Respondents were employees of the Appellant, holding various positions in management. The contracts of employment for some of the Respondents were terminated on 10 October 2011, while the contract of employment for the other Respondents were terminated on 7 November 2011. The letters of termination stated that the Respondents had been “retired”, some in accordance with clause 11.3 of the conditions of services for non-represented staff and others in accordance with section 28 of the Local Authorities Superannuation Fund Act, Cap 284. The Respondents were paid benefits under a redundancy clause in the Appellant’s conditions of service. The Respondents came to know about their redundancies and the immediate replacement of their positions by new appointees at a general meeting addressed by then new Managing Director. The Respondents were paid their terminal benefits which according to the Respondents were not calculated in accordance with the Appellant’s conditions of service under which they were serving. The Lower Court found for the Respondents and the Appellant has now appealed the Lower Court’s decision.
Held:
1. That a payment in lieu of notice, is a payment made to an employee when the employment is terminated without notice.
2. That an allowance may appear on an employee’s last payslip but if it is not one listed in the conditions of service it cannot be included when calculating the redundancy package.
3. The 13th cheque is a gratuitous payment and not a condition of service which an employee can claim as a matter of right.
4. The Respondents were entitled to damages for breach of employment contract because redundancy was used only as a way of getting rid of them.
5. A party to proceedings in the Industrial Relations Court can only appeal on points of law or on points of mixed law and facts.
