[2008]DLSC6402 • May 7, 2008 • Supreme Court •
FRANCIS ASSUMING & 640 ORS. vs. DIVESTITURE IMPLEMENTATION COMMITTEE.
The respondents were former employees of Achimota Brewery Company Limited (ABC) declared redundant following the government's divestiture of ABC. They contended that under the Labour Amendment Decree, 1969 (NLCD 342), they were entitled to severance pay calculated based on their years of service rather than a flat fourteen months' salary which they had received.
read moreANSAH, J.S.C. This is an appeal against the majority judgment of the Court of Appeal dated 24th November, 2006, dismissing an appeal and affirming a ruling of the High Court. The undisputed facts of this case are that the respondents herein were former employees of the erstwhile Achimota Brewery Company Limited, (called ABC for short). They were declared redundant when ABC was listed for divestiture by the Government. The appellant was the committee that undertook the divestiture. The plaint by the respondents was that on a true and proper interpretation of the relevant legislation, to wit, the Labor (Amendment) Decree, 1969, (NLC 342), they were entitled to be paid severance pay computed at the number of years each had worked with the company, ABC, instead of the fourteen (14) months salary paid to each of them. Thus, the real core issue in this suit was how the severance pay for employees affected by a company divested by the government determined? The appellants posited it w...