Labour - Redundancy – Master and
servant– Negotiation
of
package
– Workers
Union
- Entitlements
and liabilities
– Enforcement
of the award -
Civil Procedure -
Leave of Court to appeal -
Whether or not
the appeal is a nullity, having
been filed without leave of the
Court of Appeal, or in the
alternative, the Special leave
of this Court, the case having
commenced at the National Labour
Commission, a tribunal lower
than the High Court
- Whether or not
the grounds of appeal, except
ground e, are argumentative and
sin against Rule 6(4) and (5) of
the Supreme Court Rules, 1996 (C.I
16). (As amended by C.I 24,
1999)
-
Article 131 of the 1992
Constitution
-
Section 4 of the Court’s Act,
1993 (Act 459) - Section 65
,172
of the Labour Act, 2003 (Act
651)
HEAD NOTES
By
letters dated 27th
August, 2015, the employment
relationship of two workers of
the Appellant bank was severed.
The letter, although addressed
to the two workers individually,
had the same content, notifying
them
that owing to the
significant changes that have
occurred in the demands, skills
and competencies required for
the delivery of its current
objectives, the bank is no
longer able to deploy you in any
role
the “redundant workers” were
members of the Union of
Industry, Commerce and Finance
Workers Union (hereinafter
called “the Complainant”). Being
the labour representative of the
affected employees made a formal
complaint to the Respondent
after several attempts by them
to negotiate the redundancy
package with the Appellant had
failed. On 12th May,
2016, the Respondent wrote to
the Appellant for response to
the Complaint and the Appellant
duly filed its response .
the
commission decides that each
complainant would be paid three
(3) months’ salary for each year
of service, The
Respondent subsequently applied
to the High Court to enforce its
decision pursuant to Section 172
of the Labour Act, 2003 (Act
651). The Appellant opposed the
application for an order for the
enforcement on the ground, among
others, that the matter in
relation to which the Respondent
made its determination did not
in fact and in law constitute a
dispute concerning redundancy
pay The High Court dismissed the
application by the Respondent
for the enforcement of its
decision against the Appellant,
Dissatisfied the Respondent
appealed to the Court of Appeal
who by a unanimous decision
upheld the appeal by the
Respondent The Appellant,
dissatisfied with the judgment
of the Court of Appeal, has
brought this present appeal,
HELD
The Respondent, being seized
with the statutory jurisdiction
under section 65(5) of Act 651
properly adjudicated on the
quantum of Redundancy pay as
well as the terms and conditions
of payment including interest.
The final ground of Appeal of
the Appellant fails and same is
also dismissed in limine. We
therefore affirm the decision of
the Court of Appeal and order
that Appellant pays the
entitlements of the two
ex-employees in terms of the
relief granted by the Court of
Appeal. That is to say: The
Respondent shall pay all the
monthly net salaries of the two
workers from 1st September, 2015
to date of this decision and
also pay their SSNIT
contribution for the workers The
Respondent shall pay to the
workers;
GH¢
2,000 as golden handshake ,GH¢
3,000 as repatriating ¢ 5,000 as
bonus, That the Respondent shall
pay to the two workers three
months gross salary for every
year of service from the date of
their respective appointments of
the two workers to the date of
the decision. The Respondent
shall pay to the two workers any
accrued benefits such as
provident fund (however called)
and accrued leave. That all the
payment ordered herein shall
begin from 1st day of November,
2016 to date of final payment.
We also affirm the consequential
order given by the Court of
Appeal that all orders hereby
made or affirmed shall be
complied with within a month
from today.
STATUTES REFERRED TO IN JUDGMENT
1992 Constitution
Supreme Court Rules, 1996 (C.I
16).
Supreme Court Amended Rules 1999
(C.I 24,)
Court’s Act, 1993 (Act 459)
Labour Act, 2003 (Act 651)
Labour Decree, 1967 (NLCD 157),
Interpretation Act, 2009 (ACT
792)s
CASES REFERRED TO IN JUDGMENT
Gihoc Refrigeration & Household
Products Ltd. (No. 1) v Hanna
Assi (No. 1) [2007-2008] 1 SCGLR
4.
Network Computer Systems (NCS)
Ltd vrs Intel Sat Global Sales
and Marketing (2012) 1 SCGLR
218,
Martin Alamisi Amidu vrs. The
SAttorney General & 2 Ors,
Unreported, Suit Number,
71/15/12 dated 1th june 2013,
Republic vr.s High Court,
Kumasi, Ex parte Bank of Ghana &
Ors (Sefa & Asiedu Interested
Parties) (No.1); Republic v.
High Court Kumasi, Ex parte
Banak of Ghana & Ors (Gyanfi &
Others Interested
Parties)(No.1)(Consolidated)(2013-
2014) 1 SCGLR 477.
krobo vrs. amosa[ suit no/;
j4,56,2014, unreported, 21st
april, 2016,
Republic v. High Court Accra
(Fast Track Division) Ex parte
Ghana Lotto Operators
Association (National Lottory
Authority, Interested Party)
2009 SCGLR 372,
Okore alias Owusu & Anorther
vrs. The Repuclic 1974 2GLR, 272
Achiampong vrs. Obaapayin Aba
Yaa (Subst Foraraba Adamwoma) &
Ors Suit No. j4/12/2018[2020] 5th
February, 2020
Baiden
v. graphic corporation,
[2005-2006] scglr 154
Kobi v Ghana Manganese Co Ltd
[2007-2008] 2 SCGLR 771
Republic v High Court, Accra; Ex
parte Eastwood Ltd and Others
[1995-96] 1 GLR 689
Timitimi v Amabebe (1953) 14
WACA 374
Republic v. Akrokere
Sub-Traditional Council; Ex-parte
Carr and Others [1980] GLR 925
Takyi v Ghassoub
[87-88] 2 GLR sc
Ababio v. The Republic [1972] 1
GLR 347
GTP v. Ankujeah [2000] 2 GLR 473
Abbey & Others v. Antwi [2010]
SCGLR 17
Tuakwa v Bosom [2001-2002] SCGLR
61
Djin v Musah Baako[2007-2008]
SCGLR 686
Agyenim-Boateng vs. Ofori &Yeboah
(2010) SCGLR 861
Atuguba and Associates vrs
Scipion Capital (UK) Ltd. and
Another Suit No.J4/04/2019 3rd
April, 2019
Brown v Quashigah [2003-2004] 2
SCGLR 930
In Re: Suhyen Stool; Wiredu &
Obenwaa v Agyei & Ors
[2005-2006] SCGLR 424
Asamoah v Marfo [2011] 2 SCGLR
832
Fenu & Ors v The
Attorney-General & Ors [2019]
130 GMJ 179
BOOKS REFERRED TO IN JUDGMENT
Halsbury’s Laws of England, 4th
Edition, 2000, Vol. 16
DELIVERING THE LEADING JUDGMENT
KULENDI, JSC:-
COUNSEL
EFFIBA AMIHERE FOR THE
APPLICANT/APPELLANT/RESPONDENT.
ISMAEL ANDANI ABDULAI FOR THE
REPONDENT/RESPONDENT/APPELLANT
---------------------------------------------------------------------------------------------------------------------------------------------------------
JUDGMENT
---------------------------------------------------------------------------------------------------------------------------------------------------------
KULENDI, JSC:-
On the 25th day of
March 2020, the Appellant herein
filed a Notice of Appeal,
against the judgment of the
Court of Appeal which judgment
was delivered on 14th
February, 2019. In the said
judgment, the Court of Appeal
upheld an appeal by the National
Labour Commission (the
Respondent herein) against the
refusal of the High Court to
grant an application for an
order to enforce the decision of
the Respondent.
BACKGROUND:
The background to the
proceedings that has brought
about the instant appeal can be
summarized as follows:
By letters dated 27th
August, 2015, the employment
relationship of two workers of
the Appellant bank was severed.
The letter, although addressed
to the two workers individually,
had the same content.
The letter, which may be found
at page 10 of the Record of
Proceedings reads in part as
follows:
“REDUNDANCY”
This comes to inform you
that
owing to the significant changes
that have occurred in the
demands, skills and competencies
required for the delivery of its
current objectives, the bank is
no longer able to deploy you in
any role.
You are accordingly declared
redundant
with effect from September, 1st
2015.
