False allegations: when claims become contempt

Allegations, including those of workplace harassment, victimisation, and discrimination are serious matters and should always be treated with the utmost seriousness. At the same time, it is important to recognise that false claims can also be harmful, and the courts must address them with equal care

This is an issue recently faced by the High Court where a former employee was judged to be in contempt of court, following his advancement of false allegations and false evidence under oath.

This ruling acts as a cautionary warning for claimants, and provides an opportunity for employers, underscoring the serious consequences of employees presenting falsehoods as fact.

The case: Commerzbank AG v Ajao

This recent case concerned an employee of, and later claimant against, Commerzbank AG (“Commerzbank”). The claimant was employed as a ‘Know Your Client Analyst’ at Commerzbank for just over six months before he was dismissed on account of his conduct, amounting to a loss of trust and confidence by his employer.

The Employment Tribunal

After his dismissal, the claimant brought a number of claims against his ex-employer. These claims included discrimination pertaining to several protected characteristics, harassment, sexual assault, victimisation, bullying, wrongful dismissal and breach of contract.

The Employment Tribunal (“ET”) rejected the claimant’s claims and, in addition, ordered him to pay £20,000 towards his ex-employer’s legal fees, underlining the high price he had to pay for bringing unsubstantiated claims. Unfortunately for the claimant, the repercussions did not stop there.

Contempt proceedings

The Civil Procedure Rules, which govern civil court processes, confirm that:

“Proceedings for contempt of court may be brought against a person who makes or causes to be made a false statement in a document, prepared in anticipation of or during proceedings and verified by a statement of truth, without an honest belief in its truth”.

This is exactly what Commerzbank alleged in its proceedings against the claimant. It was contended that the claimant had deliberately falsified his allegations and manufactured evidence and had compounded the issue by repeating and reinforcing those falsehoods before the ET. According to Commerzbank, this was not merely a case of an unproven claim but an attempt to divert justice.

In its judgment, the High Court found the claimant to have been in ‘serious’ contempt of court in his making false statements of truth. Indeed, the claimant’s evidence was found to contain ‘discrepancies, inconsistencies and impossibilities’ that simply could not be believed.

Further, in giving false evidence under oath, it was decided that the claimant had both interfered with the administration of justice as well as the mental health of his colleagues. As for the latter, the High Court was particularly disturbed by the claimant’s “wickedness” towards his colleague (who also appeared as a respondent in the ET proceedings) during an especially emotionally trying period of her life.

As a consequence of the above, the claimant was jailed for 20 months.

Implications for employers

Although proceedings of this kind, and indeed their success, are rare, this case demonstrates that they are not beyond possibility. Of particular significance is the emphasis the High Court places on false evidence and the serious consequences that may result therefrom for any party involved in employment proceedings.

Moreover, this case stresses the importance of keeping up-to-date and accurate records as, owing to the quality of the counterevidence put forth by Commerzbank, they were able to not only disprove the claimant’s allegations, but secure a costs order and duly punish the claimant for his wrongdoing and harm.

If you have any questions about the handling of employment claims including appropriately responding to allegations, please do contact a member of our Employment team.