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Japhet v Vanuatu Internal Air Services Ltd [2000] VUSC 59; Civil Case 016 of 2000 (20 October 2000)

IN THE SUPREME COURT OF

THE REPUBLIC OF VANUATU

(Civil Jurisdiction)

Civil Case No.16 of 2000

BETWEEN:

HAM JAPHET

Plaintiff

p class="MsoNoMsoNormal" align="center" style="text-align: center; margin-top: 1; margin-bottom: 1"> AND:

VANUATU INTERNAL AIR SERVICES LIMITED

Defendant

Coram: Mr Justice Oliver A. Saksak

p class="MsoNormal" style="margin-top: 1; margin-bottom: 1"m: 1"> Ms Cynthia Thomas - Clerk

ass="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> Mr Silas C. Hakwa for the Plaintiff

Mr Jack I. Kilu for the Defendant

JUDGEMENT

Introduction

This judgement provides reasons for the decision of the Court delivorally on Thursday 12tsup>th October, 2000. The decision of the Court was that there be judgement in favour of the Plaintiff. Damages was awarded in favour of the Plaintiff in the sum of VT1,782,900 with interests at the rate of 12% per annum commencing on 17th March, 2000 and continuing until the damages is paid in full. Further, the Plaintiff was awarded his costs to be agreed or taxed.

Nature of Case And Facts

This is an employment case Plaintiff worked for the Defendant beginning on 15th March 1997. On On 20th March, 2000 the Plaintiff received a letter from the Secretary to the Board of Directors of the Defendant Company advising the Plaintiff that his employment was terminated with effect from 17th March, 2000, three days earlier. The reason stated in the letter was that the Plaintiff had breached Clause 8:11 of the Staff Regulations. On the same day the Plaintiff received a cheque from the Defendant Company in the sum of vt337,218 being in respect of:

(a)& 3 months in lieu of cnotice &nbp; ;&nbpp; & =sp;sp; &bsp; &bsp;  p; &nvsp; ,4185,400

>

(b)&nbbsp;& &bsp; nbsp; 3 da 3 days ys s s salary &nnbsp;;&nspp;&nsp; &nsp; &&nbp;; &nnsp;& &nbp; &nbp; &nnbp;& =; &&nbs; &nbs; &nbs; ; vta (pt">(c)&nbc) &nsp; &bsp; nbssp &&nbs;; Annual ual L Leave & &nsp; &nbssp; &nbbsp; &nsp; &nbp; &nbbp;&n p;&nbbsp; &nbp; &nnbsp;1,800n /p>las cormaNormayle="nargit-left: 36.: 36.0pt; 0pt; margimargin-topn-top: 1; : 1; margimargin-botn-bottom: tom: 1"> 1"> (d) &nbssp;&nnbsp;; SeverSecerance payment &nnsp;&&nsp;;&nspp;&nsbsp;;bsp;; = & &nvsp; ,4391/spa

>

p>

-----/span>

>

vt347,459

Less 4% VNPF  p; &nsp; &nbbsp; &nbbsp; &nbp; &nbp; &nb p; &nnnbsp;;&nbssp;bssp;&nnbspnnbsp;sp;&nnbsp; p;&nbbsp;&&nbsp1 vt 10,2410,241

>

--------------

Total & p; &nsp; &nsp; ;&nbpp; &nnsp;&&nsp; &nbp; &nbbp;&nnbp;& &nbbsp; &nsp; &nsp;&nbssp;&nn&sp;;p;&nnbs&nnbsp;p; &nbbsp;&&nsp;;&nsp; &bsp;&bsp; nbsp; nbsn; =&&bsp;&bsp; nbsp;nbsp;  p; &nnbsp;&nsp; vt337,2137,218

========

The Plaintiff held the position of a Shift Supervisor with the Defendant Company at its Airs Airport Terminal in Pekoa, Santo. Whilst carrying out his duties as shift supervisor the Plaintiff also held a position within the Municipal Council of Luganville as an elected member. He was elected as such in December 1999. This was his second term as councillor in the Luganville Municipal Council. His first term started in 1995 and ended in 1998. During this period the Plaintiff was also employed by the Defendant Company.

ass="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> It was for his termination that the Plaintiff issued proceedings on 26th June, 2000 claiming damages for unlawful and unjustified termination, and for costs.

