CONSOLIDATED AFRICAN SELECTION TRUST LTD v. NKETIA
April 5, 1971
COURT OF APPEAL
CORAM
- APALOO
- JIAGGE
- SOWAH
Areas of Law
- Employment Law
- Contract Law
April 5, 1971
COURT OF APPEAL
CORAM
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JUDGMENT OF APALOO J.A.
On 15 December 1957, the respondent was employed by the appellant company (hereinafter called the company) as a surveyor at a monthly salary of £G85. The appointment was in writing and contains the terms and conditions of service. It is dated 2 April 1958, and was produced in evidence as exhibit B. The appointment was for an indefinite period. Apparently, the earlier letter of engagement was a temporary one because in March 1960 the company sent to the respondent, another letter of engagement. It also sets out in slightly greater detail the terms and conditions of his engagement (exhibit C.) The respondent acknowledged these terms and expressed his concurrence to them as follows: "I agree to the above terms and confirm that the above letter of engagement may be deemed to have superseded the temporary letter of engagement dated 2nd April, 1959 and to have been effective as from 1st March, 1960."
It seems that the respondent's services met with the company's satisfaction because in October 1962 he was promoted to what was described as the company's supervisor grade. He was again given a new letter of engagement and this contains as usual, the terms and conditions of his employment (exhibit D). One striking feature of all these letters of his engagement is that, each contains a clause expressly conferring on the company a right to terminate the respondent's appointment and providing the length of notice that may be given prior to such termination. The letter of engagement which was current at the date material to this case (exhibit D), by paragraph (4) (a), provides as follows: "(4) (a) Your engagement may be terminated at any time by one party giving to the other not less than a month's notice in writing." This clause was amended to the respondent's advantage by a letter addressed to the latter from the company and dated 29 January 1965 (exhibit 1). The relevant part of it reads:
"It has now been decided that notwithstanding anything contained in your new letter of engagement, you will be given a personal concession as a former member of the company 'A' staff, and the clause covering notice by the company will remain as previously. This is to say, the company may terminate your engagement by giving three months' notice in writing instead of the one month stipulated in paragraph 4 (a) of your new letter of engagement."
If anything can be said to be clear in the contract under which the respondent was employed, it is the provision r
AI Generated Summary
Apaloo J.A., writing for the Court of Appeal with JIAGGE J.A. and SOWAH J.A. concurring, reversed a High Court judgment awarding damages to a former surveyor of the appellant company. The respondent’s employment was governed by written letters of engagement, culminating in exhibit D (October 1962), which allowed termination on notice, later varied to three months for the company’s notice obligation. A separate pension and provident fund letter (exhibit E) referenced the Exchange Control Act, 1961 (Act 71) and expressed a hope of career to normal retirement age. The High Court treated paragraph (8) of exhibit E as a collateral contract of life employment, but the appellate court held exhibit E was incidental and did not fetter the express termination clause in exhibit D. The company lawfully terminated by paying three months’ salary in lieu of notice, had no contractual duty to provide reasons, and the wrongful dismissal claim failed.