GHANA TEXTILE PRINTING CO LTD V. ANKUJEAH AND OTHERS

Wood JA.

Following the restructuring of the defendant appellant company (hereinafter referred to as the appellants) in 1994, the plaintiff-respondents (hereinafter referred to as the respondents) were declared redundant and paid severance benefits in accordance with the prevailing collective agreement (exhibit A). Each respondent therefore became entitled to: “Two months consolidated basic pay for each year of service, effective 1 January 1991 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 filed suit in the High Court, Tema claiming the following reliefs:

“(1) Payment of each plaintiff’s severance compensation with effect from the date each plaintiff commenced work with the defendant company as employed up to 31 December 1990.

(2) Interest at prevailing bank rate from 1 February 1994 to date of payment.

(3) A…