By FAUSTINE KAPAMA, Judiciary
THE Court of Appeal has saved the Muhimbili National
Hospital (MNH) from compensating Accountant Linus Leonce about 12 months’
remuneration for terminating his employment services.
Justices Gerald Ndika, Ignas Kitusi and Sam
Rumanyika reached into such a decision after allowing an appeal the MNH, the
appellant, had lodged to fault the decision of the High Court’s Labour
Division, which had ruled in favour of the Accountant, the respondent.
“We think the labour dispute was misconceived. (….)
we quash the impugned decision and set aside the resultant orders. We make no
order as to costs because the appeal arises from a labour dispute,” they
declared.
The justices noted that the appellant notified the
respondent of its proposal for termination of his employment with immediate
effect following frustration of the contract of service for which he was
invited to consider and, if accepting the terms, indicate it in writing.
They further observed from the record that the respondent
accepted the offer of mutual termination of the contract, acceded to the
proposed termination upon the appellant's undertaking to pay the proposed
package within two weeks of his reply and was accordingly paid.
“It follows that with all that undisputed, by
necessary implication on such terms the respondent agreed the appellant's offer
for termination and received the agreed terminal benefits. In other words the
appellant did all the needful in compliance with section 2 (1) (a) of the Law
of Contract Act,” they said.
The justices were of the firm view that the Common
Law doctrine of estoppel bars the parties, in this case, the respondent from
running away from their previous freely made choices and bars them denying
their previous freely made choices.
According to records of appeal, the appellant had
wanted to employ a senior accountant but instead of advertising for that post,
it advertised for an accountant vacancy which the respondent successfully
applied for and was recruited.
He worked with the appellant until on June 24, 2014
but all along he never got paid any remuneration. The reason assigned by the
appellant for not paying him any remuneration was that the Central
Establishment had not sanctioned the employment.
Vide a letter the appellant terminated the
respondent's employment based on certain terms. Accordingly, the respondent
replied by a letter dated June 27, 2014 and was then paid terminal benefits.
On March 3, 2017, the respondent instituted an
unfair termination claim in the Commission for Mediation and Arbitration (CMA) for
Dar es Salaam at Dar es Salaam alleging that the appellant had terminated his
employment without following the applicable procedure.
The CMA found in his favour. Consequently, it
awarded him 12 months' remuneration as compensation. On revision, the High
Court upheld the award. Having not satisfied with such decision, the appellant
decided to take the matter to the Court of Appeal.
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