Wednesday 19 September 2012

Employment Law/Labour Law Cases Summary 2012


AUBEELUCK  v PERLE DE LA SAVANNE 2012 SCJ 75
In a plaint entered before the Industrial Court, the appellant averred that he had been in continuous employment of the defendant as a ticket examiner since the 14 January 2001. His employment was summarily terminated without valid cause or justification. He claimed wages in lieu of notice and severance allowance at the punitive rate.

The Magistrate held that the employer was entitled by virtue of its inherent power of a “chef d’entreprise” to terminate the employment of the appellant with payment of severance allowance at the normal rate. She then computed the compensation due to the appellant at that rate.

We are of the view that the learned Magistrate was perfectly entitled, on the evidence available, to reach the conclusion that the contract of the appellant was of indeterminate duration.

The appellant was cross-examined as to alleged harassment of other employees, but this allegation was vehemently repudiated by the appellant. At any rate, he was never the subject of disciplinary proceedings for such alleged misconduct. His allegation that two ticket examiners were employed after his contract was terminated remained unchallenged.

We are of the view that although the learned Magistrate made a correct appreciation of the evidence, she wrongly awarded severance allowance only at normal rate. We consequently order the respondent to pay the appellant severance allowance at six times the normal rate.

CHAN MAN SING v WING TAI CHONG CO. LTD 2012 SCJ 82
The questions now are: (i) whether the learned Magistrate was right in her findings that the words uttered by the appellant constituted misconduct; (ii) whether the appellant’s dismissal was warranted; and (iii) whether severance allowance, be it at normal or punitive rate, was not due.

Whilst not every misconduct will justify a dismissal, each case must be decided on its own merits and each misconduct must be viewed in the specific context in which it occurred and in the light of the nature of the relationship existing between the employer and employee. Also, whether in any given situation an employer cannot in good faith do otherwise than dismiss a worker for misconduct is a question of fact.

In the present case, the appellant, a salesgirl/shop assistant whose duties were inter alia to be polite and at the service of customers, has conceded having been the author of unpleasant remarks made to a customer. Given that the respondent’s business was largely depended on customers, it was certainly not to its advantage and interest if its employees were to be renowned for their rudeness and unwelcoming attitude. Irrespective of whether the remarks of the appellant were directed at a specific customer or not the stark fact remains that they were made within the hearing of customers present at the material time and one of them indeed took them to have been addressed at her. In the circumstances of the present case, the appellant’s behavior can hardly be said not to amount to misconduct.

In addition, the respondent’s decision, endorsed by the learned Magistrate, that the appellant was a disruptive element who had by her conduct which was not in accord with the “bon fonctionnement” of its business breached the bond of trust in the employer/employee relationship leaving it with no alternative course of action but to put an end to her employment in the interest of the undertaking, is valid and sustainable.

We, however, pause here to remark that in her judgment the learned Magistrate used the word serious and gross to qualify the misconduct of the appellant. Whilst we agree with the learned Magistrate that the behaviour of the appellant did constitute an act of misconduct, we are, however, of the view that it was neither “une faute legère” nor “grave”, but a serious one warranting the termination of the appellant’s contract of employment, but, with payment of severance of allowance at the normal rate. We, therefore, do not see any merits in any of the complaints of the appellant that the respondent had unfairly and arbitrarily terminated her contract of employment.

We have, therefore, not seen any compelling reason justifying the complaints of the appellant that the respondent had unfairly and arbitrarily terminated her contract of employment nor that the learned Magistrate’s appreciation and analysis of the evidence and findings were erroneous except in so far as payment of severance allowance is concerned.

MINISTRY OF LABOUR v GOORROOCHURN 2012 SCJ 110
We agree with the submission made in the respondents’ skeleton arguments that a “lien de préposition” did exist, by virtue of section 15(1) of the Industrial Court Act, between the defendant and the labour officer who conducted the case before the Industrial Court. The provision in that enactment enabled the defendant to “institute such civil or criminal proceedings as he thought necessary” and to “conduct such proceedings” in the Industrial Court “for, or in the name of, a worker.” Indeed all proceedings before the Industrial Court are conducted in the name of the appellant (then defendant) by a labour officer who is his subordinate such that the “lien de préposition” thereby exists and does not have to be specifically established by evidence.

