- 20 Marks
BCL – L1 – Q46 – Employment Law
Question
James Quayle, the Deputy Sales and Marketing Manager of SkyPure Ltd, admitted at the Disciplinary Committee hearing that he sold the company products above the approved price and pocketed the difference. He pleaded that Management should temper justice with mercy. His plea was not taken, and he has accordingly been dismissed in line with the Company’s Conditions of Service. Five (5) months later, a member of the senior staff association has advised James Quayle to file a suit for unfair termination as the termination letter was not signed by the Managing Director but the Head of Department as required by the Conditions of Service.
Management is adamant but has approached you for an opinion. You are to advise management in the context of the Labour Act, 2003 (Act 651) and to draw management’s attention to the consequences of unfair termination.
Answer
Define the agency relationship and indicate how this relationship is created.
Agency may be created in a number of ways and in a number of circumstances as follows:
- Agency by agreement or mutual consent of the parties.
- Agency by operation of law.
- Agency by estoppel.
- Agency by ratification.
Explain the relationship between James Quayle and SkyPure Ltd (Agent & Principal).
Explain the duties of the agent towards the principal in relation to the question.
The action of Quayle breaches the agency relationship.
Remedies available include suing to claim the secret profit and terminating the agency relationship.
It must be established that termination of employment must be done by an authorized person (Blay-Morkeh V Ghana Airways Corporation).
Head of Department signing termination letter in his own name constitutes unfair termination. Remedies for unfair termination – reinstatement or re-employment or compensation of the worker (section 64 of the Labour Act, 2003, (Act 651)).
- Tags: Agency, Employment Law, Labour Act, Remedies, Unfair Termination
- Level: Level 1
- Topic: Agency
- Uploader: Samuel Duah