STUDENT ID; 220027935 (GROUP A)

QUESTION: In the Supreme Court decision of Bannerman-Menson v. Ghana Employers

Association, it was held that an employer does not need to give reasons for the termination of
employment contract. Discuss the decision of the court and state whether or not you agree with
that decision.

ANSWER

In the case of Bannerman-Menson v. Ghana Employers Association, the plaintiff who was
appointed the executive director of Ghana employers association. Bannerman-Menson, the
plaintiff, took eighty days leave to enable him attend to his health. While on leave, the
association that is the respondent took a decision to retire him from his position with a six
month notice. The six months’ notice would be commuted to cash and paid to him with the rest
of his accumulated leave. The appellant was dissatisfied with the decision of the respondents
and filed a court case. During the court judgement, it was held by the court that Ghana
Employers’ Association, the respondent, were not under any obligation to give the appellant
reasons for the termination of the employment contract. What was important was the mutual
agreement of the parties that the contract could be terminated by giving six months’ notice.

I do agree with decision of the court with the reason explained below. The employer’s right to
terminate a contract is backed by common law and statute. The common law principle of
mutuality in contract support the right of the employer to terminate the employment contract
without any reason as was applied in case of Consolidated African Selection Trust Ltd v.
Nketiah. Also there should be a mutual agreement with the consent of both party to terminate
an employment contract as elaborated under section 15 of the Labour Act. The court gave the
decision that the contract was terminated by the employer without giving any reason but the
employers considered the mutual agreement they had with employee in relation to how the
contract should be terminated.