ALFRED TETTEH ANNAN V. GOLD ROYAL ENTERTAINMENT CO. LTD.
by JUSTICE LAURENDA OWUSU
Jurisdiction
High Court
Judge
JUSTICE LAURENDA OWUSU
Catalog Type
Case
Judgement Date
Apr 11, 2016
Summary
Labour Law – Contract of Employment – Wrongful Termination – Damages Facts The plaintiff was employed by the defendant as a Dealer Inspector and claimed that he was subsequently promoted to the position of Pit Boss. Following allegations of theft involving another employee, the plaintiff was demoted and later issued with a letter terminating his employment with immediate effect. The plaintiff contended that both the demotion and termination were unlawful and sought declarations, outstanding salary, compensation for wrongful termination, legal fees, and costs. The defendant denied that the plaintiff was ever substantively promoted to Pit Boss and maintained that the termination was lawful and in accordance with the conditions of service. Issues Whether the plaintiff was, at the time of termination, a Pit Boss or a Dealer Inspector. Whether the termination of the plaintiff’s employment was wrongful. Whether the plaintiff was entitled to the reliefs claimed. Holding 1. The plaintiff was a Dealer Inspector at the time of termination, no credible evidence having been adduced to prove a substantive promotion to Pit Boss. 2. The termination of the plaintiff’s employment was wrongful and unlawful, as it was effected without notice and on allegations imputing criminal conduct without due disciplinary process. 3. The plaintiff was entitled to damages for wrongful termination and part of his monetary claims, but not to legal fees.
Full Content
JUDGMENT
OWUSU, J.
By an amended Writ of Summons filed in the Registry of this Court the Plaintiff is claiming against the Defendant the following reliefs:
1. A Declaration of the Court that the demotion and termination of the Plaintiff as a Pit Boss by the Defendant was unlawful.
2. An order of the Court that the Plaintiff be paid his outstanding salary as Pit Boss from March, 2014 at the rate of GH₵900.00 per month, plus interest at the commercial bank rate thereon, until date of final payment.
3. Compensation of GH₵10,000.00 for Plaintiff’s arbitrary, capricious and wrongful termination.
4. Legal fees comprising of a consultancy fee of GH₵500.00 plus 15% of all sums paid to the Plaintiff.
5. Costs plus any additional reliefs that this honorable Court might deem fit.
SUMMARY OF CASE
THE PLAINTIFF’S CASE
By an accompanying Statement of Claim and the Witness Statement of Plaintiff filed on the 4th of November 2015 the Plaintiff’s case is that he was until 17th March, 2014 an employee of the Defendant. According to him he was appointed on the 4th of January, 2013 as an Inspector and after successfully working for ten (10) months he was promoted to the position
of Pit Boss. It is Plaintiff’s case further that on the 15th of February, 2014, one of the Defendant’s employees by name Patricia Asante was alleged to have stolen gambling chips belonging to the Defendant and he and another employee were linked to it. After investigation, he was ordered to go back to work but he received a letter dated 22nd February, 2014 demoting him to the lesser position of Dealer Inspector from Pit Boss. On the 17th of March, 2014, another letter was received from the Defendant, this time terminating his employment immediately. The Plaintiff maintains that the termination of his appointment for no justifiable reason is unlawful.
THE DEFENDANT’S CASE
By its amended Statement of Defence and the Witness Statement of one Richard Fairweather Sowah filed on the 12th of November 2015, the Defendant’s case is that Plaintiff was employed as a Dealer Inspector and was never promoted to the position of a Pit Boss. According to the Defendant, for a specific period during his period of employment and throughout the said period Plaintiff was undergoing training as a Pit Boss and was requested to work as an intern Pit Boss. Plaintiff was never made a substantive Pit Boss. It is their case that whiles undergoing training as a Pit Boss Plaintiff’s conduct was unsatisfactory hence he was issued with a warning letter on or about 14th February 2014 but since his performance did not subsequently improve he was requested to revert to his former position as a Dealer Inspector but was not demoted. It is their case further that the termination of Plaintiff’s appointment is justifiable and in accordance with his conditions of employment and the Defendant’s rules and regulations.
ISSUES FOR TRIAL
i. Whether at the time of termination of Plaintiff’s appointment he was a Pit Boss or Dealer Inspector.
ii. Whether or not termination of Plaintiff’s appointment was wrongful.
iii. Whether or not the Plaintiff is entitled to his claim against the Defendant.
iv. Any other issues raised in the pleadings.
ANALYSIS OF THE ISSUES IN THE LIGHT OF THE LAW AND FACTS
∙ Whether at the time of termination of Plaintiff’s appointment he was a Pit Boss or Dealer Inspector.
Although it is his case that in the course of his employment he was promoted to the position of a Pit Boss there is no evidence of such promotion except the evidence of the Defendant’s witness under cross examination. This is how cross examination went:
“Q. Are you also aware that the Plaintiff was promoted to the position of Pit Boss?
