Question Tag: Employment Rights

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ABA Venture was set up recently and John is an independent electrical contractor working for ABA Ventures for the past 3 months under a contract that requires him to ensure that all electrical facilities are well maintained. Abena is a fresh graduate who has also completed level one of the ICAG professional programme and has been given a one-year contract as a Cashier of ABA Ventures. Your firm is designing the conditions of service for ABA Ventures.

i) List the FOUR (4) rights of employees.
(4 marks)

ii) Indicate whether ABA Ventures will have obligations to pay Social Security on behalf of John and Abena who are both working at ABA.
(6 marks)

 

i) Rights of Employees:

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

(4 points for 4 marks)

ii) Obligation to Pay Social Security:

Abena’s Engagement:

  • ABA Ventures has an obligation to pay Abena’s social security because she is an employee by her working situation. Abena’s employment constitutes a contract of service, making her eligible for social security contributions. The employer controls her work, regular salaries are paid, income taxes are deducted at the source, and social security contributions are made on her behalf.

John’s Engagement:

  • John’s engagement is under a contract for services, meaning he is an independent contractor. In this situation, John is responsible for his own social security payments, as well as other tax obligations. He is not an employee, thus ABA Ventures is not obliged to pay social security on his behalf.

(3 marks for Abena’s engagement, 3 marks for John’s engagement = 6 marks)

Eric Afful was employed as the Chief Operations Officer of Deews Construction Company, in 2003. In 2015, the company undertook a major restructuring resulting in re-assignment of Eric to the role of Building Inspector. In this new role, his signing authorities were withdrawn and all subordinate staff transferred out of his department. His salary was reduced drastically and he was informed by the MD that the company’s budget would not be able to meet his salary. When he complained, he was advised to keep quiet or have his appointment terminated.

Required:

a) Comment on the right of the employer in the case. (5 marks)

b) On what THREE (3) grounds can Eric’s appointment be terminated? (9 marks)

c) What TWO (2) remedies will be available to Eric in the event of unfair termination? (6 marks)

 

a)

  • The rights of the employer include the right to employ, discipline, transfer, promote, and terminate the employment of the worker as per Section 8(a) of the Labour Act, 2003 (Act 651).
  • It is not within the right of the employer to reduce the salary of the employee/worker.

b)

  • By mutual agreement between the employer and the worker.
  • By the worker on grounds of ill-treatment or sexual harassment.
  • By the employer if the worker is found on medical examination to be unfit for employment.

c)

  • Re-instatement from the date of the termination of employment.
  • Re-employment of the worker in the work for which the worker was employed before the termination.

 

 

 

a) In a negotiation meeting between the Ministry for Employment, representatives of the Mineworkers Union, and Management of Anglosilver Ltd, the meeting ended in a deadlock. The following day, the workers were notified that the company had been closed down. After some discussions, the workers were asked to sign declarations of confidence in the management as a precondition for re-engagement. They did so but were rather issued with letters of rejection.

Required:
i) Identify THREE (3) grounds on which termination of employment will be considered unfair under the Labour Act, 1963 (Act 651).
(6 marks)

ii) Explain TWO (2) remedies available to a worker who was issued with a letter of rejection and is alleging unfair termination.
(4 marks)

i) Grounds for Unfair Termination under the Labour Act:
A worker’s employment is terminated unfairly if the only reason for the termination is:

  • That the worker has joined, intends to join, or has ceased to be a member of a trade union or intends to take part in the activities of a trade union.
  • That the worker seeks office as, or is acting or has acted in the capacity of, a workers’ representative.
  • That the worker has filed a complaint or participated in proceedings against the employer involving an alleged violation of this Act or any other enactment.
  • The worker’s gender, race, color, ethnicity, origin, religion, creed, social, political, or economic status.
  • In the case of a woman worker, due to the pregnancy of the worker or the absence of the worker from work during maternity leave.
  • In the case of a worker with a disability, due to the worker’s disability.
  • That the worker is temporarily ill or injured, and this is certified by a recognized medical practitioner.
  • That the worker does not possess the current level of qualification required in relation to the work for which the worker was employed, which is different from the level of qualification required at the commencement of his or her employment.
  • That the worker refused or indicated an intention to refuse to do any work normally done by a worker who at the time was taking part in a lawful strike unless the work is necessary to prevent actual danger to life, personal safety, or health, or the maintenance of plant and equipment.

(Any 3 points @ 2 marks each = 6 marks)

ii) Remedies Available to a Worker Alleging Unfair Termination:
A worker who claims that the employment of the worker has been unfairly terminated by the worker’s employer may present a complaint to the Commission.

If upon investigation of the complaint, the Commission finds that the termination of employment is unfair, it may:

  • Order the employer to re-instate the worker from the date of the termination of employment.
  • Order the employer to re-employ the worker, either in the work for which the worker was employed before the termination or in other reasonably suitable work on the same terms and conditions enjoyed by the worker before the termination.
  • Order the employer to pay compensation to the worker.

(Any 2 points @ 2 marks each = 4 marks)