Where it is proved that a contract of employment was terminated unlawfully, whether the employee should be re-instated or compensation should be paid is to be decided by the labor dispute settlement tribunal as per article 43(2) of the labor proclamation.
Accordingly the court shall not order for re-instatement of the employee where it believes that the continuation of the particular worker-employer relations, by its reinstatement is likely to give rise to serious difficulties.
During a suit initiated in the Federal First Instance Court an employee that has been working as a security guard argued his contract of employment was terminated unlawfully that he should be reinstated or be paid compensation. The lower court decided that the contract of employment was terminated unlawfully but dismissed the defendant’s claim of reinstatement and ordered payment of compensation.
Both parties appealed to the Federal High Court, the court cancelled the appeal of he applicant and accepted the appeal of the defendant and it decided the defendant be reinstated with the payment of 8 months of wage.
The Federal Cassation Bench analyzed the issue at hand and the nature of work of the defendant. Since the nature of employment of the defendant mainly focuses on the protection of property and ensuing peaceful environment for all, the reinstatement of this employee is likely to give rise to serious difficulties. Hence the cassation court argued the decision of the Federal High Court is not in consideration with the above fact.
Having stated the bench dismissed the High Court’s decision.
So, one can infer from the above suit, a court shall not order for re-instatement of the employee where it believes that the continuation of the particular worker-employer relations, by its reinstatement is likely to give rise to serious difficulties.
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