Background of the case:
In the case, the Appellant argued that the trial court’s award of 10 months’ salary as compensation for unfair termination was excessively high, given that the Respondent had worked for only 2 years and 9 months.
The Respondent, however, contended that since the Appellant did not challenge the trial court’s finding on termination and fairness, the award was reasonable and should stand.
The appellate court emphasized that compensation must be reasonable and assessed with moderation under Section 49(4) of the Employment Act.
Analysis:
While acknowledging that 10 months’ compensation seemed high compared to similar cases, the court found no evidence that the Respondent contributed to the termination.
It further noted that the maximum award of 12 months’ salary is not solely based on length of service but on the reason and circumstances of termination.
Court's determination:
The court recognized that unfair dismissal can have severe consequences, whether for a long-serving employee or one who recently took a career risk by joining a new employer.
Read the full case at here
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