Question Tag: Labor Law

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State any THREE instances in which an employee may be entitled to redundancy benefits. (3 Marks)

Redundancy benefits may be payable to an employee in any of the following instances:

  1. Where the number of employees is more than the available jobs, and the employer has agreed to the payment with the employees’ trade union.
  2. The employer has ceased or intends to cease to carry on the business for which the employee was employed.
  3. The employer has ceased, or intends to cease, to carry on the business in the place where the employee was employed.
  4. If there is provision for redundancy payment to employees in the conditions of service and the prescribed conditions are satisfied​

a) Asanka Pharmaceutical Company Limited manufactures several types of drugs, and which drugs are supplied to many chemical stores in Kojokrom. The company is located very close to a gutter which is also used by the residents as a refuse dump. This gutter is never desilted resulting in the fact that a strong odour hangs around the premises of the company. The equipment used in manufacturing the drugs are not only obsolete but also expose the workers of the company to injuries. The workers of the company have complained about the conditions under which they work, but the management of the company pays deaf ears to these complaints. Apart from the fact that the equipment used to manufacture the drugs created a problem for the workers, the company did not provide the necessary safety working gears to the workers.

When the complaints of the workers were not heeded for necessary remedies to be provided, they embarked on a sit-down strike. The management, therefore, summarily dismissed the leadership of the workers, saying that the leaders could not tell the management what to do in the running of the affairs of the company.

Required: Explain whether the workers of the Asanka Pharmaceutical Company Limited were justified in embarking on the sit-down strike action. (10 marks)

Under the Labour Act 2003 Act 651, it is the duty of the employer to provide satisfactory safe and healthy conditions.

  • Location of the company very close to a big gutter/undesilted gutter that emitted bad odour.
  • The equipment was obsolete, exposing the workers to injuries.
  • The workers were not provided with protective clothing.
  • Their complaints were ignored.

Whether the workers were justified refers to Section 159 below:

  • For a strike to be legal, the Law under Section 159 stipulates two circumstances under which legal strikes can occur.
  • The first is where the parties fail to agree to refer the dispute to voluntary arbitration, and where the dispute remains unresolved at the end of the arbitration process, either party intending to take strike action or institute lockout shall give written notice of this to the other party and the commission, within seven days after failure to agree to refer the dispute to voluntary arbitration or the termination of the proceedings.
  • This means that the parties would have gone through negotiation and mediation, yet they failed to resolve the dispute and one party to the dispute does not want the matter to be referred to voluntary arbitration, or the parties are at voluntary arbitration, but the conduct of one party is stalling the process.
  • It is under such a circumstance that a party intending to strike or institute lockout must give a written notice to the other party and the National Labour Commission. However, what has become the norm by some workers, workers’ organizations, and associations is for them to issue press releases or press statements of their intention to embark on a strike. In other instances, the NLC is only copied notice of strike. Such acts contravene the provisions for embarking on a strike under the law.
  • Again, such acts prevent the commission from pro-actively intervening to have the issue resolved. Very often also, the strike action started before the commission was informed. Furthermore, the practice where workers write to state that if no action is taken within a specific period “we would advise ourselves” is not appropriate because advising “oneself is not a notice “to the commission. Where a party is aggrieved and intends to take action, that party should state clearly the reasons for dissatisfaction and officially report to the commission for redress.
  • A notice of strike, therefore, must be properly served as required by the law. It is important to note that today’s practice of industrial relations must be based on transparency, good faith, and adherence to the Labour Act 2003, (Act 651).
  • The parties failed to agree—refer the dispute to voluntary arbitration.

(8 marks)

2 Marks for bullet 2 otherwise 1 ½ Marks for each point. AND a total of 8 Marks here.

 

Kojo Mensah was employed by A&B Co. Ltd as a Waste Management technician. Before his employment, Kojo Mensah presented a certificate to evidence the fact that he was very qualified for the job as a Waste Management technician. One and a half years into his employment, Kojo Mensah’s subordinates petitioned the Management of A&B Co. Ltd that Kojo Mensah was not exhibiting a high sense of professionalism in his position as a Waste Management technician, as several complaints were coming from the clients of A&B Co Ltd to the effect that the services being rendered by the Company were unsatisfactory, adding that Kojo Mensah, as the Officer in charge of that unit, could not supervise the operations of the said unit. It later came to light after the company conducted further due diligence on Kojo Mensah’s academic and professional background, that the certificate he submitted for his employment was a forged one. Prior to the submission of the Petition against him, Kojo Mensah had on several occasions been queried by Management for abandoning his duty post and also getting very drunk during working hours. Without giving Kojo Mensah an opportunity to respond to the petition, the Management of A&B Co. Ltd did not dismiss Kojo Mensah but terminated his appointment from the Company on these grounds.

a) Explain whether A&B Co. Ltd was justified in terminating the appointment of Kojo Mensah.

(10 marks)

b) Explain whether Kojo Mensah has any chance of success in seeking redress. (5 marks)

c) Differentiate between dismissal of one’s appointment and termination of one’s appointment. (5 marks)

a)

  • There is a contractual relationship between Kojo Mensah and A&B Co. Ltd.
  • The scenario indicates gross misconduct on the part of Kojo Mensah, including submitting a forged certificate, abandoning his duty post, and getting drunk during working hours.
  • Given these actions, the company was justified in terminating Kojo Mensah’s appointment on disciplinary grounds for gross misconduct.

(10 marks)

b)

  • Kojo Mensah may seek redress in court on the grounds that the company did not give him a hearing before terminating his appointment.
  • The lack of a hearing violates the principles of natural justice, which require that an employee be given the opportunity to respond to allegations before disciplinary action is taken.
  • Kojo Mensah has a chance of success in court, where he could sue for damages for wrongful termination, but he cannot sue for reinstatement due to the non-servitude nature of employment contracts.

(5 marks)

c)
Dismissal:

  • No benefits are payable.
  • No notice or salary in lieu of notice is required.
  • Dismissal necessarily implies disciplinary action.

Termination:

  • The employee is entitled to accrued benefits.
  • Termination requires notice or salary in lieu of notice.
  • Termination may be either disciplinary or non-disciplinary.

(3 marks for each category for a total of 5 marks)