Question Tag: Employee Rights

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AlRabico Chemists is the only pharmaceuticals in the northern region and Mr. Oppong is one of the key Pharmacists who had worked with the company for 18 years and has special skills which can only be used at AlRabico. His net monthly salary was GH¢15,000 and he always goes to Kumasi to spend the weekends with his family. On 14th July 2016, during a staff meeting, the new head Pharmacist Alhaji Mahmoud announced Mr. Oppong’s dismissal with immediate effect for insubordination. Mr. Oppong is deeply hurt and embarrassed by the action of Alhaji Mahmoud.

Required:
i) Explain with reasons the type of service contract Mr. Oppong’s work falls. (5 marks)

ii) What remedies are available for Mr. Oppong?

(2 marks)

ci)

  • An employee-employer contract is a contract of service.
  • Permanent employees have a contract of service with their employer. By definition, if a worker has a contract of service with an organization, they are an employee.
  • The worker is controlled by their employer—they must perform the tasks they are instructed to by a line manager according to their job description.
  • The worker is expected to work at a specific place during specific hours on specific days (even flexi-time has core hours).
  • The worker must present themselves for work and cannot send someone else as a substitute.
  • Employees have statutory rights to holiday pay, sick pay, maternity and paternity rights, and redundancy payments.
  • Employees have statutory rights regarding how they can be asked to leave their employment. (Any 5 points for 5 marks)

cii)

  • To make an order for reinstatement.
  • To make an order for re-engagement.
  • To make an order for compensation.        (Any 2 points for 2 marks)

b) You are confronted with a case where two employees’ appointments had been terminated in a private company. One of the employees was sacked for participating in labour agitations against the employer, having worked for 2 months under an oral engagement by the company.

The other employee’s appointment in the same company was terminated because the employee absented himself from work for a day since he was severely injured, and his hospital attendance was duly certified by a recognized medical practitioner.

Required:
i) State TWO orders that the Labour Commission may give to the private company in favor of the affected employees/workers. (6 marks)

ii) Will both employees have the same cause of action? (2 marks)

i) The Labour Commission may issue the following orders under Section 64 of the Labour Act, 2003 ACT 651:

  • The employer may be ordered to reinstate the employee from the date of the termination of the employment.
  • The employer may be ordered to re-employ the employee in the work for which the worker was employed before the termination.
  • Re-employ the employee in any other reasonably suitable work on the same terms and conditions enjoyed by the worker before the termination.
  • The employer may be ordered to pay compensation to the employee.
    (Any 2 points for 6 marks)

ii) Both employees will have the same cause of action as they acted within their rights. (2 marks)

Arko Kumi was contracted for the delivery of chippings to Ashville Estates. The contract identified him as an “independent contractor” with agreed wages and expenses. Arko Kumi was to use his own vehicle, yet with a requirement that the vehicle be sprayed in the company colors of Ashville Estates. He was to drive the vehicle himself but under compliance with certain company rules including, the nature of vehicle repairs and maintenance.

Required:
i) Describe the type of employment Arko Kumi is engaged in. (2 marks)
ii) State TWO (2) terms and essential clauses that can be used to differentiate the various types of employment. (2 marks)
iii) Explain TWO (2) rights and duties of both the employer and the employee. (6 marks)

i) Type of Employment: Although the contract took the form of Arko Kumi being under the control of a company because his vehicle was sprayed in company colors, and he had to comply with certain company rules, the fact that he was to use his own vehicle does not place him completely under the control of the company. Mr. Arko Kumi is therefore, an independent contractor. (2 marks)

ii) Terms and Clauses to Differentiate Types of Employment:

  • Contract of Service:
    The worker (employee) is under the control of the employer: the employer tells him what to do, how to do it, and when to do it; and/or the skill of the worker/employee is an integral part of the business or work.
  • Contract for Services:
    The worker works on his own account; he is in his own person in business.

