Court awards damages against UBA plc over unlawful staff’s indefinite suspension

February 22, 2026
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An Akure, Ondo State division of National Industrial Court (NICN), has ordered United Bank for Africa (UBA) to pay ₦11.3 million to a former staff member, Adekọyeni Oladejo, over nearly two decades of unpaid salaries following what the court described as an indefinite suspension.

Justice K. D. Damulak, in a judgment delivered on February 18, 2026, in a suit numbered NICN/AK/25/2022, also held that the Adekọyeni Oladejo’s prolonged suspension without pay by UBA Plc amounted to a continuing injury and ultimately a constructive dismissal.

The claimant Oladejo through is lawyer, Omolegbon O. Odusola, had approached the court in July 2022, seeking ₦28 million as salary arrears from August 2006 to July 2022, ₦30 million as general damages, and continued payment of ₦145,000 monthly salary until judgment.

He told the court that he was serving as Branch Operations Manager at the Ode-Aye branch of the bank in Ondo State when he was directed to hand over his duties in August 2006 following allegations of discrepancies in Unity School’s account.

According to him, he was later arrested and prosecuted over the matter but was discharged and acquitted by the court. Despite this, he said he was neither recalled to duty nor formally dismissed. He denied resigning from the bank and maintained that he never received any terminal benefits.

UBA Plc int its Preliminary Objection filed by its lawyer, Dr. A. O. Ajana (SAN) leading two others, however, argued that Oladejo voluntarily resigned in 2006 and was paid salary in lieu of notice along with terminal benefits credited to his account.

UBA Plc also contending that the suit was statute-barred and constituted an abuse of court process because the claimant had previously instituted separate suits relating to false imprisonment and malicious prosecution.

In his ruling,

In deciding the matter, Justice Damulak dismissed UBA Plc’s preliminary objection, holding that a claim for unpaid salaries arising from indefinite suspension constitutes a continuing injury, which is not caught by limitation laws until the injury ceases.

The further held that the earlier suits were based on different causes of action and did not amount to abuse of court process.

On the substantive issues, Justice Damulak found that the bank failed to produce any resignation letter allegedly written by the claimant. Adding that the purported acceptance of resignation was found unreliable due to lack of identifiable signatories and proof of service.

The judge concluded that directing the claimant to hand over duties without reassignment amounted to indefinite suspension.

Owing to the above, Justice Damulak held that the employment relationship subsisted until the date of judgment and deemed it constructively terminated on February 18, 2026.

The judge therefore awarded ₦10,314,681.32 as salary arrears from October 2006 to January 2026, ₦1 million as costs against UBA Plc in favor of the claimant, and ordered that the payment be made within 30 days or interest at 10 percent per annum would apply.

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