A: My Lord that promotion was made by the Board of Pit Bosses including me.
Q: Are you aware that he earned this promotion after he had served his probation period?
A: My Lord, I was also promoted after my probation that was in June, 2013 and from that time to the time he was promoted, he had served a probation as an Inspector Pit Boss till my salary was moved up to GH₵1,400.00 as a Pit Boss.”
At paragraph 7 of his Witness Statement, admitted in evidence as his Evidence in Chief, this same Witness had this to say:
“The Plaintiff was employed as an Inspector but was subsequently made to undergo training as a Pit Boss. During that period he was an intern and not a substantive Pit Boss. The letter of appointment dated 1st June 2013, states that his basic salary plus allowances and compensation was One Thousand, One Hundred and Twenty Ghana Cedis (GH₵1,120.00). The basic salary plus allowances of a Pit Boss at the time was in excess of the amount that the Plaintiff was being paid so he could not have been a substantive Pit Boss”.
The evidence of such a witness cannot be relied upon especially where no reasons have been given for these inconsistencies.
Counsel for the Defendant applied to the Court to treat the said witness as a hostile witness on the basis that he was contradicting his Written Statement and same was granted. In her written address to the Court, in paragraph 22, counsel for the Defendant referred to the case of IN RE OKINE (DECD); DODOO AND ANOTHER v. OKINE AND OTHERS [2003-2004] 1 SCGLR @ page 582 and prayed the Court not to rely on the evidence of the said witness in arriving at a decision.
In the case of OBENG v. BEMPONG [1992-1993] GBR part 3 @ PAGE 1027 the Court of Appeal held that “inconsistencies, though individually colorless, may cumulatively discredit the claim of the proponent of the evidence.”
Not much weight would be attached to this evidence. In the absence of any other evidence from the Plaintiff’s camp in prove of his assertion that he was a Pit Boss at the time of the termination of his employment, the Court cannot make findings of fact in this regard. Exhibit A and Exhibit 1, the Plaintiff’s appointment letter states that he was appointed as an Inspector. Accordingly the Court finds as a fact that at the time Plaintiff’s appointment was terminated, he was a Dealer Inspector.
∙ Whether or not termination of Plaintiff’s appointment was wrongful.
An employer, just like the employee could terminate the contract of employment at any time. In the case of ASHUN v. ACCRA BREWERY LTD [2009] SCGLR 81 the court held that:
“a contract of employment is not necessarily a contract till retirement age. In other words, a contract of employment, though it may be for an indefinite period, does not mean life employment.”
In the case of CHATLANI v. HAROUTUNIAN [1974] 2 GLR 263, the court held that the employer, like the employee, could indeed terminate the contract of employment at any time provided only that the appropriate notice requirements are observed. I again refer to the case of KOBEAH AND OTHERS v. TEMA OIL REFINERY; AKOMEA-BOATENG V. TEMA OIL REFINERY (CONSOLIDATED) 2003-2004 SCGLR 1033 @ 1039.
Section 15 of the Labour Act, 2003 [Act 651] headed “Grounds for Termination of Employment” among others, provides grounds on which an employer may terminate the contract of employment between him and his employer.
It is trite law that where parties have entered into a contract or an agreement and same has been reduced into writing it is from that document that the court must ascertain the intention of the parties and to construe the contract in terms of the document. Where an employee’s employment is terminated in breach of these contractual provisions or in breach of the provisions in the Labour Act regarding termination, the termination is wrongful.
Exhibit C is the letter terminating the Plaintiff’s employment. It is dated 17th March, 2014 and the termination is effective immediately. It gives the reason for the termination of Plaintiff’s employment as:
“1. Your name was mentioned in the theft case that went on few weeks ago…”
Section F of Exhibit A and 1, headed “Notice of Termination and Dismissal” provides that either party may by giving notice in writing seven days in advance terminate the agreement or in lieu of notice by paying or forfeiting the salary for the period of notice. Again it states that if serious mistakes are made in the company, the offending employee would be given a final written warning to leave the company immediately. This section does not go on to list the so called ‘serious mistakes’ although the reason given for the termination has criminal connotations. In paragraph 23 of the written address of counsel for the Defendant, she submitted that Plaintiff had admitted that under his watch as an intern Pit Boss there were incidents of stealing. In law, there is a difference between dismissal and termination. I refer to the case of NUNOOFIO v. FARMERS SERVICES CO. LTD [2007-2008] SCGLR 926 at 940 where Sophia Adinyira JSC stated that:
“...‘dismissal’ and ‘termination’ though both have the same effect of bringing to an end a contract of employment, yet they may not be synonymous as the legal consequences are different in terms of a contract of employment. A dismissed employee stands to lose all his entitlements; whereas an employee whose contract of employment is terminated takes away all his entitlements.”