In the circumstances of the present case, the finding of the learned Magistrate that the labour officer had committed a “faute lourde” by his failure to cross-examine the private detective was solely based on the value of cross-examination generally and not on the importance of such cross-examination in that particular case. The evidence on record fell short, in our view, of establishing to the required standard of proof, that cross-examination was important or really called for at all.

SAGAR HOTELS & RESORTS LTD. v SEWDIN 2012 SCJ 122
This is an appeal against the judgment of the learned Magistrate of the Industrial Court ordering the appellant, then defendant, to pay to the respondent, then plaintiff, severance allowance at the punitive rate for unjustified dismissal as the employee was not given the right to a hearing before a disciplinary committee before being dismissed.

It has been established that the hearing as mentioned in the Labour Act (repealed) need not be in the manner and rigorous formalism as in a Court of law.

Section 32(2) (a) of the Act provides that “No employer shall dismiss a worker unless he has afforded the worker an opportunity to answer any charges made against him and any dismissal made in contravention of this paragraph shall be deemed to be an unjustified dismissal”.
It follows, therefore, that an employer who is contemplating to terminate the employment of an employee because of suspected gross misconduct must by virtue of section 32(2) (a) of the Act provide a hearing otherwise any dismissal would be deemed to be unjustified, vide Bundhoo v Mauritius Breweries [1981 MR 157]. However, it is now well settled that a hearing under this section of the Act need not be conducted with the stringent formality that is expected in a Court of law where the standard of proof, evidential and procedural sanctity has to be strictly followed. The Court has in the case of S.V. Goinden v Yee Chuin Koon &Cie [2003 SCJ 94] reaffirmed what has been held in Tirvengadum v Bata Shoe (Mauritius) Co. Ltd [1979 MR 133], Mamode v De Speville [1984 SCJ 172] and Maunick v Undersea Walk Ltd [2003 SCJ 27] that “the hearing is not required to be conducted with the formality and all the exigencies, whether procedural or evidential, appropriate to a Court of law or Tribunal”.

However, it is important to note at this juncture that although a hearing under this section of the Act need not be conducted with all the formality and exigencies of a Court of law, such a hearing must not be meant to be a mere ritual simply to enable the employer to dismiss the employee without really informing the employee of the charges against him and without affording him an opportunity to rebut them.

In the case of Cie Mauricienne d’Hypermarchés v N.P. Rengapanaiken [2003 SCJ 233], it was held that “although it is a well settled principle that a hearing for the purposes of section 32 of the Labour Act, is not required to be ‘conducted with the formality and all the exigencies whether procedural or evidential appropriate to a Court of law or Tribunal’, it does not follow that a hearing is merely meant to be a procedural ritual to enable the worker to give his explanation to the charges before his dismissal. Where gross misconduct is being alleged, as in the present case, there must surely emerge at the hearing evidence which is sufficiently substantial and reliable in order to establish misconduct which would justify the summary dismissal of the worker”.

 In S.V. Goinden (supra), stress was laid on to the fact that “the context in which the hearing took place as well as the testimony of the appellant himself makes it absolutely clear that the appellant was aware of the fact that the committee which he was to attend was in fact a disciplinary committee”.

In the case at hand, it is clear that when the respondent was made to confront the VIP guest and attended the meeting which took place in the office of the Human Resources Manager, he had no knowledge at all that such an exercise was of such a character as to eventually lead to hissummary dismissal. It was held in the case of Robert Tranquille v P.R. Limited [1996 SCJ 366], that “the hearing provided for by section 32(2) (a) of the Act is of course not a formal hearing. It cannot be equated to a hearing in the judicial sense. But a minimum of procedural requirements should be observed so that what takes place is conductive to the notion of a fair hearing. This would require that a reasonable opportunity be given to the employee to answer charges which are clearly explained to him, preferably in writing”.

