The Akure Division of the National Industrial Court of Nigeria (NICN) has ordered United Bank for Africa (UBA) Plc to pay ₦11.3 million to a former employee, Adekọyeni Oladejo, over nearly two decades of unpaid salaries following what the court described as an indefinite suspension.
Delivering judgment on February 18, 2026, in suit No. NICN/AK/25/2022, Justice K. D. Damulak held that Oladejo’s prolonged suspension without pay constituted a continuing injury and amounted to constructive dismissal.
Oladejo, through his counsel, Omolegbon O. Odusola, had approached the court in July 2022, seeking ₦28 million as salary arrears covering the period from August 2006 to July 2022, ₦30 million in general damages, and continued payment of his monthly salary of ₦145,000 until judgment.
The claimant told the court that he was serving as Branch Operations Manager at UBA’s Ode-Aye branch in Ondo State when he was directed in August 2006 to hand over his duties following allegations of discrepancies in Unity School’s account.
He stated that he was subsequently arrested and prosecuted in connection with the allegations but was later discharged and acquitted by the court.
Despite the acquittal, he said he was neither recalled to duty nor formally dismissed by the bank.
Oladejo denied resigning from the bank and maintained that he did not receive any terminal benefits.
However, UBA, in a preliminary objection filed by its counsel, Dr A. O. Ajana (SAN), argued that the claimant voluntarily resigned in 2006 and was paid salary instead of notice along with his terminal benefits, which were allegedly credited to his account.
The bank further contended that the suit was statute-barred and constituted an abuse of court process, noting that Oladejo had earlier filed separate suits relating to false imprisonment and malicious prosecution.
In his ruling, Justice Damulak dismissed the bank’s preliminary objection, holding that claims for unpaid salaries arising from indefinite suspension amount to a continuing injury, which is not caught by limitation laws until the injury ceases.
The court also held that the earlier suits were based on different causes of action and did not constitute an abuse of the court process.
On the substantive issues, the judge found that UBA failed to produce any resignation letter allegedly written by the claimant.
The court further held that the purported acceptance of resignation was unreliable, citing the absence of identifiable signatories and proof of service.
Justice Damulak concluded that directing the claimant to hand over his duties without reassignment amounted to indefinite suspension.
He held that the employment relationship subsisted until the date of judgment and deemed it constructively terminated on February 18, 2026.
The court consequently awarded ₦10,314,681.32 as salary arrears covering October 2006 to January 2026 and ₦1 million as costs against UBA Plc, bringing the total award to over ₦11.3 million.
The judge ordered the bank to pay the judgment sum within 30 days, failing which it would attract interest at the rate of 10 per cent per annum until fully liquidated.
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