In accordance with article 65 of
the
Labour Act, 2003 (Act 651)
the bank will submit
proposals for the
negotiation of a redundancy
package
with the
Union of Industry Commerce
and Finance Workers (UNICOF)
Your statement of accounts,
indicating your
entitlements and liabilities
will be communicated to you in
due course, together with a
redundancy package resulting
from the negotiations.
We thank you for the services
rendered to the Bank during the
period of your employment and
wish you success in your future
endeavors.”
The “redundant workers” were
members of the Union of
Industry, Commerce and Finance
Workers Union (hereinafter
called “the Complainant”).
On 21st April, 2016,
the Complainant,
being the
labour representative of the
affected employees made a formal
complaint to the Respondent
after several attempts by them
to negotiate the redundancy
package with the Appellant had
failed. The complaint
submitted to the Respondent
which may be found at page 8 of
the Record of Proceedings.
On 12th May, 2016,
the Respondent wrote to the
Appellant for response to the
Complaint and the Appellant duly
filed its response with the
Respondent on 27th
June, 2016.
This may be found at page 17 of
the Record of Proceedings. It
reads in part as follows:
“1.0 REDUNDANCY-FACTS OF THE
MATTER
We wish to confirm that Messrs.
John Adoe and Bernard
Bright-Davies were, on
September, 1st 2015
declared redundant and formally
communicated to by the Bank. …
Subsequent to this, the
redundancy was effected and
UNICOF in a letter dated
October, 5th 2015
presented proposals for a
redundancy package to be
negotiated on behalf of the two
named redundant persons. The
proposals were duly received by
the Bank and several informal
discussions held with
representatives of UNICOF to
agree on an appropriate
timetable to carry out
negotiations.
We wish to reiterate, as we have
done on the many occasions that
we have met informally with
UNICOF’s representatives, that
this Bank is committed to
honouring its obligation in the
redundancy decision. The delay
in doing so has been due to
circumstances beyond our
control, which circumstances we
are working assiduously to bring
under control to enable us
resume negotiations on the
redundancy package and finally
honour our obligations to the
two named individuals.
We further wish to render
sincere apologies to the
Commission, UNICOF and the two
individuals involved for this
delay and give our firm
commitment to have this resolved
as soon as possible.
“Having regard to all of the
above, we wish to state our
position on each of the reliefs
sought by UNICOF as follows:
1.
Negotiations on redundancy
package
We commit to having this done
within the shortest possible
time, but are unable to indicate
a specific time frame in view of
the fact that our Board of
directors whose consent is
required in obtaining approval
for the negotiated package
reside outside the country.
Concluding decisions with them
outside of a formally convened
meeting would therefore take a
little more time than it would
with those resident in Ghana…”
At a hearing on 28th
September, 2016, the Appellant
and the Complainant appeared
before the Respondent and the
following, contained at page 27
of the Record of Proceedings,
ensued:
“COMMISSION: Let us hear you
COMPLAINANT: just this morning,
the Respondent approached us for
an enterprise level negotiation.
However, we have some issues
making it difficult for us to
oblige them in that respect.
COMMISSION: If they have
indicated a willingness to meet
to resolve the matter, then what
is the difficulty?
COMPLAINANT: The issue has been
pending for a while now.
COMMISSION: Why are you here?
COMPLAINANT: Our Clients were
declared redundant and for over
a year, attempts to negotiate
their redundancy package have
proved futile hence our decision
to petition you. Attempts were
made through writing yet no
response came from the Bank. In
respect of one of the
Complainants, (Bernard) he took
a mortgage while in employment
but following the redundancy,
the repayments have not been
forthwith and the bank is on the
verge of repossessing the house.
COMMISSION: what is your
response?
COUNSEL FOR RESPONDENT: The main
issue is because the claimants
brought us here for their
redundancy package…
COMMISSION: Have you declared
them redundant?
COUNSEL FOR THE RESPONDENT: Yes
COMMISSION: Why have you not
paid them?
COUNSEL FOR RESPONDENT: We have
a few internal issues which we
discussed with the union. We
admit that is has taken long but
we begged that they give us some
time to resolve the internal so
we can conclude on everything.
COMMISSION: is the package not
worked out before the decision
was taken to make them
redundant?
RESPONDENT: there were a few
internal issues.
COMMISSION: Are you ready to pay
them their package?
RESPONDENT: Yes but we are yet
to negotiate the package yet
(sic) even though the union made
a proposal to management.
COMMISSION: How many years did
you work?
COMPLAINANT: 19 years and 16
years respectively
COMMISSION: Begin and conclude
negotiations in one week.”
By a letter dated 5th
October 2016, the Appellant
wrote to inform the Respondent
of the outcome of negotiations
over the Redundancy package. The
letter read in part as follows:
“…You will recall that at the
previous session, the bank was
given a week to confirm the
proposed package for Bernard
Davies and John Adoe. We have
worked on proposal for which
Executive Management is yet to
approve. Unfortunately our
Managing Director had been
unavailable to approve the
proposal. We are hereby
requesting an extension of time
to Friday 7th October
2016 to enable us submit our
proposal.”
The Complainant and Appellant
thereafter met the Respondent on
26th October, 2016
and the following, which can be
found at page 32 of the Record
of Proceedings transpired at the
said meeting:
“Commission: Unicof, what is the
matter
Complainant:
The last time we appeared, we
came with an issue of redundancy
payment. Management declared our
Union members redundant from
September, 2015. We brought the
matter before the commission and
directed that management and the
Union meet to resolve the
matter. We reported within one
week and had two standing
negotiating meetings, the last
one we had was two weeks ago
where management asked for some
time to consult the Board and
return to us.
Virtually we agree on all the
matters with exception of the
multiplier for the severance
award: we were at 4 months for
each year served while
management was at 1 month. We
were open for discussions so
they went to discuss with the
Board and came back with the
same one month for each year. We
felt that it is a ploy to delay
us further Therefore we entreat
the Commission to take a look at
the matter and have a
determination.
Commission:
Counsel, your response
Representative for Respondent:
As he rightly said, we met and
submitted their proposal to the
Board but my Lord, the Board
has settled on one month for
each year served and they are
not ready to go further.
Commission:
And. they are also not prepared
to accept the one month so,
there is a deadlock. So, the
Commission would determine the
matter. Have you ever declared
some workers redundant?
Representative for Respondent:
I don’t have that information.
Commission.
In addition to what has been
agreed upon between the Union
and Management during the
negotiations, the Commission
decides that, each of the
complainants would be paid
redundancy pay of three months
for each year of service. Thank
you very much for coming, you
would receive that in writing if
you are not happy you can go to
Court.
Conclusion
We would give our ruling in this
matter. In addition to whatever
has been agreed upon,
the
commission decides that each
complainant would be paid three
(3) months’ salary for each year
of service.”
The Respondent subsequently
applied to the High Court to
enforce its decision pursuant to
Section 172 of the Labour Act,
2003 (Act 651). The Appellant
opposed the application for an
order for the enforcement on the
ground, among others, that the
matter in relation to which the
Respondent made its
determination did not in fact
and in law constitute a dispute
concerning redundancy pay
and thus
section 65 of the Labour
Act,2003 (Act 651) was not
applicable.
The High Court dismissed the
application by the Respondent
for the enforcement of its
decision against the Appellant.
In delivering its ruling, the
learned Justice of the High
Court held at page 53 of the
Record of Proceedings as
follows:
“From the affidavit evidence
before me, was there redundancy?
The conditions precedent for
Redundancy have not been proven.
The Applicant thus erred in
deciding the matter under
section 65 of Act 651 even
though the Respondent submitted
itself to it. The decision
cannot be justifiably enforced
in law. I refer to holding 3 of
GIHOC
REFRIGERATION & HOUSEHOLD
PRODUCTS LTD. (NO. 1) V HANNA
ASSI (NO. 1)[2007-2008] 1 SCGLR
4.
Accordingly, the Application is
refused with not order as to
costs.”
Dissatisfied with the above
ruling of the High Court, the
Respondent appealed to the Court
of Appeal
per a Notice of Appeal filed on
2nd June, 2017 and on
grounds which may be found at
page 55 of the Record of
Proceedings.
The Court of Appeal in
a
unanimous decision upheld the
appeal by the Respondent,
holding at page 122 of the
Record of Proceedings as
follows:
“We will uphold the appeal in
its entirety. As sought for by
the appellant in its notice of
appeal we hereby reverse the
judgment of the lower Court and
order the respondent to pay the
entitlements of the two
ex-employees in terms of the
relief claimed by the appellant
at the trial Court, that is to
say:
1.
