procurement & Vendor Manager because she failed to compromise on her office ethics and standards.

She insisted on following due diligence in awarding contracts and refused to bend to pressures from the Chairman and Board of Directors, to award contracts to his cronies rather than paying Aiyeta’s severance or terminal benefit as applied to her colleagues who retired at her level.

It was learned that Aiyeta was paid Ten Million, Four Hundred and Thirty-seven Thousand and Two Hundred Naira (N10, 437, 200.00).

Also, instead of paying her three months basic salary in lieu of notice as contemplated by their contract of employment, the Defendant paid her Nine Hundred and Sixty-two Thousand, Four Hundred and Twenty-six Naira and Eighty-eight Kobo (N962, 426. 88k), a far cry from her monthly basic salary at entry point, which was One Million Five Hundred and Eight Three Thousand, Nine Hundred and Thirty-four Naira (N1, 583,934.00).

The court said it can be seen that Mrs Aiyeta was replaced as the Head of Group Procurement and Vendor Management on January 19, 2016, a month before her resignation and that there was no evidence to suggest that she was transferred to another post.

Hence, the court ruled, “The defendant (UBA) was not in a restructuring exercise did they prove that the company laid off staff as a result of redundancy? The Claimant being made redundant therefore would be perceived as a deliberate act which can be evidenced from exhibit ADA 14 pg 8 where it can be seen that the Claimant was replaced as head, Group Procurement and Vendor Management via a memo dated January 19 2016 a month before the Claimants resignation. It is pertinent to note that there is no evidence she was transferred not given another post when she was replaced.

“The fact the Claimant (Mrs Aiyeta) was replaced meant she was deliberately made redundant by the Defendant which is contrary to the provision of the Labour Act that an employer has the duty to provide work for an employee and also reinforces that Claimant’s allegation that she was forced to resign.

“From the evidence before me and the reasons adduced above, I hereby hold that the Claimant was by the Defendant’s actions coerced into resigning her employment with the Defendant.”

Considering the probative nature of the facts and arguments canvassed before him, Justice Gwandu continued, “I hereby award the sum of Twenty Million Naira (N20,000,000) as general damages.”

He continued: “On the Claimants relief for an order of this Honourable Court directing the Defendant to forthwith implement the restructured terms of the Claimant’s existing mortgage loan Agreement dated 18th of March, 2016 at 5% interest for a period of twelve months before it could default to commercial rate, I hereby grant same but that starting from the day of this Judgement for the next 12 months, the Mortgage loan will run at the stipulated 5% on N27,000,000 as per the agreement agreed to by parties on the Claimants relief for the sum of N4, 000, 000. 00 (Four Million Naira Only) as Legal fees for prosecution of this case, I hereby award the sum of 1.5 Million Naira as legal fees/cost of this action against the defendant.”

The court also ruled: “On the Claimant’s relief for payment of three months’ salary in lieu of notice for her coerced resignation -N3,117,666. I have determined that the Claimant’s employment was terminated as result of her being coerced into tendering the resignation letter, this by implication means the Claimant’s employment was wrongfully terminated and she is therefore entitled to be paid salaries in lieu of termination, see exhibit ADA 1b (employment letter), since the Claimant was already paid one month’s salary in lieu of termination, I hereby order the Defendant to pay the Claimant 2 months’ salary in lieu of wrongful termination.”

“I hereby while refusing to grant the Claimant’s relief for N50,000,000 make an order that the Defendant pay the Claimant 12 months of her gross salary and also the outstanding on her status car be written off,” the court also ruled.

All efforts made by SaharaReporters to get the UBA Head of Media and External Relations, Ramon Nasir were not successful.

When he was called, he asked our correspondent to call him back later. But subsequently, he failed to answer repeated calls nor reply to text messages sent to him up till the time of filing this report.

~SaharaReporters