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NATIONAL LABOUR COMMISSION V FIRST ATLANTIC BANK

Case

by GBADEGBE, JSC (PRESIDING), AMEGATCHER, JSC, OWUSU (MS), JSC, LOVELACE-JOHNSON (MS), JSC, KULENDI, JSC

Jurisdiction

Supreme Court

Judge

GBADEGBE, JSC (PRESIDING), AMEGATCHER, JSC, OWUSU (MS), JSC, LOVELACE-JOHNSON (MS), JSC, KULENDI, JSC

Catalog Type

Case

Judgement Date

Dec 02, 2020

Summary

Labour Law — Redundancy — Interpretation of s.65 of Labour Act, 2003 (Act 651) — Whether redundancy pay applies only to close‑down, arrangement, or amalgamation — Jurisdiction of the National Labour Commission — Weight of evidence FACTS On 27 August 2015, the Bank declared two employees redundant, citing major changes in required skills and inability to deploy them. The Bank promised to negotiate a redundancy package under s.65 of the Labour Act, 2003 (Act 651). Negotiations between the Bank and the workers' union (UNICOF) stalled, prompting a complaint to the NLC. NLC conducted hearings and ruled that each worker be paid three months' salary for each year of service (in addition to previously agreed items). The Bank argued it had “internal issues” delaying negotiations Held: 1. Section 65 must be read as a whole. Redundancy under s.65(1) (major changes in production, programme, organisation, structure or technology leading to termination) and redundancy under s.65(2) (close‑down, arrangement, amalgamation) are both forms of redundancy envisaged by Act 651. The Act does not restrict redundancy pay to situations under s.65(2). Monetary compensation (“redundancy pay”) may lawfully arise under s.65(1) subject to negotiation. 2. National Labour Commission’s jurisdiction properly invoked. Section 65(5) empowers the NLC to settle disputes concerning redundancy pay. The parties themselves acknowledged redundancy, invoked s.65, and submitted unresolved aspects of the redundancy package—specifically the multiplier for severance—to the NLC. The Commission therefore acted within its statutory mandate. 3. Appeal not a nullity. The case originated from a High Court ruling refusing enforcement of the NLC’s award. Under Art. 131(1)(a) of the Constitution, an appeal from a Court of Appeal judgment that itself arose from a High Court decision lies to the Supreme Court as of right, without the need for leave. 4. Grounds of appeal — Argumentative grounds struck out. Grounds (a), (c), and (d) of the Bank’s appeal were struck out for violating Rule 6(4)–(5) of C.I. 16, being argumentative and lacking particulars. Ground (b) (statutory interpretation) and ground (e) (weight of evidence) were considered on the merits. 5. Redundancy pay — Application of law. The Court affirmed that redundancy pay is payable where termination results from organisational changes under s.65(1), even absent a close‑down, arrangement, or amalgamation. The Bank itself expressly declared the employees redundant under s.65 and initiated negotiations. 6. Appeal against weight of evidence dismissed. No misapplication or omission of evidence was shown. The record established that: a. Employees were declared redundant; b. Negotiations occurred; c. Only the multiplier (1 month vs. 4 months) was unresolved; d. The NLC properly determined the multiplier (3 months per year).

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