The respondent shall pay all the
monthly net salaries of the two
workers from 1st
September, 2015 to date of this
decision and also pay their
SSNIT contribution for the
workers;
2.
The Respondent shall pay to the
workers;
a.
GH¢ 2,000 as golden handshake
b.
GH¢ 3,000 as repatriation
c.
GH¢ 5,000 as bonus
3.
That the Respondent shall pay to
the two workers three months
gross salary for every year of
service from the date of their
respective appointments of the
two workers to the date of the
decision.
4.
The Respondent shall pay to the
two workers any accrued benefits
such as provident fund (however
called) and accrued leave.
5.
That all the payment ordered
herein shall begin attracting
interest at the commercial bank
rate from 1st day of
November, 2016 to date of final
payment.
As a consequential order, all
orders hereby made shall be
complied with within a month
from today.”
The Appellant, dissatisfied with
the judgment of the Court of
Appeal, has brought this present
appeal.
GROUNDS OF APPEAL
From the Notice of Appeal filed
by the Appellant on 25th
March, 2020, the grounds of
appeal which may be found at
page 125 of the Record of
Proceedings are as follows:
a.
That the Court of Appeal erred
in law in holding that the
National Labour Commission
properly invoked and exercised
its jurisdiction under section
65(5) of the Labour Act, 2003
(Act 651), when such
jurisdiction was not properly
invoked and exercised.
b.
That the Court of Appeal erred
in law in interpreting the
redundancy pay provisions under
section 65(2)(b) of the Labour
Act as applicable to a person
whose employment had been
terminated under circumstances
not involving a close down,
arrangement, or amalgamation,
when such situations were not
contemplated by the Labour Act,
2003 (Act 651)
c.
That the Court of Appeal erred
in affirming the National Labour
Commission’s award of redundancy
pay to the interested parties
although the conditions
precedent for the award of
redundancy pay had not been met.
d.
That the Court of Appeal erred
in law, in affirming the
National Labour Commission’s
award of interest on the sums
ordered in its decision, when
the National Labour Commission
has no jurisdiction to award
same.
e.
That the judgment of the Court
of Appeal is against the weight
of evidence.
PRELIMINARY ISSUES:
Before turning to discuss the
above grounds of appeal, we wish
to address two preliminary
issues raised by the Respondent
in its Statement of Case filed
on 31st January,
2020. The said issues are as
follows:
1.
That the
appeal is a nullity, having been
filed without leave of the Court
of Appeal, or in the
alternative, the Special leave
of this Court, the case having
commenced at the National Labour
Commission, a tribunal lower
than the High Court ; and
2.
That the
grounds of appeal, except ground
e, are argumentative and sin
against Rule 6(4) and (5) of the
Supreme Court Rules, 1996 (C.I
16). (As amended by C.I 24,
1999).
On the first preliminary issue
of whether or not the failure to
obtain leave of the Court of
Appeal and in the alternative,
the special leave of this Court,
renders the instant appeal a
nullity, it is worth having
regard to
Article 131 of the 1992
Constitution as well as
Section 4
of the Court’s Act, 1993 (Act
459).
Article 131 (1) and (2) of the
1992 Constitution states as
follows:
“131. (1) an appeal shall lie
from a judgment of the Court of
Appeal to the Supreme Court –
(a) as of right in a civil
or criminal cause or matter in
respect of which an appeal has
been brought to the Court of
Appeal from a judgment of the
High Court or a Regional
Tribunal in the exercise of its
original jurisdiction; or
(b) with the leave of the
Court of Appeal, in any other
cause or matter, where the case
was commenced in a Court lower
than the High Court or a
Regional Tribunal and where the
Court of Appeal is satisfied
that the case involves a
substantial question of law or
is in the public interest.
(2) Notwithstanding clause (1)
of this article, the Supreme
Court may entertain an
application for special leave to
appeal to the Supreme Court in
any cause or matter, civil or
criminal, and may grant leave
accordingly.
Section, 4(1) of the Courts Act,
1993 (Act 459) also states as
follows:
“In accordance with article 131
of the Constitution, an appeal
lies from a judgment of the
Court of Appeal to the Supreme
Court
(a) as of right, in a civil or
criminal cause or matter in
respect of which an appeal has
been brought to the Court of
Appeal from a judgment of the
High Court or a Regional
Tribunal in the exercise of its
original jurisdiction;
(b) with the leave of the
Court of Appeal, in a cause or
matter, where the case was
commenced in a Court lower
than the High Court or a
Regional Tribunal and where the
Court of Appeal is satisfied
that the case involves a
substantial question of law or
it is in the public interest to
grant leave of appeal;
(c) as of right, in a cause or
matter relating to the issue or
refusal or writ or order of
habeas corpus, certiorari,
mandamus, prohibition or quo
warrant.
(2) Notwithstanding subsection
(1), the Supreme Court may
entertain an application for
special leave to appeal to the
Supreme Court in a cause or
matter, including an
interlocutory matter, civil or
criminal, and may grant leave
accordingly.”
The obligation placed on an
Appellant who appeals a decision
that originated from the
decision of an inferior body or
a Court or tribunal lower than
a High Court, to seek leave of
the Court of Appeal before
filing an appeal to this Court
is a statutory as well as a
constitutional one. If an
appellant fails to seek leave
prior to filing an appeal to
this Court, where leave is
required, the appeal shall be a
nullity. This Court has held
in a plethora of cases that the
Courts will not encourage
violations of statute, let alone
of the Constitution. (see the
cases of
NETWORK COMPUTER SYSTEMS (NCS)
LTD VRS INTEL SAT GLOBAL SALES
AND MARKETING(2012) 1 SCGLR 218,
MARTIN ALAMISI AMIDU VRS. THE
ATTORNEY GENERAL & 2 ORS,
UNREPORTED, SUIT NUMBER,
71/15/12 DATED 1TH JUNE 2013,
REPUBLIC VR.S HIGH COURT,
KUMASI, EX PARTE BANK OF GHANA &
ORS (SEFA & ASIEDU INTERESTED
PARTIES) (NO.1); REPUBLIC V.
HIGH COURT KUMASI, EX PARTE
BANAK OF GHANA & ORS (GYANFI &
OTHERS INTERESTED
PARTIES)(NO.1)(CONSOLIDATED)(2013-
2014) 1 SCGLR 477. KROBO VRS.
AMOSA[ SUIT NO/; J4,56,2014,
UNREPORTED, 21ST
APRIL, 2016, REPUBLIC V. HIGH
COURT ACCRA (FAST TRACK
DIVISION) EX PARTE GHANA LOTTO
OPERATORS ASSOCIATION (NATIONAL
LOTTORY AUTHORITY, INTERESTED
PARTY) 2009 SCGLR 372, OKORE
ALIAS OWUSU & ANORTHER VRS. THE
REPUCLIC 1974 2GLR, 272 AZU
CRABBE C.J
The policy rationale for the
need to seek
leave of
Court to appeal is to weed
out frivolous and unnecessary
appeals as well as achieve
finality to litigation within a
reasonable time.
From the evidence before us, the
instant appeal is not one which
originates from the decision of
the Respondent (i.e. an inferior
tribunal). The original decision
that triggered the Appeal to the
Court of Appeal is the decision
of the High Court dated 10th
March, 2017 whereby the High
Court refused an application by
the Respondent for an order to
enforce an award by the
Respondent in favour of the
interested parties. The original
cause or matter that
precipitated the Appeal to the
Court of Appeal was therefore
the ruling of the High Court
aforesaid refusing to grant an
order for the enforcement of a
determination and award by the
Respondent herein. This is
clearly borne out by the Notice
of Appeal that was filed in the
Registry of the High Court on 2nd
June, 2017 for transmission to
the Court of Appeal the Court of
Appeal on. The said Notice of
Appeal reads in part as follows:
“PLEASE TAKE NOTICE that the
Applicant/Appellant herein being
dissatisfied with the decision
more particularly stated at
paragraph 2 herein of the High
Court (Labour and Industrial
Division II) Accra contained in
the judgment of Her Ladyship
Justice Laurenda Owusu dated the
10th day of March,
2017 hereby appeals to the Court
of Appeal on the grounds set out
in paragraph 3 and will at the
hearing of the appeal seek the
reliefs set out in paragraph 4.”
