Union Bank Ordered to Pay ₦6.48m over Constructive Dismissal

In Short

Nigeria’s National Industrial Court has ruled that Union Bank constructively dismissed a former employee, Edafetite Usin. The court ordered the bank to pay her ₦6,482,552 in damages, notice pay, and legal costs within 30 days.

What Happened

The National Industrial Court of Nigeria, sitting in Lagos, held that Union Bank took actions that amounted to constructive dismissal.

Constructive dismissal means an employer does not directly fire someone, but makes working conditions so difficult or unfair that the employee is effectively forced to leave.

According to the judgment, the bank reversed Usin’s confirmation as Head of General Services eight days after communicating it to her. The court also found that the bank wrote to the Central Bank of Nigeria to demand the reversal of her appointment as Chairperson of the Financial Inclusion Special Interventions Working Group.

The court further cited professional isolation and career stagnation as part of the unfair treatment.

On remedies, the court ordered Union Bank to pay:

• ₦854,632 in lieu of notice (payment instead of a notice period)
• ₦5,127,920 in general damages
• ₦500,000 in costs

Why It Matters

For Nigeria’s banking sector, the ruling is a reminder that employment disputes can move beyond HR issues into reputational and financial risk.

It also highlights how interference with external appointments, especially roles linked to regulators like the CBN, can be viewed by courts as part of a pattern of unfair labour practices.

For employees and operators, the case clarifies that workplace actions like withdrawing a promotion, limiting access to key work, or isolating staff can strengthen claims of constructive dismissal.

More broadly, as banks invest in compliance, fraud controls, and digital operations, governance expectations are rising. Courts are showing they will scrutinise internal decision-making and how it affects staff careers.