In the present case, given the circumstances which had led to the respondent’s dismissal as explained by the latter and which the trial Court chose to accept, we consider that the learned Magistrate cannot be faulted for reaching the conclusion that “the plaintiff was not given an adequate opportunity to put questions to the guest and to give his full explanations”.

Even if on record, the facts show that there was enough material which prima facie amounted to gross misconduct, we agree with the finding of the learned Magistrate that non-compliance of the statutory obligation to afford the respondent a right to offer his explanation to rebut the prima facie case renders the appellant liable to damages at the punitive rate. There was a duty on the employer to afford the employee an opportunity to put in his version of facts.

HEMISPHERE SUD LTD v CHEVREAU 2012 SCJ 141
…in determining whether or not an act could be termed as one of gross misconduct, the Court has to look at the particular facts and circumstances of the case before it.

SEWTOHUL v FSC 2012 SCJ 208
The case for the Commission was that the employee was dismissed within 7 days of the day on which the Commission became aware of her misconduct by her confession as per her letter and that in these circumstances there was no need for a hearing.

The learned Magistrate found in favour of the Commission that the summary dismissal of the appellant was fully justified having regard to the nature of the acts of misconduct committed by her and in view of her clear admissions in the letter she sent to the Commission.

The two grounds of appeal and the reply of the Commission to the appellant’s skeleton arguments raise the following questions:

1.        Can the appellant raise on appeal the issue that she was notified of the dismissal outside delay in breach of section 32 (1) (b) (ii) (C), if it was not raised at the trial; and
2.        Was the dismissal effected by the Commission within the statutory delay of 7 days of the day on which it became aware of the misconduct.

The first question must be answered in the affirmative as this is a matter of law. In the present case, it cannot be said that the matter was not canvassed or considered by the learned Magistrate who could not have decided whether the dismissal was unjustified unless he had also considered whether the dismissal was effected within the time limit. Besides, one of the two grounds specified under section 32 (1) where an employer cannot dismiss a worker is if the dismissal is for alleged misconduct where the two conditions prescribed by the statute are not satisfied. These two requirements are described in section 32 (1) (b) (i) and (1) (b) (ii) - that the employer cannot in good faith take any other course, and the dismissal is effected within 7 days of certain occurrence. In the present case, the dismissal must take place within 7 days of the day on which the employer became aware of the misconduct.

It is therefore important to reproduce the relevant parts of section 32 entitled “Unjustified termination of agreement”:

“(1) No employer shall dismiss a worker
(a) by reason only of the worker’s filing in good faith of a complaint, or participating in a proceeding, against an employer involving alleged violation of a law;
(b) for alleged misconduct unless
(i) he cannot in good faith take any other course; and
(ii) the dismissal is effected within 7 days o f
(A) where the misconduct is the subject of a hearing under subsection (2), the completion of the hearing;
(B) where the misconduct is the subject of criminal proceedings, the day on which the employer becomes aware of the final judgment of conviction; or
(C) in every other case the day on which the employer becomes aware of the misconduct.
2 (a) No employer shall dismiss a worker unless he has afforded the worker an opportunity to answer any charges made against him and any dismissal made in contravention of this paragraph shall be deemed to be an unjustified dismissal.
(b) The worker may, for the purpose of paragraph (a), have the assistance of a representative of his trade union, if any, of an officer or of his legal representative.” (Emphasis added).

It is therefore obvious that no dismissal which does not satisfy the two conditions under subsection (1) (b) (i) and (ii) can be effective or justified. Vide also Mauvilac Industries Ltd v Mohit Ragoobeer [2007 UKPC 43]. Ground 1 therefore fails.

Was the dismissal effected within 7 days of the day on which the Commission became aware of the misconduct?

It is not disputed that the Commission dismissed the appellant for gross misconduct and learned Counsel for the appellant does not suggest that the Commission could in good faith have taken any other course. However, relying on section 32(1) (b) (C) of the Act, Counsel submitted that the dismissal is unjustified since the Commission did not dismiss and notify the dismissal to the appellant within the statutory delay of 7 days of 5 December 2007, the day on which, according to him, the Commission become aware of the misconduct.