According to the Respondent’s,
its Appeal to the Court of
Appeal emanated from a
dissatisfaction with the
decision of the High Court
(Labour & Industrial Division
II) the decision of the High
Court dated 10th
March, 2017.The Respondent first
Appeal to the Court of Appeal is
not therefore one that
originated from a decision of an
inferior tribunal. The appeal,
without doubt emanated from the
said decision of the High Court.
It is the course or matter that
went before the High Court (the
right of
enforcement of the award by
the Respondent Commission) that
occasioned the ruling of the
High Court, which then became
the subject matter of appeal to
the Court of Appeal and not the
Labour Commission’s ruling.
Therefore, this appeal, being
one relating to a course, matter
and case that commenced in the
High Court, falls squarely
within the class of appeals
which lie as of right and for
which no leave is required.
Consequently, the instant case
is clearly distinguishable from
the case of James David Brown
vs. National Labour Commission &
Anor, Civil Appeal No.:
J4/74/2018, 19th June
2019 wherein this Court, per
Amegatcher JSC reasoned as
follows:
“In ordinary parlance, leave
implies praying to the Court
to grant permission to file the
appeal. The issue for
determination boils down to
this: does a further appeal to
the Supreme Court from the
Court of Appeal with respect to
a matter emanating from the
Labour Commission require leave
of the Court or is it an appeal
as of right?
The answer is in Article 131(1)
(b). Leave of the Court of
Appeal arises in circumstances
where a civil or criminal cause
or matter started in a Court
lower than the High Court and
the Court of Appeal is satisfied
that the case involves a
substantial question of law or
is in the public interest. The
decisions of the NLC in this
matter is a civil matter and,
therefore, satisfies the first
precondition. Since our opinion
above is conclusive that the NLC
is not a High Court, but an
adjudicatory body lower than the
High Court, the second
requirement would also have been
satisfied.”
The above ratio is thus
inapplicable to this case. This
is because, in the Brown case
(supra), the Appellant therein
appealed from the decision of
the National Labour Commission
to the Court of Appeal. It was
therefore the decision of the
National Labour Commission which
was under attack on appeal. In
the instant case however, the
appeal originates from the
ruling of the High Court and it
is the decision of the High
Court that was under attack on
Appeal and not that of the
Respondent Commission.
Consequently, the argument that
this appeal originate from a
cause or matter commenced in a
court lower than the High Court
is untenable and fails.
The instant appeal therefore
falls under article 131(1) (a)
of the 1992 Constitution which
states that “an appeal
shall lie from a judgment of the
Court of Appeal to the Supreme
Court as of right in a civil or
criminal cause or matter in
respect of which an appeal has
been brought to the Court of
Appeal from a judgment of the
High Court or a Regional
Tribunal in the exercise of its
original jurisdiction”
We therefore find that the
instant appeal is not a nullity,
same being an appeal which,
pursuant to article 131(1) (a)
of the 1992 Constitution, lies
as of right and as such does not
require leave of the Court of
Appeal or special leave of this
Court to be filed.
The second preliminary issue
borders on a contention by the
Respondent that grounds (a),
(b), (c) and (d) of the
Appellant’s grounds of Appeal
are argumentative and sin
against Rule 6 (4) and (5) of
the Supreme Court Rules,1996
(C.I 16).
Specifically, Rules 6 (4) and
(5) of the state:
“(4) The grounds of appeal shall
set out concisely and under
distinct heads the grounds upon
which the appellant intends to
rely at the hearing of the
appeal, without any argument or
narrative and shall be numbered
seriatim; and where a ground of
appeal is one of law the
appellant shall indicate the
stage of the proceedings at
which it was first raised.
(5) No ground of appeal which is
vague or general in terms or
discloses no reasonable ground
of appeal shall be permitted,
except the general ground that
the judgment is against the
weight of evidence; and any
ground of appeal or any part of
it which is not permitted under
this rule may be struck out by
the Court on its own motion or
on application by the
respondent.”
However, upon our perusal of
grounds (a), (b), (c), and (d),
we are of the view that whilst
grounds (a), (c), and (d) are
argumentative in their
formulation by the manner of the
use of the word “when”, which,
in the circumstances, by
necessary implication, is an
introduction of argumentation in
the grounds of appeal, ground
(b) is not. This is more so when
the Appellant fails in ground
(a) to set out the particulars,
details, specifics and/or
elements of the impropriety in
invoking and/or exercising the
Court of Appeal’s jurisdiction
under section 65(5) of the
Labour Act,2003 (Act 651).
Similarly, the Appellant fails
to particularize or set out the
details, elements, specifics or
nature of the errors allegedly
committed by the Court of Appeal
with respect to its award of
redundancy pay in ground (c)
and/or with respect to the award
of interest in ground (d) of the
Appeal.
Consequently, grounds (a), (c)
and (d), in our view, all sin
against rule 6(4) and (5) of C.I
16 for want of particulars,
coupled with the introduction of
argumentation, we accordingly
strike out grounds (a), (c) and
(d) of the grounds of Appeal. In
this regard, see the earlier
judgment of this Court, dated
5th
February, 2020 in the
unreported
Suit No.:
J4/12/2018[2020] entitled:
ACHIAMPONG VRS. OBAAPAYIN ABA
YAA (SUBST FORARABA ADAMWOMA) &
ORS. In this case, this
Court, per her Ladyship Dordzi
(Mrs.) JSC in striking out
offending grounds of appeal
under rule 6(4) and (5) of C.I
16 opined as follows:
“The ground in my view is
argumentative and narrative.
Above all, it failed to
particularize the errors of law
alleged … accordingly, the said
grounds which are in violation
of the rules of this court will
be struck out for
non-compliance”.
In contrast, ground (b) of
Appeal, even though the
formulation uses the word
“when”, it nevertheless, sets
out a sufficiently concise basis
of the Appellant’s challenge to
the decision of the Court of
Appeal. It provides details,
particulars, and specific
grounds for the Appellant’s
contention that section 65 (2)
(b) of the Labour Act, 2003 (Act
651) is inapplicable to a
person whose employment had been
terminated under circumstances
not involving a close down,
arrangement or amalgamation.
We are of the view that the
Appellant sufficiently sets out
the particulars of the grounds
upon which it intends to rely
prior to the needless
introduction of an element of
argumentation by recourse to the
word “when”.
Consequently, we are satisfied
that ground (b) aforesaid is
distinguishable from grounds
(a), (c) and (d) and
accordingly, from the
circumstances of the case of
ACHIAMPONG VRS. OBAAPAYIN ABA
YAA (SUBST FORARABA ADAMWOMA) &
ORS (supra), in the
circumstance, the prayer that we
strike out ground b of the
Appeal fails.
DISCUSSION OF GROUNDS (b) and
(e):
We now proceed to address
remaining grounds of the appeal
being (b) and (e) seriatim.
Ground (b) of the Appellant’s
appeal is as follows:
b.
“That the Court of Appeal erred
in law in interpreting the
redundancy pay provisions under
section 65(2)(b) of the Labour
Act as applicable to a person
whose employment had been
terminated under circumstances
not involving a close down,
arrangement, or amalgamation,
when such situations was not
contemplated by the Labour Act,
2003 (Act 651).”
Under this ground of appeal, we
are called upon to define the
scope of redundancy and to
determine whether the class of
persons who are made redundant
pursuant to section 65(1) of Act
651 are entitled to be paid
redundancy pay as pertains to
persons made redundant pursuant
to sections 65(2) of Act 651.
In the case of
BAIDEN V.
GRAPHIC CORPORATION, [2005-2006]
SCGLR 154 the Supreme Court
held in Holding 1 as follows,
“…redundancy ha[s] a statutory
meaning. Thus, in terms of
section 65(1) of the new Labour
Act, 2003 (Act 651), redundancy
might result when an employer
contemplated the introduction of
major changes in production,
programme, organisation,
structure or technology of an
undertaking that were likely to
entail termination of employment
of workers in that undertaking.”
