Commerzbank AG v Ajao Case
Dishonesty in employment tribunal claims is something many employers quietly fear. The Commerzbank AG v Ajao case has cemented that fear in the minds of many business owners. Even the most well-run businesses can find themselves facing allegations that feel exaggerated, misleading, or entirely untrue. It can feel as though employers have very limited recourse against baseless allegations.
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In the UK, employment tribunals are designed to be accessible, low-cost and user-friendly for employees. That is a strength of the system, but it also means that, lying under oath or fabricating evidence has been difficult to challenge in any meaningful way. Employers often felt powerless, even when they were confident the claims against them were deliberately dishonest.
The recent High Court ruling, Commerzbank AG v Ajao, is a timely reminder that dishonest claimants can face criminal and contempt of court sanctions. This was recently highlighted in a LinkedIn post by Samira Cakali, who heads up our employment team.
Here we explore the case in more depth. As well as why it matters, and how we support employers who are navigating the complexities of tribunal litigation.
A Case That Changed Everything - Commerzbank AG v Ajao
In Commerzbank AG v Ajao, an ex-employee brought a range of serious allegations against the bank, including sexual harassment claims, victimisation, and discriminatory behaviour. These claims were fully dismissed by the employment tribunal. That alone is not unusual. What followed, however, is.
Instead of closing the chapter, Commerzbank took the exceptional decision to bring High Court contempt of court proceedings against the employee. This is a bold step. Contempt proceedings are rare. They are high-stakes and require the employer to prove dishonesty to the criminal standard, beyond reasonable doubt.
The bank succeeded.
The High Court found that Mr Ajao had deliberately fabricated his entire story, inventing scenarios, falsifying diary entries, and making false claims against colleagues. The judge described the conduct as a “deliberate and wicked assault on the integrity of colleagues” and an attempt to deceive the tribunal system itself.
The employee’s actions included:
- Inventing sexual harassment claims [LINK - How Do I Prevent Sexual Harassment in the Workplace? | Winston Solicitors], alleging a colleague commented on his underwear, told him she “fancied” him and even attempted to grab him.
- Falsifying his work diary to create a fake paper trail.
- Fabricating offensive insults, which the judge found were invented only after the bank pointed out inconsistencies.
- Exploiting a colleague’s bereavement by constructing a false emotional narrative to justify why he had not reported the alleged harassment earlier.
This was not a misunderstanding. Nor was it misinterpretation. It was not a situation where two parties simply remembered events differently. The High Court found it was a conscious, calculated attempt to mislead the employment tribunal.
Why This Case Matters for UK Employers
This judgment sends a very clear message. Employees who knowingly lie during tribunal proceedings will face serious legal consequences, including fines or imprisonment for contempt of court.
For employers, it provides a legal mechanism to hold dishonest claimants accountable.
When can employers consider contempt proceedings?
In Commerzbank AG v Ajao, High Court confirmed that contempt is a viable option where a claimant has:
- Knowingly made false statements of truth, such as in their ET1 or witness statement.
- Deliberately lied under oath during tribunal proceedings [LINK - Disciplinary investigations and proceedings for employers].
- Fabricated documents or evidence to support their case.
- If the employer can prove dishonesty beyond reasonable doubt, contempt proceedings may be appropriate.
This is not about punishing employees who are mistaken or who interpret events differently. It applies only to cases of deliberate and malicious fabrication.
But Employers Should Not Overreact
It is crucial that employers do not see this case as an invitation to accuse claimants of lying or rush into contempt proceedings. Most tribunal claims, even those employers disagree with, are not malicious. They arise from confusion, emotion, inconsistent recall, or misunderstandings.
Contempt is a nuclear option. It should only be used in exceptional cases.
The ruling provides reassurance that the tribunal system cannot be abused with impunity and that employers do not have to simply “accept it” when they are faced with evidence of intentional deception.
How Does this Affect How We Work with Employers
We act for many SMEs, owner-managed businesses, and organisations across the UK. As Samira noted in her LinkedIn post, one of the most consistent frustrations expressed by employers is the feeling of helplessness when faced with claims they believe are dishonest.
How we support employers navigating dishonesty in tribunal claims
We help employers assess whether suspected dishonesty is likely to meet the “criminal standard” required for contempt. Following this, we gather and preserve evidence and manage the tribunal case strategically, ensuring procedural fairness and strong documentary foundations. All of this helps us to protect the business’ reputation and minimise disruption.
Most importantly, we guide employers through the process with clarity, practicality and care. We ensure that decisions are made for the right reasons, and only with the right evidence.
Why Policies and HR Processes Matter More Than Ever
Even with this ruling, the best protection against dishonesty is having strong HR foundations, including:
- Clear conduct and performance procedures
- Well-drafted contracts and handbooks
- Documented investigations and decision-making
- Consistent disciplinary processes
- Legally compliant record-keeping
- Fair and transparent grievance handling
If your internal processes are weak, you are more vulnerable to claims. Even if those claims are false.
This is where our business employment law products make a significant difference.
How myHR Helps Employers Strengthen Their Defences
Our myHR service gives businesses ongoing access to employment law support, including advice on disciplinary and grievance cases, review and drafting of HR policies, and support with investigations and documentation. myHR offers strategic guidance during tribunal claims, as well as legally compliant templates and guidance notes
When claims arise, myHR clients are already in a stronger position. They don’t just respond — they respond efficiently, consistently and with the right legal support behind them.
Explore myHR and get your policies up to date
The 24-Month HR & Policy Guarantee - A Protective Shield for Employers
Our 24-month HR & Policy Guarantee ensures that your contracts, handbooks, and policies remain compliant for two years. As employment law changes rapidly, this gives employers confidence that their processes are up to date.
With strong policies and legal oversight, your risk of ending up in contested tribunal proceedings is significantly reduced. And if a claim does arise, you have the foundation you need to defend it effectively.
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What We Can Learn from the Commerzbank AG v Ajao Ruling
The Commerzbank AG v Ajao ruling confirms that the tribunal is not a place where dishonesty goes unchallenged. For employers who play by the rules and deal with claims in good faith, the decision brings fairness and accountability.
But the message is also clear = employers must ensure that their own processes, documentation and HR frameworks are robust. With the right support, you can navigate tribunal claims confidently and protect your organisation from those who act in bad faith.
Our expert Business Employment law team is here to help you do exactly that.
If your business is defending an employment tribunal claim or you need support strengthening your HR framework, contact us on 0113 320 5000 or email employment@winstonsolicitors.co.uk.
