This case shows how seriously the courts treat dishonesty in litigation. Employers who keep clear records and follow fair processes should be reassured that they are able to defend against false claims.

Background

Mr Ajao was dismissed by his employer, Commerzbank AG, in 2019 for conduct-related reasons. Following his dismissal, Mr Ajao brought a range of serious allegations against the company and six individuals, including discrimination, victimisation, wrongful dismissal, harassment and breach of contract. Mr Ajao further accused an ex-colleague of sexual assault. Mr Ajao sought damages in excess of £160,000. After the hearing, all claims were dismissed by the Employment Tribunal, and it was held that Mr Ajao fabricated the allegations and tampered with documents to substantiate his claim. Subsequently, a costs order was made against Mr Ajao for £20,000.

Following the Employment Tribunal’s decision at the hearing, Commerzbank AG brought contempt of court proceedings against Mr Ajao. They built upon the findings in the previous hearing, mainly that Mr Ajao had knowingly fabricated his allegations in the Employment Tribunal and tampered with evidence to strengthen his claim.

Decision

The High Court found 12 out of the 13 allegations proven to the criminal standard and that the claims made by Mr Ajao in his Employment Tribunal were fabricated. It also found that the giving of false information was deliberate and included providing false evidence under oath. The High Court decided that the allegations made by Mr Ajao were purposely untrue and were a deliberate attempt to deceive the Tribunal into awarding him damages.

As a result of their findings, the High Court handed Mr Ajao a 20-month prison sentence and was ordered to pay costs of £150,000 to Commerzbank AG.

Appeal

In February 2026, the Court of Appeal allowed an appeal in part following their decision in the earlier hearing. In this hearing, the Court of Appeal upheld the High Court’s previous finding of contempt of court on all but one ground. It found that one allegation against Mr Ajao was unproven but that this was held to be an insignificant matter in comparison to the other serious allegations and consequently made no impact on the sentence.

The Court of Appeal then found that the High Court had used guidelines in reference to assault when the matter in question was contempt of court. Due to this, the Court of Appeal considered again the allegations of contempt. Due to the severity of the contempt, the Court of Appeal determined that 12 months imprisonment was appropriate.

Mr Ajao’s sentence was subsequently reduced from 12 months to 8 months due to mitigating factors. These mitigating factors included a lack of previous convictions, loss of career and the impact on his young children. Mr Ajao showed no remorse for his actions and, given the seriousness of the offence and the severe impact on the accused (including psychological harm), the Court of Appeal decided that 8 months was the shortest sentence they could impose.

Impact

This judgment has a significant impact and sends a very clear message. The manner in which the High Court and Court of Appeal dealt with the case indicates the seriousness with which claimants who deliberately lie and deceive during proceedings are treated.

For employers, it provides protection and demonstrates that courts will hold dishonest claimants accountable for their actions. On a practical side, it highlights the importance of keeping clear and accurate records and following fair internal processes as these enabled the employer in this case to demonstrate that the claimant was fabricating his claims and tampering with evidence. The decision provides reassurance that the Tribunal system cannot be abused by claimants and that employers do not have to accept dishonest claims made during proceedings by claimants.

In summary

The case is a reminder that if employers do the basics well, keep good records, and follow a fair and transparent process, they can defend their position with confidence. If you would like to discuss policies, record keeping, or have any questions about an ongoing claim, contact Louis Howlett on [email protected] or 02380213779 or Taya Watson on [email protected] or 01483 712603.