Also
in
KOBI V GHANA MANGANESE CO LTD
[2007-2008] 2 SCGLR 771
AT 789,
Ansah JSC (as he then was)
defined redundancy under the
prevailing Ghanaian law as
follows:
“The collective agreement did
not define the terms
‘termination’ and ‘redundancy’
though it made provisions for
them. Speaking generally, the
two terms have different
meanings and connotations; for
by this ordinary meaning, to
‘terminate’ is to put an end
to, bring to an end; or, to
conclude. In a cause or matter
affecting employment, it means
to sever an employer-employee
relationship. A ‘redundancy’
would arise where major changes
in mode of production,
programmes or activities of a
company were likely to result or
resulted in reduction of the
needed labour force and there
was excess labour.”
Section 65 of Act 651 states as
follows:
“65 Redundancy
(1) When an employer
contemplates the introduction of
major changes in production,
programme, organization,
structure or technology of an
undertaking that are likely to
entail terminations of
employment of workers in the
undertaking, the employer shall
(a) provide in writing to the
Chief Labour Officer and the
trade union concerned, not later
than three months before the
contemplated changes, all
relevant information including
the reasons for any termination,
the number and categories of
workers likely to be affected
and the period within which any
termination is to be carried
out; and
(b)
consult
the trade union concerned on
measures to be taken to avert or
minimize the termination as well
as measures to mitigate the
adverse effects of any
terminations on the workers
concerned such as finding
alternative employment.
(2) Without prejudice to
subsection (1), where an
undertaking is closed down or
undergoes an arrangement or
amalgamation and the close down,
arrangement or amalgamation
causes (a) severance of the
legal relationship of worker and
employer as it existed
immediately before the close
down, arrangement or
amalgamation; and (b) as a
result of and in addition to the
severance that worker becomes
unemployed or suffers any
diminution in the terms and
conditions of employment, the
worker is entitled to be paid by
the undertaking at which that
worker was immediately employed
prior to the close down,
arrangement or amalgamation,
compensation, in this section
referred to as “redundancy pay”.
(3) In determining whether a
worker has suffered any
diminution in his or her terms
and conditions of employment,
account shall be taken of the
past services and accumulated
benefits, if any, of the worker
in respect of the employment
with the undertaking before the
changes were carried out.
(4) the amount of redundancy pay
and the terms and conditions of
payment are matters which are
subject to negotiation between
the employer or a representative
of the employer on the one hand
and the worker or the trade
union concerned on the other.
(5) Any dispute that concerns
the redundancy pay and the terms
and conditions of payment may be
referred to the Commission by
the aggrieved party for
settlement, and the decision of
the Commission shall subject to
any other law be final.”
The Respondent is a creature of
statute. Therefore, its
jurisdiction to entertain
complaints and adjudicate on
same cannot be capricious, it
must be borne out of statute.
This has been reiterated by this
Court in the case of
REPUBLIC
v HIGH COURT, ACCRA; EX PARTE
EASTWOOD LTD AND OTHERS
[1995-96] 1 GLR 689
In this case, Hayfron Charles
Benjamin citing
Timitimi
v Amabebe (1953) 14 WACA 374
at 376 held as follows:
“In the first place want of
jurisdiction is not to be
presumed as to a Court of
superior jurisdiction; nothing
is out of its jurisdiction but
that which specially appears to
be so. On the other hand, an
inferior Court . . . is not
presumed to have any
jurisdiction but that which is
expressly provided.”
Also, in the case of
REPUBLIC
V. AKROKERE SUB-TRADITIONAL
COUNCIL; EX-PARTE CARR AND
OTHERS [1980] GLR 925–93, it
was held that: “These
judicial committees of
traditional councils, being
inferior Courts created by
statute, are restricted in their
judicial functions by the
statutory provisions conferring
jurisdiction on them. They
cannot arrogate to themselves
jurisdiction over matters upon
which the parent statute is
silent.”
The jurisdiction of the
Respondent in determining
redundancy pay is well captured
in section 65(5) of Act 651,
which states that: Any
dispute that concerns the
redundancy pay and the terms and
conditions of payment may be
referred to the Commission by
the aggrieved party for
settlement, and the decision of
the Commission shall subject to
any other law be final.”
Section 65 of Act 651 is
captioned: REDUNDANCY. Although
the whole of section 65 deals
with Redundancy, it is only
section 65(2) (4) and (5) that
make specific references to the
term Redundancy pay. The said
sections read as follows:
“65(2) Without prejudice to
subsection (1), where an
undertaking is closed down or
undergoes an arrangement or
amalgamation and the close down,
arrangement or amalgamation
causes (a) severance of the
legal relationship of worker and
employer as it existed
immediately before the close
down, arrangement or
amalgamation; and (b) as a
result of and in addition to the
severance that worker becomes
unemployed or suffers any
diminution in the terms and
conditions of employment, the
worker is entitled to be paid by
the undertaking at which that
worker was immediately employed
prior to the close down,
arrangement or amalgamation,
compensation, in this section
referred to as “redundancy pay”.
65 (4) the amount of redundancy
pay and the terms and conditions
of payment are matters which are
subject to negotiation between
the employer or a representative
of the employer on the one hand
and the worker or the trade
union concerned on the other.
65(5) any dispute that concerns
the redundancy pay and the terms
and conditions of payment may be
referred to the Commission by
the aggrieved party for
settlement, and the decision of
the Commission shall subject to
any other law be final.”
From the language of section
65(2) above, it appears that the
payment of ‘Redundancy pay” is
inescapable when redundancy is
occasioned by one of three
things. They are: 1. Redundancy
occasioned by the closing down
of the undertaking; 2.
Redundancy occasioned as a
result of the undertaking
undergoing an arrangement; and
3. Redundancy occasioned by the
entity undergoing an
amalgamation. Where the legal
relationship of an employer and
employee is severed as a result
of a close down, arrangement or
amalgamation, the express
language of section 65(2)
mandates that “Redundancy pay”
be paid to the affected
employees.
Does the language of section
65(2) forbid the payment of
“redundancy pay” in instances
where the legal relationship of
the worker is terminated as a
result of the introduction of
major changes in production,
programme, organization,
structure or technology of an
undertaking? We think not. This
is clearly gleaned from the
language of section 65(1) of Act
651.
Section 65(1) of Act 651 states
as follows:
“(1) When an employer
contemplates the introduction of
major changes in production,
programme, organization,
structure or technology of an
undertaking that are likely to
entail terminations of
employment of workers in the
undertaking, the employer shall
(a) provide in writing to the
Chief Labour Officer and the
trade union concerned, not later
than three months before the
contemplated changes, all
relevant information including
the reasons for any termination,
the number and categories of
workers likely to be affected
and the period within which any
termination is to be carried
out; and
(b) consult the trade union
concerned on measures to be
taken to avert or minimize the
termination as well as measures
to mitigate the adverse effects
of any terminations on the
workers concerned such as
finding alternative employment.”
We are of the age old opinion of
this Court that a Statute must
be read as a whole in order to
arrive at a true meaning and
intend of the lawmaker.
Consequently, we are of the view
that both sections 65(1) and
65(2) of Act 651 and indeed the
all of section 65 as well as Act
651 must be read together.
Reading all of section 65 of Act
651 leads to the inescapable
conclusion that both 65 (1) and
(2) deal with Redundancy. Under
both subsections, the worker’s
employment is terminated as a
result of some form of major
changes in production,
programme, organization,
structure or technology of an
undertaking, or the close down,
arrangement or amalgamation of
the undertaking. The only point
of diversion between Redundancy
occasioned under section 65(1)
and 65(2) is that, in respect of
Redundancy under section 65(2)
the employer is mandatorily
required to pay the employee
Redundancy pay.
Under section 65(1) however, the
form of compensation for the
worker is left in the hands of
the employer and the terminated
employee or empolyee’s union to
negotiate. The compensation need
not necessarily be “redundancy
pay”. It may take the form of
the payment of “redundancy pay”
nonetheless. It may also take
the form of other measures taken
to ensure that the redundant
employee is given an alternative
employment within the same
entity or another. It appears to
us that where the employer is
unable to find a suitable
employment for the employee in
the same undertaking or another,
the only other means of
cushioning the employee against
the adverse effects of the
termination or redundancy may be
the payment of monetary
compensation which is variously
referred to as “severance pay”
or “Redundancy pay”. In the case
of the redundancy occasioned
under section 65 (1), the
undertaking continues to exist
and operate. There is also no
change in ownership. The only
difference may be that as a
result of the major changes in
production, programme,
organization, structure or
technology of an undertaking,
the competencies of the employee
may no longer be relevant in the
area of work for which the
worker was originally employed.
