• 10 Marks

BCL-Nov-2024-L1-Q3a-Unfair Termination of Employment

Legal basis for unfair termination of employment under the Labour Act.

Alahey, an employee of Gyammea Ventures, has had his appointment terminated following allegations of financial impropriety. In his response to a query for the alleged offense, he admitted committing the offense and pleaded for leniency.

For the offense of financial impropriety, the corresponding penalty should have been dismissal, as per the “Employee Handbook” of the company.

On account of his plea, Management decided to terminate the relationship with loss of terminal benefits. Alahey is minded to sue Gyammea Ventures for unfair termination and has approached you for advice.

Required:
With your understanding of the Labour Act, 2003, (Act 651), explain to Alahey the basis for severance of the employment relationship that can constitute unfair termination.

  • Section 8 (a), 11 (e), and 9 (e) of the Labour Act, 2003 (Act 651):

    • The rights of an employer include the right to employ a worker, discipline, transfer, promote, and terminate the employment of the worker.
    • It is the duty of an employer to provide and ensure the operation of an adequate procedure for discipline of the workers.
    • The duties of a worker in any contract of employment include the duty to obey lawful instructions regarding the organization and execution of his or her work.

  • Section 15 (e) (iii) & 15 (a) of Labour Act, 2003 (Act 651):

    • A contract of employment may be terminated:
      • By mutual agreement between the employer and the worker.
      • By the employer due to:
        • Sickness or accident.
        • Incompetence of the worker.
        • Proven misconduct of the worker.
    • The contract was renegotiated between Alahey and the employer.

  • Section 62 (b) of Labour Act, 2003 (Act 651):

    • A termination of a worker’s employment is fair if the contract of employment is terminated by the employer on the ground that there is proven misconduct of the worker. The termination was fair.

  • Decided Cases:

    • Aboagye v Ghana Commercial Bank.
    • NLC v Ghana Telecommunication Ltd.
Back to all questions

Pick a Form

Professional Tutor Application Form
Academic Tutor Application Form
Student Tutor Application Form