a) Explain the following terms related to employment law: “Contract of Service” and “Contract for Services”. (8 marks)
View Solution
- Contract of Service
The Labour Act, 2003 ACT 651 defining “Contract of Employment” means it to be Contract of Service whether express or implied, and if express whether oral or in writing. Contract of service relates to a working situation where one is an employee or a worker working for an institution in which that worker or employee is either told what to do and how to do it or the institution employs a skilled professional worker or employee into his service. The employee/worker has certain advantages such as being paid salary, taxes are deducted from source and his employer will be liable for his tort arising from the normal course of duty. - Contract for Services
Contract for services relates to a working situation where a person works on his own, runs his own business and will work for a person who requires his services. Such a person pays his taxes on his own, files his taxes and is liable for his own tort and provision of his own tools.
b) You are confronted with a case where two employees’ appointments had been terminated in a private company. One of the employee was sacked for participating in labour agitations against the employer having worked for 2 months under an oral engagement by the company.
The other employee’s appointment in the same company was terminated because the employee absented himself from work for a day since he was severely injured and his hospital attendance was duly certified by a recognized medical practitioner.
Required:
i) State TWO orders that the Labour Commission may give to the private company, in favour of the affected employees/workers. (6 marks)
View Solution
i) Section 64 of the Labour Act, 2003 ACT651 provides for the following solutions:
- The employer will be ordered to re-instate the employee from the date of the termination of the employment.
- The employer will be ordered to re-employ the employee in the work for which the worker was employed before the termination, or
- Re-employ the employee in any other reasonably suitable work on the same terms and conditions enjoyed by the worker before the termination, or
- The employer will be ordered to pay compensation to the employee.
(Any 2 points)
ii) Will both employees have the same cause of action? (2 marks)
View Solution
Both workers will have the same cause of action as they acted within their rights.
c) State FOUR rights of an employer under the Labour Act, 2003 ACT 651. (4 marks)
View Solution
Section 8 of ACT 651 provides for the rights of the employer as follows:
- Employ a worker, discipline, transfer, promote and terminate the employment of the worker;
- Formulate policies, execute plans and programmes to set targets;
- Modify, extend or cease operations;
- Determine the type of products to make or sell and the prices of its goods and services.