It is our considered opinion
that in cases where, after the
restructuring, the employee is
given
alternative
employment within the same
undertaking, it still amounts to
termination since the
contractual relationship, duties
and obligations in respect of
which the employee was initially
employed would have been altered
as a result of the major changes
in production, programme,
organization, structure or
technology of an undertaking.
(See sections 12 and 13 of the
Labour Act, 2003 (Act 651).
However, depending on the
negotiation between the employer
and the employee or the
employee’s labour union, the
finding of alternative
employment for the potential
ex-employee may suffice to
mitigate the adverse effects of
the constructive termination on
the employee.
Therefore, any attempt to define
the term “redundancy pay” under
Ghanaian law to limit the scope
of redundancy to include only
redundancy occasioned under
section 65(2) without due regard
to section 65(1) will not, in
our view, achieve the
legislative intent of section 65
of Act 651.
It is a time honored principle
of statutory interpretation to
always read the statute as a
whole to give effect to
legislative intent. For when a
statute is read piecemeal, it is
often taken out of context and
its meaning lost.
Adade JSC (as he then was) in
the case of
TAKYI v
GHASSOUB
[87-88] 2 GLR SC.,
observed that:
“… Where a doubt arises in the
construction of part of a
section of a statute, it is
necessary to read the section as
a whole, or in appropriate
cases, the statute itself, for
assistance.”
This position of the law has
been variously restated by this
Court in the cases of
ABABIO v.
THE REPUBLIC [1972] 1 GLR 347
and GTP v. ANKUJEAH [2000] 2 GLR
473, among others.
Upon a holistic perusal of the
Labour Act, 2003, Act 651, one
comes to the irresistible
conclusion that the whole of
Section 65 of the Labour Act,
2003, deals with redundancy.
For instance, reference to other
provisions of the Labour Act
does not make a distinction
between sections 65 (1) and (2)
of Act 651. Rather, section 65
of Act 651 is referenced as a
whole anytime the Act mentions
Redundancy. For purposes of
illustration, we shall make
reference to Section 62 of Act
651 on fair termination.
Section 62 of the Act provides:
“62. A termination of a worker’s
employment is fair if the
contract of employment is
terminated by the employer on
any of the following grounds:
(a) that the worker is
incompetent or lacks the
qualification in relation to the
work for which the worker is
employed; (b) the proven
misconduct of the worker;
(c) redundancy under section 65;
(d) due to legal restriction
imposed on the worker
prohibiting the worker from
performing the work for which he
or she is employed.”
Therefore, where terminations
occurs as a result of the
introduction of major changes in
production, programme,
organization, structure or
technology of a company, close
down, arrangement, amalgamation
of the company, such
terminations are deemed to
amount to redundancy.
It is also worth pointing out
that section 65 of Act 651 is
titled: REDUNDANCY.
An interpretation of redundancy
pay that does not encompass
section 65 (1) of Act 651 would
be one which admits to
technicalities at the expense of
the attainment of the
legislative intent.
Section 10 (4) of the
Interpretation Act, 2009
admonishes the Courts to
construe statute in a manner
that avoids technicalities and
recourse to niceties of form and
language which defeats the
purpose and spirit of the laws
of the Constitution and the Laws
of Ghana.
The said section states:
“s10 (4) Without prejudice to
any other provision of this
section, a Court shall
construe or interpret a
provision of the Constitution or
any other law in a manner
(a) that promotes the rule of
law and the values of good
governance,
(b) that advances human rights
and fundamental freedoms,
(c) that permits the creative
development of the provisions of
the Constitution and the laws of
Ghana, and
(d) that avoids technicalities
and recourse to niceties of form
and language which defeat the
purpose and spirit of the
Constitution and of the laws of
Ghana.
It would in any event be
unconscionable to imagine that
the lawmaker intended that only
Redundancy occasioned under
section 65 (2) would attract
redundancy pay. Having examined
the language of section 65(1) of
Act 651, we have come to the
view that section 65(1) is
rather expansive in its
prescription of what an employer
may do to cushion the employee
against the adverse effects of
the termination occasioned by
redundancy. The prescription in
our view may be the payment of
redundancy pay or the provision
of alternative employment or
even both, depending on the
agreement reached between the
Labour Union of the employee and
the employer.
It is our considered opinion
that section 65(1) is a novelty
introduced in Act 651. Such a
provision did not exist in the
Labour
Decree, 1967 (NLCD 157),
which was repealed with the
coming into effect of the Act
651. Under the NLCD 157,
redundancy pay, therein
described as “severance pay” was
payable when a company or entity
underwent a close down,
arrangement or amalgamation. The
provisions of section 34(1) (2)
and 35 of NLCD 157 is in
pari-materia with section
65(2) of Act 651.
Sections 34(1) (2) and 35 of
NLCD 157 states as follows:
“34. (1) where an organisation
is closed down or where an
organisation undergoes an
arrangement or amalgamation and
the close down , arrangement or
amalgamation causes a severance
of legal relationship of
employee and employer between
any person and the organization
as it existed immediately before
the close down, arrangement or
amalgamation, then, if as a
result of and in addition to
such severance that person
becomes unemployed or suffers
any diminution in his terms and
conditions of employment, he
shall be entitled to be paid by
the organization in whose
employment he was immediately
prior to the close down,
arrangement or amalgamation,
compensation, in this Decree
referred to as “severance pay”.
(2) In determining whether a
person has suffered any
diminution in his terms and
conditions of employment under
sub- paragraph (1) of this
paragraph account shall be taken
of the past services and
accumulated benefits (if any) of
such person in or in respect of
his employment with the
organization before it was
closed down or before the
occurrence of the arrangement or
amalgamation.
35. The amount of any severance
pay to be paid under paragraph
34 of this Decree as well as the
terms under which payment is to
be made shall be matters for
negotiation between the employer
or his representative and the
employee or his representative”
It is worthy of note that the
terms of sections 34 (1)(2) and
35 of NRCD 157 above were
substantially retained in Act
651 at 65(2)(3) and (4). It is
therefore our considered opinion
the section 65(1) of Act 651 was
thus intended to expand the
scope of the redundancy
provisions of our laws. It is
for this reason that section
65(2) is prefixed with the words
“without prejudice to subsection
(1)”
The language of section 65(2)
also lends credence to the fact
that Redundancy pay may result
due to terminations under
section 65(1) of Act 651. The
said section did not limit the
reference to redundancy pay to
only section 65(2). It broadened
the applicability of “Redundancy
Pay” to the entire section 65.
It states:
“…the worker is entitled to be
paid by the undertaking at which
that worker was immediately
employed prior to the close
down, arrangement or
amalgamation, compensation,
in this section referred to as
“redundancy pay”.
Where a worker becomes redundant
as a result of the introduction
of major changes in production,
programme, organization,
structure or technology of an
undertaking, the law is clear
that the employer shall contact
the Labour Union of the employee
and engage in consultations on
measures taken to reduce the
adverse impact of the redundancy
on the worker. Where the
employer and the employee or the
labour union of the employee are
agreeable on the payment of
monetary compensation as the
means to mitigate the adverse
effects of the termination, such
monetary compensation is what
section 65 of Act 651 describes
as “Redundancy pay”. All
disputes regarding the payment
of Redundancy pay come under
section 65 (5) of Act 651.
Therefore, the Respondent will
be exercising proper
jurisdiction when it determines
the quantum of Redundancy pay
where the parties are unable to
agree by themselves, the amount
of money to pay as Redundancy
pay.
In the instant case, no question
ever arose as to whether or not
the ex-employees of the
Appellant were entitled to
“Redundancy pay”. In fact, from
the letter of severance written
to the ex-employees, the
Appellant disclosed that it was
unable to find the ex-employees
any suitable role with the
Appellant bank. The letter read
in part as follows:
“REDUNDANCY”
This comes to inform you that
owing to the significant changes
that have occurred in the
demands skills and competencies
required for the delivery of its
current objectives, the bank
is no longer able to deploy you
in any role. You are
accordingly declared redundant
with effect from September, 1st
2015.
In accordance with article 65 of
the Labour Act, 2003 (Act 651)
the bank will submit
proposals for the negotiation of
a redundancy package with the
Union of Industry Commerce and
Finance Workers (UNICOF)
Your statement of accounts,
indicating your entitlements and
liabilities will be communicated
to you in due course, together
with a redundancy package
resulting from the negotiations.
