Okrah Vrs Agricultural Development Bank [2016] GHASC 73 (9 March 2016)

Okrah Vrs Agricultural Development Bank [2016] GHASC 73 (9 March 2016)

Damages for wrongful dismissal are to be calculated based on the salary and benefits the employee would have earned during a reasonable period (here, fifteen months) after dismissal, not up to the date of judgment or based on current salaries. Extraneous factors such as family size or failed prosecution are irrelevant to the computation. The award of three months' salary in lieu of notice is restored, and interest is to be paid on the accrued salaries and allowances from the date of the High Court judgment to the date of this judgment.

Citation
[2016] GHASC 73
Parties
Plaintiff/respondent/appellant: Moses Okrah; Defendant/appellant/respondent: Agricultural Development Bank
Court
Supreme Court
Jurisdiction
Ghana
Judgment Date
9 March 2016
Procedural Posture
Civil Appeal / Final Appellate Judgment (supreme Court)
Outcome
appeal allowed in part
Legal Topics
Wrongful Dismissal, Damages, Mitigation of Loss, Assessment of Damages, Employment Benefits
Source Language
English
Employment Law Contract Law Wrongful Dismissal Damages Mitigation of Loss Assessment of Damages Employment Benefits

Case Brief

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Parties

Moses Okrah

Plaintiff/respondent/appellant

Agricultural Development Bank

Defendant/appellant/respondent

Procedural Posture

Civil Appeal / Final Appellate Judgment (supreme Court)

Legal Issues

  1. 1 What is the appropriate measure and quantum of damages for wrongful dismissal?
  2. 2 Should damages be calculated based on current salaries or at the time of dismissal?
  3. 3 Was the reduction of damages by the Court of Appeal justified?

Ratio Decidendi

Damages for wrongful dismissal are to be calculated based on the salary and benefits the employee would have earned during a reasonable period (here, fifteen months) after dismissal, not up to the date of judgment or based on current salaries. Extraneous factors such as family size or failed prosecution are irrelevant to the computation. The award of three months' salary in lieu of notice is restored, and interest is to be paid on the accrued salaries and allowances from the date of the High Court judgment to the date of this judgment.

Court Disposition

appeal allowed in part

Orders

  • Appellant to be paid salary and allowances for fifteen months from 6th April 1999 based on rates at time of dismissal.
  • Appellant's SSNIT and provident fund contributions for fifteen months to be paid to SSNIT and as accrued benefits.