In his book LABOUR LAW at pages 304 and 305, the learned author James Odartey Mills draws a distinction between the two. A dismissal is a discharge of the contract of employment by the employer with justification, and which justification often imputes or connotes an element of misconduct on the part of the employee. This is against a termination which is simply an expression of the terminating party’s unwillingness to continue with the employment relationship with the other party.
Unlike a mere discharge of the contract of employment, in the case of a termination of appointment which may not go with reasons, a dismissal on the other hand usually requires the reason or reasons for the dismissal to be stated.
Additionally, a termination can be at the instance of either the employee or the employer but a dismissal can only come from the employer. Whereas a termination requires specific periods of notice to be given to the other party, in a dismissal there are no such specific requirements in law and therefore it may or may not be given depending on the circumstances. In terminations the periods of notice are paid for where the party terminating prefers not to give any notice and this payment can be enforced, in a dismissal the notice that is not given may not be paid for and is also generally not enforceable against the employer.
Furthermore, whereas in a termination the employee receives all his terminal benefits and privileges, in a dismissal the employee usually loses most of these with the exception of arrears of salaries and allowances accrued prior to the dismissal.
Also because a dismissal connotes misconduct or wrongdoing, an employee accused of such misconduct has to be taken through internal disciplinary processes to establish his guilt or otherwise before any action is taken but this requirement is not mandatory in the case of terminations unless a contract of employment dictates otherwise.
These two words are however often used interchangeably. Though Exhibit C is headed “Letter of Termination and “Termination of Employment”, evidence suggests that the Plaintiff was dismissed. This is because a reason was given for the termination and the reason imputes criminality. Again no notice was given and Plaintiff’s employment was terminated immediately.
Contrary to evidence that Plaintiff’s employment was terminated because under his watch, incidents of stealing took place, the reason given in his termination letter associates him to the theft. The Defendant has failed to show any justification for the discharge of the contract of employment. I find as a fact that termination of Plaintiff’s appointment was wrongful and unlawful.
∙ Whether or not the Plaintiff is entitled to his claim against the Defendant.
A Declaration of the Court that the demotion and termination of the Plaintiff as a Pit Boss by the Defendant was unlawful.
Based on the above findings of fact, the Court hereby declares that the termination of the employment of the Plaintiff as a Dealer Inspector is unlawful as there is no evidence that Plaintiff was ever promoted to a Pit Boss.
An order of the Court that the Plaintiff be paid his outstanding salary as Pit Boss from March, 2014 at the rate of GH₵900.00 per month, plus interest at the commercial bank rate thereon, until date of final payment.
Under cross-examination Plaintiff said he had not rendered any services for the Defendant since his appointment was terminated. Plaintiff’s appointment was terminated on 17th March, 2014. He can therefore not claim outstanding salary for a period that he was not an employee to the Defendant. He admitted under cross- examination that he was paid his last salary on 28th February, 2014. In the month of March, Plaintiff worked until the 17th of March, 2014 and he is entitled to be paid this outstanding salary.
Compensation of GH₵10,000.00 for Plaintiff’s arbitrary, capricious and wrongful termination.
Damages are generally measured by looking at how much the employee who has been dismissed wrongly or unlawfully has lost as a result of the dismissal. The Supreme Court in the case of KOBI v. GHANA MANGANESE CO. LTD [2007-2008] SCGLR 771 @ 772 held in holding 2:
“In assessing damages for wrongful dismissal, the court must have regard to all the circumstances of the case considered as fair and reasonable……; and bearing in mind that judicial discretion should not be out of joint with the general trend on the matter and the fact that the award of damages in these matters has ranged between two years and one year……”
In the case of ARKORFUL v. STATE FISHING CORPORATION [1991] 2 GLR @ 348, the court held that damages are to be measured by the amount of salary which the employee has been prevented from earning by reason of the wrongful dismissal. Again in the case of BANK OF GHANA v. NYARKO and ANOTHER [1973] 2 GLR 265 the Court of Appeal held that just as an employee of a statutory corporation who has been wrongfully dismissed is entitled to all sums that he would have earned up to the date of judgment, so is an employee of a private organization.
The court hereby awards the Plaintiff damages based on twelve (12) months’ salary at the time of his termination.
Legal fees comprising of a consultancy fee of GH₵500.00 plus 15% of all sums paid to the Plaintiff.
The payment of legal fees results from the client- lawyer relationship. Accordingly this claim fails and is hereby dismissed.
Costs plus any additional reliefs that this honorable Court might deem fit.
The Court hereby awards costs of Five Hundred Ghana Cedis (GH₵500.00) in favour of the Plaintiff.
(SGD)
JUSTICE LAURENDA OWUSU
JUSTICE OF THE HIGH COURT
COUNSEL
NOAH ASOMANY FOR THE PLAINTIFF
YAA GYAKOBO FOR THE DEFENDANT.