[2000]DLCA6473 • July 6, 2000 • Court of Appeal
GHANA TEXTILE PRINTING CO. LTD. vs. SIMON ANKUJEAH & 99 ORS
In 1994, Ghana Textile Printing Co. Ltd. restructured, declaring the respondents redundant and paying severance benefits per a collective agreement effective from 1st January 1991. The respondents claimed that severance pay should be calculated from their respective employment start dates up to 31st December 1990, arguing the collective agreement violated the Labour Amendment Decree, 1969 (NLCD 342). The appellant contended the severance pay quantum was a negotiated matter and that the claims were statute barred.
read moreMRS. WOOD, J.A. Following the restructuring of the defendant appellant Company in 1994, the plaintiff respondents were declared redundant and paid severance benefits in accordance with the prevailing collective agreement. Each respondent therefore became entitled to “Two months consolidated basic pay for each year of service, effective 1st January, 1961 to the date of redundancy”, However, contending that the awards were void, unlawful and of no legal effect, in that they violated the clear, mandatory provisions of the Labour (Amendment) Decree, 1969 NLCD.342, the respondents, severance compensation with effect from the date each plaintiff commenced work with the defendant company as employed up to 31st December, 1990. 2. Interest at prevailing bank rate from 1st February, 1994 to date of payment. 3. An order directing defendants to immediately negotiate the severance compensation with the plaintiffs for the period of service of each plaintiff before 1st January, 1991, failin...