Back to Catalog

ISAAC K. KOBI & 24 OTHERS v GHANA MANGANESE COMPANY LTD.

Case

Jurisdiction

Court of Appeal

Judge

QUAYE, J.A.

Catalog Type

Case

Judgement Date

Jun 24, 2004

Summary

Employment Law — Termination of Employment — Strike Action — Collective Agreement — Whether termination was wrongful — Defamation — Burden of Proof Facts: The appellants, employees of the respondent mining company, participated in or were affected by an industrial action on 19 May 1999. Although management subsequently rescinded its initial decision to close the mine and dismiss all workers, it required all employees to execute a “Declaration of Renewal of Confidence and Loyalty” as a condition for re‑entry. Despite complying, 25 employees, including persons who were not present at the strike, were issued rejection letters terminating their employment, stating they were “not re-admitted after closure of the mine in May 1999.” They sued in the High Court claiming wrongful termination and defamation. The High Court dismissed their claims, holding that the strike was illegal under the Industrial Relations Act, 1965 (Act 299). Held: Termination not wrongful. Although the Court of Appeal found that the respondent failed to prove participation of some appellants in the strike and provided weak evidence on alleged misconduct, the employer retained contractual power to terminate employment by notice or payment in lieu under the Collective Agreement. The legality of the strike was therefore irrelevant to the validity of the termination. All entitlements were paid, and the employer needed not assign reasons for termination. Therefore, the termination was lawful. Defamation claim failed. The words “not re-admitted after closure of the mine” were held to be factual and not defamatory. Appeal dismissed. Ratio: In contracts of employment governed by a collective agreement permitting termination by notice or payment in lieu, an employer need not justify termination with reasons. Once notice or its monetary equivalent is given, termination is lawful even if the employer’s stated reasons are unsatisfactory. Decision: Appeal dismissed.

Full Content