We thank you for the services
rendered to the Bank during the
period of your employment and
wish you success in your future
endeavors.”
From the above letter, the
Appellant was clear in its mind
that the ex-employees were being
terminated pursuant to section
65 of Act 651 which section
deals with Redundancy. The
Appellant was clear in its mind
that it could not find any other
suitable role for the
ex-employees in the Appellant
bank. Again Appellant was also
clear on the measures it was
going to take to mitigate the
adverse effects of the
termination or redundancy, that
is, the payment of “Redundancy
package” to be negotiated with
the Union of which the
ex-employees were members. The
proceedings before the
Respondent as well as all the
correspondence exchanged between
the Complainant and the
Appellant and the Respondent all
patently suggest that the
parties were agreeable on the
payment of Redundancy package to
the ex-employees.
It is patently evident that the
ex-employees of the Appellant
were terminated under section 65
of Act 651. This has always been
the song sang by the Appellant
in all of its correspondence and
the representations made at the
hearings held by the Respondent
between the Appellant and the
Complainant. The entitlement of
the ex-employees to the
redundancy package was never
disputed by the Appellant at the
hearing before the Respondent.
In fact, most of the components
of the Redundancy package were
agreed between the Appellant and
Respondent themselves.
To our minds therefore, the
facts of this case bear
overwhelming evidence of the
fact that the Respondent rightly
assumed jurisdiction over the
matter and determined it.
The term “Redundancy” is
explained in
Halsbury’s Laws of England, 4th
Edition, 2000, Vol. 16 Para
667, as follows:
“An employee who is dismissed is
taken to be dismissed by reason
of redundancy if the dismissal
is attributable wholly or mainly
to the fact that
1.
His employer has ceased
or intends to cease to carry on
the business for which the
employee was employed by him;
2.
His employer has ceased
or intends to cease to carry on
that business in the place
where the employee was so
employed;
3.
The requirements of that
business for employees to carry
out work of a particular kind
have ceased or diminished or are
expected to cease or diminish;
or
4.
The requirements of that
business for employees to carry
out work of a particular kind in
the place where they were
employed have ceased or
diminished or are expected to
cease or diminish.”
The above definition of
redundancy in the Halsbury’s
Laws of England is drawn from
section 139 of the Employment
Rights Act” 1996 of the United
Kingdom. It is worthy of note
that per section 135 (a) of the
Employment Rights Act, 1996,
C18,
“An
employer shall pay a redundancy
payment to any employee of his
if the employee is dismissed by
the employer by reason of
redundancy.” Payment of
redundancy pay, is not
restricted to any class of
redundant employees.
Redundancy laws may mean
differently in different
jurisdictions. In Kenya,
Redundancy is defined under the
Kenyan Employment Act, 2007(Cap
226) as follows:
“redundancy” means the loss of
employment, occupation, job or
career by involuntary means
through no fault of an employee,
involving termination of
employment at the initiative of
the employer, where the services
of an employee are superfluous
and the practices commonly known
as abolition of office, job or
occupation and loss of
employment;”
Per Section 40 (1) of the Kenyan
Employment Act, all persons made
redundant are by statute
entitled to Redundancy pay, (in
their Act referred to as
severance pay. The said section
says:
“An employer shall not terminate
a contract of service on account
of redundancy unless the
employer complies with the
following conditions the
employer has paid to an employee
declared redundant severance pay
at the rate of not less than
fifteen days’ pay for each
completed year of service”.
Section 20 of the Nigerian
Labour Act, Act (Cap L1 LFN
2004) defines the term "redundancy”
to mean an involuntary and
permanent loss of employment
that is caused by an excess of
manpower”
Under the Nigerian Labour Law,
all persons declared redundant
pursuant to the Labour Act are
entitled to Redundancy pay.
Section 20 of the Nigerian
Labour Act states:
“20.(I) In the event of
redundancy-
(a) the employer shall inform
the trade union or workers'
representative concerned of the
reasons for and the extent of
the anticipated redundancy;
(b) the principle of "last in,
first out" shall be adopted in
the discharge of the particular
category of workers affected,
subject to all factors of
relative merit, including skill,
ability and reliability; and
(c) the employer shall use his
best endeavours to negotiate
redundancy payments to any
discharged workers who are not
protected by regulations made
under subsection (2) of this
section.
(2) The Minister may make
regulations providing, generally
or in particular cases, for the
compulsory payment of redundancy
allowances on the termination of
a worker's employment because of
his redundancy.
(3) In this section "redundancy"
means an involuntary and
permanent loss of employment
caused by an excess of
manpower.”
In Ghana, the law that was
applicable on redundancy was the
Labour Decree, 1967 (NLCD 157)
as Amended by the Labour
Amendment Decree, 1969 (NLCD
342). The said law has been
repealed by the Labour Act, 2003
(Act 651). The repealed law
defined redundancy and the
redundancy pay, to include
instances of closure,
arrangement or amalgamation. The
repealed Act, like its
counterpart laws on redundancy
in some other common law
jurisdiction, did not
discriminate against any class
of redundant workers.
We have made reference to the
above redundancy pay provisions
of to demonstrate that like the
repealed NLCD 157, hardly do
laws of these other nations
discriminate when it comes to
payment of redundancy pay to all
class of occasions under which
the law deems redundancy to have
occasioned. Of course, the
Ghanaian parliament is
autonomous and our laws are
tailored to suit our own
socio-economic and
politico-economic aspirations.
We are therefore aware of the
need to interpret the provisions
of our statutes to give effect
to the legislative intent, which
intend must be synchronized with
the underlying aspirations of
the Ghanaian people gleaned from
our Constitution.
We hold that Redundancy pay
under section 65(2) (b) and
sections 65(4) and (5) of the
Labour Act as applicable to a
person whose employment had been
terminated under circumstances
not involving a close down,
arrangement, or amalgamation, is
also applicable to persons who
are made redundant by virtue of
the introduction of major
changes in production,
programme, organization,
structure or technology of an
Undertaking.
Consequently, the second ground
of appeal fails and is hereby
dismissed.
Appellant’s
last ground of Appeal, ground
(e), is that, the judgment of
the Court of Appeal is against
the weight of evidence.
Dotse JSC in the case of
Abbey &
Others v. Antwi [2010] SCGLR 17
at 34, in his erudite
judgment postulated:
“It is now trite learning that
where the appellant alleges that
the judgment is against the
weight of evidence, the
appellate Court is under an
obligation to go through the
entire record to satisfy itself
that a party’s case was more
probable than not. As was held
by their Lordships in
Tuakwa v
Bosom [2001-2002] SCGLR 61
(Per Sophia Akuffo JSC),
“An appeal is by way of
re-hearing, particularly where
the Appellant alleges in his
notice of appeal that the
decision of the trial Court is
against the weight of the
evidence… In such a case, it is
incumbent upon an appellate
Court, in a civil case, to
analyse the entire Record of
Proceedings, take into account
the testimonies and all
documentary evidence adduced at
the trial before arriving at its
decision, so as to satisfy
itself that on a balance of
probabilities, the conclusions
of the trial judge are
reasonably or amply supported by
the evidence”.
In the case of
Djin v
Musah Baako[2007-2008] SCGLR 686
this Court, per Aninakwah
JSC (as he then was) opined
that:
“It has been held in several
decided cases, and the
authorities are many, that where
an appellant complains that
judgment is against the weight
of evidence, then he is implying
that there were certain pieces
of evidence on the record which
if applied in his favour could
have changed the decision in his
favour, or certain pieces of
evidence have been wrongly
applied against him. The onus is
on such an appellant to clearly
and properly demonstrate to the
appellate Court the lapses in
the judgment being appealed
against.”
Again this Court speaking
through Aryeetey JSC in the case
of
Agyenim-Boateng vs. Ofori
&Yeboah (2010) SCGLR 861 at
page 867 held that:
“…The appellate Court can only
interfere with the findings of
the trial Court where the
trial Court : (a) has taken
into account matters which were
irrelevant in law; (b) has
excluded matters which were
critically necessary for
consideration; (c) has come to
conclusion which no Court
properly instructing itself
would have reached ; and (d) the
Court ’s findings were not
proper inferences drawn from the
facts…However, just as the trial
Court is competent to make
inferences from its specific
findings of fact and arrive at
its conclusion, the appellate
Court is also entitled to draw
inferences from findings of fact
by the trial Court and to come
to its own conclusions”.
