Effect of public law protection on the measure of damages
These principles outlined above, however, hold true in relation to only contracts not affected by public law provisions. Ghana Cocoa Marketing Board v Agbettor & Ors [198486] 1 GLR 122 illustrates the impact of public law provisions on contracts of employment. In this case, because the employees, as public servants, enjoyed constitutional protection from being dismissed “without just cause”, the Court of Appeal held that, where they had been dismissed in breach of the constitutional obligation, the Court would mark its disapproval of the employer's unconstitutional action by ordering it to pay two years' salary to the employees as compensation.
Entitlement to salary until retirement age after wrongful termination
A contract of employment is clearly terminable. Even if it is terminated wrongfully, that does not give the aggrieved party the right to be paid salary till his retirement age. The Supreme Court held in Nartey-Tokoli v Volta Aluminium Company [1987-88] 2 GLR 532 that where an employer terminates an employee's appointment in breach of a contract of employment, the employer is liable to pay damages to the employee and that the damages are not limited to salary in lieu of notice.
Measure of damages for wrongful termination of employment
In principle then, in the absence of any contrary statutory or contractual provision, the measure of damages in general damages for wrongful termination of employment in the common law of Ghana is compensation, based on the employee's current salary and other conditions of service, for a reasonable period within which the aggrieved party is expected to find alternative employment. Put in other words, the measure of damages is the quantum of what the aggrieved party would have earned from his employment during such reasonable period, determined by the court, after which he or she should have found alternative employment. This quantum is, of course, subject to the duty of mitigation of damages.