Clauses to Differentiate the Type of Employment:

  • Contract of Service:
    In a Contract of Service, (i) the income tax of the worker is deducted at source, (ii) social security deductions are made at source, (iii) the worker is entitled to benefits such as sick leave, sick pay, medical refunds, maternity leave, etc., (iv) the worker can make the employer vicariously liable for his torts, (v) the worker may have the privilege of employees’ shares in a company limited by shares, and (vi) tools are provided for work with possible allowances in their absence.
  • Contract for Services:
    The worker (i) pays his own taxes as income tax and VAT, (ii) is responsible for payment of his own social security, (iii) is responsible for his own torts, and (iv) procures his own tools for work. (2 marks)

iii) Rights and Duties of Both Employer and Employee:

Rights of the Employer:

  • Employ a worker, discipline, transfer, promote, and terminate the employment of the worker.
  • Formulate the policies, execute plans and programs to set targets.
  • Modify, extend, or cease operations.
  • Determine the type of products to make or sell and the prices of its goods and services.

Duties of the Employer:

  • Provide work and appropriate raw materials, machinery, equipment, and tools.
  • Pay the agreed remuneration at the time and place agreed on in the contract of employment or collective agreement or by custom without a deduction except as permitted by law or agreed between the employer and the worker.
  • Take practical steps to ensure that the worker is free from risk of personal injury or damage to health during and in the course of the worker’s employment or while lawfully on the employer’s premises.
  • Develop the human resources by way of training and retraining of the workers.
  • Provide and ensure the operation of an adequate procedure for disciplining the workers.
  • Furnish the worker with a copy of the worker’s contract of employment.
  • Keep open the channels of communication with the workers.
  • Protect the interests of the workers.

Rights of the Workers (Employee):

  • Work under satisfactory, safe, and healthy conditions.
  • Receive equal pay for equal work without distinction of any kind.
  • Have rest, leisure, and reasonable limitation of working hours and a period of holiday with pay as well as remuneration for public holidays.
  • Form or join a trade union.
  • Be trained and retrained for the development of skills.
  • Receive information relevant to the work of the worker.

Duties of Workers (Employees):

  • Work conscientiously in the lawfully chosen occupation.
  • Report to work regularly and punctually.
  • Enhance productivity.
  • Exercise due care in the execution of assigned work.
  • Obey lawful instructions regarding the organization and execution of the worker’s work.
  • Take reasonable care for the safety and health of fellow workers.
  • Protect the interests of the employer.
  • Take proper care of the property of the employer entrusted to the worker or under the immediate control of the worker.             (6 marks)

a) Sections 10 and 11 of the Labour Act 2003, Act 651 explicitly state the rights and duties of employers and employees to facilitate a harmonious working relationship between the two parties.

Required:
State FIVE (5) duties of both the employers and employees as stated in the Labour Act.

Duties of Employers:

  1. Provide Work and Necessary Tools:
    Employers must provide work and appropriate raw materials, machinery, equipment, and tools required for the job.
    (1 mark)
  2. Pay Remuneration:
    Employers are required to pay the agreed remuneration at the time and place agreed upon in the contract of employment or collective agreement, without unauthorized deductions.
    (1 mark)
  3. Ensure Safety and Health:
    Employers must take practicable steps to ensure that workers are free from risk of personal injury or damage to health during and in the course of their employment.
    (1 mark)
  4. Develop Human Resources:
    Employers should develop the human resources of the organization by providing training and retraining for workers.
    (1 mark)
  5. Maintain Disciplinary Procedures:
    Employers must provide and ensure the operation of an adequate procedure for disciplining workers.
    (1 mark)

Duties of Employees:

  1. Work Conscientiously:
    Employees are expected to work diligently in their lawfully chosen occupation.
    (1 mark)
  2. Regular and Punctual Attendance:
    Employees must report for work regularly and punctually.
    (1 mark)
  3. Enhance Productivity:
    Employees are required to contribute to enhancing the productivity of the organization.
    (1 mark)
  4. Exercise Due Care:
    Employees must exercise due care in the execution of their assigned work.
    (1 mark)
  5. Obey Lawful Instructions:
    Employees are obligated to obey lawful instructions regarding the organization and execution of their work.
    (1 mark)