Her Ladyship Sophia Akuffo JSC
(as she then was) in Tuakwa V
Bosom [2001-2002] SCGLR 61,
rehashed this position of law
and stated as follows,
“…an appeal is by way of a
re-hearing particularly where
the appellant … alleges in his
notice of appeal that, the
decision of the trial Court is
against the weight of the
evidence. In such a case,
although it is not the function
of the appellate Court to
evaluate the evidence for the
veracity or otherwise of any
witness, it is incumbent upon an
appellate Court , in a civil
case, to analyze the entire
Record of Proceedings, take into
account the testimonies of all
documentary evidence adduced at
the trial before it arrived at
its decision, so as to satisfy
itself that on a preponderance
of the probabilities, the
conclusions of the trial judge
are reasonably or amply
supported by the evidence.”
More recently, in a judgment
dated 3rd
April, 2019 in Suit
No.:J4/04/2019 entitled:
Atuguba
and Associates vrs Scipion
Capital (UK) Ltd. and Another,
this Court, per Amegatcher JSC
reasoned as follows:
“It has long been the practice
among some legal practitioners
to shirk the responsibility
imposed on them to formulate
specific grounds of appeal
stating where trial judges erred
for the consideration of the
appellate court. The omnibus
ground has been a hideout
ground. The responsibility in
even minor appeals is shifted to
the appellate judges to comb
through the records of appeal,
review the evidence and identify
the specific areas the trial
judge erred before coming out
with the court’s opinion on the
merits or otherwise of the
appeal. The situation is
worrying where no viva voce
evidence is proffered and a
judge is called upon to exercise
judicial discretion, such as in
applications for injunction,
stay of execution, amendment,
joinder, judicial review, and
consolidation, just to mention a
few. In our opinion, though the
rules allow the omnibus ground
to be formulated as part of the
grounds of appeal, it will
greatly expedite justice
delivery if legal practitioners
formulate specific grounds of
appeal identifying where the
trial judge erred in the
exercise of a discretion. A
proper ground of appeal should
state what should have been
considered which was not and
what extraneous matters were
considered which should not have
been. We believe this approach
will better serve the ends of
justice and lessen the use of
the omnibus ground particularly
in interlocutory matters and in
the exercise of judicial
discretion.
The court’s position on the use
of the omnibus ground is not new
in our jurisprudence. There is a
long list of decisions in which
this court has decried the
misuse of the omnibus ground of
appeal. In the case of
Brown v
Quashigah [2003-2004] 2 SCGLR
930 at 941 this court held
that appellants must invoke the
rule of practice for appeals
argued by way of re-hearing by
filing appropriate grounds of
appeal, distinguishing the
so-called omnibus ground,
namely, that the judgment was
against the weight of the
evidence at the trial, from
misdirection or errors of law,
challenge to jurisdiction or
capacity, etc.
In Re:
Suhyen Stool; Wiredu & Obenwaa v
Agyei & Ors [2005-2006] SCGLR
424, a chieftaincy matter
from the Judicial Committee of
the National House of Chiefs,
this court disapproved the
unhelpful practice of throwing
in an omnibus ground of appeal
as a backup, even where there
had been little difference in
the evidence or the facts as
submitted by both parties to the
suit. Again in the case of
Asamoah v
Marfo [2011] 2 SCGLR 832 the
judgment that was delivered was
a default judgment in which no
evidence was taken. This court
found it strange for counsel for
the appellant to appeal against
the judgment for being against
the weight of evidence and
dismissed that ground as
unmeritorious. In the recent
decision of this court in the
case of
Fenu & Ors v The
Attorney-General & Ors [2019]
130 GMJ 179 the court held
that the omnibus ground is
usually common in cases in which
evidence was led and the trial
court was enjoined to evaluate
the evidence on record and make
its findings of fact in
appropriate cases. In
interlocutory appeals where no
evidence was led such ground of
appeal is misconceived.”
It is worrying that parties and
counsel continue to throw the
omnibus ground at the court
without due regard to the
guidelines issued in the cases.
These rulings of the court were
not delivered for the fun of it.
They were meant to be read by
all Supreme Court practitioners
and be used as a guide in
formulating grounds of appeal
filed in this court. It is about
time counsel and parties alike
appearing before this court took
decisions, directions and
guidelines issued by it
seriously and complied strictly
with them.”
Consequently, the burden on the
Appellant in this case to
properly set out, particularise,
detail, specify and demonstrate
the lapses, omissions, failures,
misdirection, wrongful
evaluations, irrelevant matters
and considerations of the
evidence complained about in the
judgment cannot be
overemphasised. This the
Appellant has woefully failed to
do.
Appellant’s
argument on this ground of
Appeal is rather scanty to say
the least. The entire plaint of
the Appellant under this ground
of appeal is as follows:
“My Lords, as has been argued
above, for an employee to be
entitled to redundancy pay,
there ought to be the existence
of a close down, arrangement or
amalgamation. We have similarly
demonstrated above, that looking
at the record, there was no
evidence of a close down,
arrangement or amalgamation.
There was therefore no dispute
concerning redundancy pay. It is
therefore our submission, my
Lords that this appeal should
succeed.”
Needless to say, this falls far
short of the criteria repeatedly
laid down by this Court in the
cases above.
The Appellant’s failure
notwithstanding, we have
carefully evaluated the evidence
on record, and the proceedings
that eventuated in the
determination of the Respondent
as well as the High Court. There
were, in fact, no material facts
in dispute in the application
before the High Court. We are
therefore unable to agree with
the Appellant that some piece of
evidence on record has been
misapplied against the
Appellant.
The redundant employee per
section 65(1) (b) is entitled to
some sort of measures to cushion
him or her against the adverse
effects of the termination of
his/her employment. Thus, from
the factual basis of the letter
of termination it was clear that
the employees were made
redundant with the assurance of
the receipt of a redundancy pay.
In fact, the proceedings at the
Respondent Commission show that
the parties submitted to the
authority of the Commission to
determine the redundancy pay.
The parties agreed on all other
aspects of the redundancy
packages themselves. The only
issue in respect of which there
was no meeting of minds was the
“multiplier for the severance
award”. In that respect, whilst
the Complainant demanded four
months’ salary of each year
served, the Appellant offered
one month salary of each year
served.
The Respondent, being seized
with the statutory jurisdiction
under section 65(5) of Act 651
properly adjudicated on the
quantum of Redundancy pay as
well as the terms and conditions
of payment including interest.
The final ground of Appeal of
the Appellant fails and same is
also dismissed in
limine.
We therefore affirm the decision
of the Court of Appeal and order
that Appellant pays the
entitlements of the two
ex-employees in terms of the
relief granted by the Court of
Appeal. That is to say:
1. The Respondent shall
pay all the monthly net salaries
of the two workers from 1st
September, 2015 to date of this
decision and also pay their
SSNIT contribution for the
workers;
2. The Respondent shall
pay to the workers;
a. GH¢
2,000 as golden handshake
b. GH¢ 3,000 as
repatriation
c. GH¢ 5,000 as bonus
3. That the Respondent
shall pay to the two workers
three months gross salary for
every year of service from the
date of their respective
appointments of the two workers
to the date of the decision.
4. The Respondent shall
pay to the two workers any
accrued benefits such as
provident fund (however called)
and accrued leave.
5. That all the payment
ordered herein shall begin from
1st day of November, 2016 to
date of final payment.
We also affirm the consequential
order given by the Court of
Appeal that all orders hereby
made or affirmed shall be
complied with within a month
from today.
E. YONNY KULENDI
(JUSTICE OF THE SUPREME COURT)
N. S. GBADEGBE
(JUSTICE OF THE SUPREME COURT)
N. A. AMEGATCHER
(JUSTICE OF THE SUPREME COURT)
M. OWUSU (MS)
(JUSTICE OF THE SUPREME COURT)
AVRIL LOVELACE-JOHNSON (MS)
(JUSTICE OF THE SUPREME COURT)
COUNSEL
EFFIBA AMIHERE FOR THE
APPLICANT/APPELLANT/RESPONDENT.
ISMAEL ANDANI ABDULAI FOR THE
REPONDENT/RESPONDENT/APPELLANT.
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