Contempt of Court in Employment Proceedings

In the recent High Court case of Commerzbank AG v Ajao, Commerzbank (the Bank) brought contempt proceedings against its former employee, Mr Ajao, following his unsuccessful Employment Tribunal (ET) claim arising from his dismissal in November 2019.

Mr Ajao alleged that he had been subjected to sexual harassment, assault and discriminatory behaviour by colleagues at the Bank, relying on what he said were work-diary notes to support his allegations. The Bank defended the claim on the basis that the allegations had been fabricated, that Mr Ajao had knowingly given false evidence, and that he had manipulated his diary to bolster his case.

A nine-day final hearing took place before the ET in October 2021. All of Mr Ajao’s claims were dismissed, and he was ordered to pay the Bank’s costs. In a rare step, the Bank then issued contempt proceedings. After a six-day hearing, the High Court found in the Bank’s favour, concluding that Mr Ajao had committed contempt on several occasions, and applying the criminal standard of proof.

The High Court held that Mr Ajao had:

1. Invented allegations of sexualised comments and an attempted “crotch-grab” by a colleague.
2. Falsely claimed that he delayed reporting the alleged conduct out of sympathy for the colleague’s bereavement.
3. Fabricated diary entries to support his account, including a meeting that never took place.
4. Falsely alleged that another colleague had referred to him as “this boy”.

Mr Justice Spencer described these fabrications as a deliberate attempt to “deceive the court into awarding him substantial damages.” He also noted that the attack on the colleague’s integrity was “wicked”, particularly as the allegations were first made while she was grieving for her mother, who had died less than three months earlier, affecting her mental health.

The sanction for contempt will be decided at a later date; however, Mr Ajao could face a custodial sentence of up to two years and/or an unlimited fine.

This case serves as an important reminder of the consequences of giving false evidence during ET proceedings. Although contempt proceedings arising out of ET litigation are extremely rare, the sanctions available to the courts when a person is found in contempt are both wide-ranging and severe.

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