To consider the facts of the present case, which admittedly falls within section 32 (1) (b) (C), as being under section 32 (1) (b) (B) will defeat the provision of the section which in essence aims at preventing an employer from terminating the employment of a worker for misconduct without giving him an opportunity to answer the charges against him. As was pointed out by the Privy Council in Mauvilac, (supra), by virtue of section 32 (2), even if the two conditions are satisfied, that is, (i) that the employer could not take any other cause and (ii) the worker was in effect dismissed within 7 days, the dismissal will be “deemed to be unjustified” if before the dismissal for misconduct becomes effective, the worker is not given an opportunity to answer the charges and state his case, with the assistance of a relevant person representing him.

It cannot be overlooked that section 32 (2) (a) applies to all dismissals, irrespective of whether the dismissal is under category A, B or C specified in section 32 (1) (b) for alleged misconduct. As also pointed out by the Privy Council in Bissoonauth Premchandra v The Sugar Fund Insurance Board [2005 PRV 68], the purpose of section 32 (2) (a) is to give an employee who runs the risk of being dismissed a substantive right to make out a case to his employer as to why he should not be dismissed. Whereas section 32 (1) (b) (ii), being merely procedural, imposes a time limit on the employer within which he should exercise the right to dismiss the employee. It was emphasised that an employer cannot dismiss an employee for an alleged misconduct “unless he has afforded the worker an opportunity to answer any charges made against him”.

We consider that the present case comes within category C where the appellant, after having been given an opportunity to promptly answer the charges made against her by making written or oral representations, chose to make representations by letter which reached the Commission on 11 December 2007 in which she made a full confession in answer to the charges, expressing apologies and promising not to do so in the future. She further pleaded to be allowed to keep her job, giving the personal circumstances in which she was when she committed the gross misconduct.

Thereupon, the Commission cannot be faulted for having taken the view that there was no need for a hearing, and this is not contested by the appellant. Considering that the charges were serious, the Commission rightly proceeded, within 7 days therefrom, to summarily dismiss the appellant and also notified her of the dismissal on 17 December 2007.

JAGESSUR v NTC 2012 SCJ 219
It is a settled principle that what amounts to gross misconduct would depend on the particular circumstances of each case.

NAIK v THE NATRESA 2012 SCJ 229
In the present case, the unilateral decision to terminate the plaintiff’s employment forthwith, without any formal charges preferred against him, without hearing him and giving him an opportunity to answer any charges against him and without any valid reason for his dismissal, was clearly in breach of the elementary rules of natural justice and constituted an unfair and unjustified dismissal both under our Civil Code and under s 32 of the Labour Act 1975 (vide Bissoonauth v. The Sugar Fund Insurance Board (Mauritius)[2007 UKPC 17], [2005 PRV 68]; D. Panday v. The Judicial and Legal Service Commission [2007 PRV 33], [2008 MR 371]; J. Pareathumby v. M/S Bowman International Sports (Ltd) Mauritius [2009 SCJ 120]; Pamplemousses/Riviere Du Rempart District Council v. Hurbungs [2010 SCJ 382]; Captain A. S. Fraser v. Air Mauritius Ltd [2011 SCJ 373]).

The burden rested on the defendant to prove on a balance of probabilities that the dismissal was justified (vide Harel Freres v. Veerasamy and Anor [1968 MR 218]; Ramen v. Desire [1986 MR 216]; The Pamplemousses/ Riviere du Rempart District Council v. D. Hurbungs [2010 SCJ 382]). The defendant has clearly failed to do so.

Under our legislation, it was open to the plaintiff to bring an action either under the Civil Code for breach of contract or tort or under the Labour Act 1975. The plaintiff, having chosen the present forum, is entitled to such damages which he has suffered as a result of the wrongful and unlawful dismissal which constitutes a ‘faute’ towards him. He is clearly entitled to obtain payment of what he would have earned up to the end of his contract and to moral damages sustained by him as a result or direct consequence of the termination of the contract.

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