BCL – L1 – Q44 – Leave and Restrictive Covenant

(a) Kofi Mensah, a member of staff in your auditing firm requested for and was granted part of his annual leave by management. Thereafter, he submitted a resignation letter to management. A week into his leave, management recalled him in writing to conduct an important exercise. He replied saying that he was unable to come to work. It has been confirmed that Kofi Mensah was unable to return to work because he had started work with a competitor firm.

The service conditions prohibit any worker from working with a competitor within two years after terminating their contract of employment with your firm. Management has referred the issue to you for your advice in reference to the Labour Act, 2003, (Act 651) and other relevant laws.

(b) Discuss two (2) remedies available to those who have been subject to unfair dismissal.

(a). Candidate shall discuss leave entitlement as per Section 20 of Labour Act, 2003, (Act 651), (2 marks)
Section 20 – Annual Leave with Pay
Leave entitlement
In an undertaking every worker is entitled to not less than fifteen working days leave with full pay in a calendar year of continuous service. (2) The expression “full pay” means the worker’s normal remuneration, without overtime payment, including the cash equivalent of a remuneration in kind.
Candidate shall discuss Section 17 of Labour Act, 2003, (Act 651) notice of termination of employment
Section 17 – Notice of termination of employment
(1) A contract of employment may be terminated at any time by either party giving to the other party,
in the case of a contract of three years or more, one month’s notice or one month’s pay in lieu of notice;
in the case of a contract of less than three years, two weeks’ notice or two weeks’ pay in lieu of notice; or (c) in the case of contract from week to week, seven days’ notice.
A contract of employment determinable at will by either party may be terminated at the close of any day without notice.
A notice required to be given under this section shall be in writing.
The day on which the notice is given shall be included in the period of the notice.

  • Notice period not covering the leave days; he is still a worker.
  • Section 25 of Labour Act, 2003, (Act 651); He was recalled.
    Section 25 – Leave to be uninterrupted
    A worker is entitled to enjoy an unbroken period of leave but employer, in cases of urgent necessity, may in accordance with section, require a worker to interrupt leave and return to work.
    Where a worker is required by the employer to interrupt leave in the circumstances specified in subsection (1) the worker shall not for the right to the remainder of the leave but shall take the leave anytime thereafter.
    Where a worker takes annual leave at the end of a calendar year, the leave may continue except as provided in subsection (1) without interruption, into the following year.
  • Restrictive covenant; working for a competitor amounts to a breach of contract
  • Discuss remedies for breach of contract applicable including action for damages, injunction & specific performance.

(c). 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 the employment is unfair, it may

a) order the employer to re-instate the worker from the date of the termination of employment;

b) 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; or

c) order the employer to pay compensation to the worker.