National Labour Commission v. Pipes & Plastics Products Ltd
2013
COURT OF APPEAL
GHANA
CORAM
- OWUSU M., J.A. (PRESIDING)
- OFOE V., J.A.
- SOWAH C., J.A.
Areas of Law
- Employment Law
- Labour Law
2013
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
This case involves an appeal by an employer against a decision of the National Labour Commission regarding the calculation of end of service benefits for three former employees. The main issues were whether the probation period should be included in the calculation of service length, and whether compensation for outstanding leave should be added to terminal benefits. The Court of Appeal dismissed the appeal, affirming the Labour Commission's decision. The court held that a five-year probation period was unreasonable, and that the employees should be considered permanent workers, not casual laborers, given their continuous employment. The court ruled that end of service benefits should be calculated from the date of engagement, not the date of confirmation of appointment, and that compensation for unused leave should be paid. This decision emphasizes the importance of fair treatment of employees in terms of service recognition and benefits calculation, particularly in cases of long-term employment initially classified as probationary or casual.
MARIAMA OWUSU, J. A
On 10-11-2008, the National Labour Commission upheld the petitioners petition and ordered the respondent to compute the end of service benefit of the Petitioners, taking into account their date of engagement, inclusive of the period of probation, and forward the computation to the Commission within fourteen (14) days from the date of receipt of the decision for further directives.
The respondent was further directed to add to the Petitioners’ terminal benefits, the sum of money representing leave earned by the Petitioners.
Dissatisfied with the decision of the Commission, the respondent appealed to this court on the following grounds; 1. The Labour Commission misdirected itself on the interpretation put on Article 44 of the Appellant Company’s Collective Bargaining Agreement.
2. The Commission erred in holding that the length of service of a worker includes the probation.
3. The Commission erred in directing the Appellant to add to the Petitioners terminal benefits the sum of money representing outstanding leave earned.
The relief sought from the Court of Appeal is to overturn the decision of the Labour Commission.
Before dealing with arguments canvassed in support and against this appeal, I will give a brief background of this case.
The Petitioners, Stephen Gyamfi, Thomas Nsor and Felix Sakyi were former employees of the respondent company.
The 1st, 2nd and 3rd Petitioners were employed sometime in 2000, 2001 and 2002 respectively.
It was not until 2005, 2006 and 2007 respectively that their respective appointments were confirmed.
The Petitioners resigned from the respondent’s company sometime in 2008. When their end of service benefits were computed for payment it excluded their probation period and the sum of money representing outstanding leave they have earned.
The Petitioners therefore complained to the National Labour Commission for redress.
After going into the matter, and examining the respondent’s Collective Agreement, the Commission ruled in favour of the Petitioners and ordered respondent/appellant to compute the end of service benefit of the Petitioners taking into account the date of engagement, inclusive of the probation period.
The Commission further ordered the respondent/appellant to add to the terminal benefits the sum of money representing outstanding leave earned by the Petitioners.
Aggrieved with the decision of the Labour Commission, the appellant appealed to this Court.
In this appeal, the respo