Plaintiff's Evidence

The Plaintiff gave oral idence in support of his case which basically were (a) that the Defendant Company acty acted in breach of the Staff Regulations in terminating his employment and (b) that the Defendant Company in doing so had acted unlawfully and without just cause.

The Plaintiff tendered into evidence the following letters:-

class="MsoNoMsoNormal" style="text-indent: -36.0pt; margin-left: 72.0pt; margin-top: 1; margin-bottom: 1"> (an style="font:7.0pt "Times New Roman""> &nbs; &nbbsp;&&nbp; &nsp; &nbbp;&nnbp;& &nb
Exhibit P.1

&nbs>

Letter referenced NF5/366/03g/WWN-ghd d18th March 1997 1997 to the Plaintiff by Willie Naripo -

"Dear Hapan>

I write to advise that as per Board of Directors Meeting datesup>th March, the Dire Directors took decision to re-employ you and to be a Traffic Staff at Pekoa Airport.

Your re-appointment is considered as a new employee, and is effective 15th March, 1997. Please find attached your Job Description and should you have any queries, please do not hesitate to consult the General Manager. Your salary will be in accordance to traffic salary scale.

As a former employee, I believe you are aware of all company procedures and policies however should you have any doubt pleased consulted the Commercial Manager or the General Manager. I take this opportunity to welcome you and I look forward to a good working relationship in future.

On behalf of the Board and myself."

(b) &nbbsp; Exhibit P.2

Letter dated 26th March 1997 to the Plaintiff by Karl Kalangis.

class="MsoNoMsoNormal" style="margin-left: 72.0pt; margin-top: 1; margin-bottom: 1"> "Ham,

Further to our introduction on your re-instatement by the Board of Directors on the 21st March, 1997 at the Hotel Santo, I hereby confirm on the following matters:-

<

(A) &nnsp;&&nsp;; sp Ypan>Your Annual Salary effective as of 15th March 97 is 600,000vt less 25% on 3 months probation deduction.

(B) ; &nnsp;&&nsp;;&nbp; &nbp; /s Company will providrovide you with uniform in which you are comply to wear in according with the employee uniform procedure and conditions.

(C)  p;&nbbsp;&nsp; &nsp;  p; &n sp; You will will not be allow any company benefits on probation period, discount after 3 months on probation and foc aft montrvicein the co.

Yours faithfully,

(Signed)

Karl Kalangis

Personnel Manager".

(c) Exhi.it P><spp> /p>

Letter dated 2>th March, 1999 by Marokon Alilee to Batick Kark Karl -

"Dear Sipan>

re: Councillor Mr Ham Japhet Attending Council Meetings

Thank you for your letter requesting permission for Mr Ham Japhet a Vanair employee to attend the council meeting. Ham has been elected councillor of the Luganville Municipality and will be attending series of meetings for the Council.

Mr Japhet caend the council meeting at anytime except when he is e is on duty he has to make alternative arrangement with another staff at the airport to cover up for him while he attend the council meeting.

I take this opportunity to congratulate all the councillors attend the coue council meeting.

ass="Mss="MsoNormal" style="margin-left: 72.0pt; margin-top: 1; margin-bottom: 1"> Yours sincerely,”

This letter wased to the Personnel/Admin. Manager, Bruno Juno Jean Batise - Santo Branch Manager, Thompson Peter - Airport Supervisor and Ham Japhet.

(d) &nbssp; &nsp; Exhibit P.4//u><<

Letter da0th March, 2000 to the Plaintiff by Raynolds Boeson, Operations Manager -

"Dear Ham,

I have been instructed by our Cha (Moi Dinh) to advise you oyou of our Staff Regulation. According to our Staff Regulation page 26 clause 8:11 paragraph 2, any staff elected to Parliament, Local or Municipal election must immediately resign from the company. Your employment with the company is therefore questioned on the basis that you have have been elected as a Luganville Councillor. I therefore recommended that you either resign as a Councillor or from the Company within one month from the date of this letter.

Yours faithfully,

(e) ;&nbssp;&nnbsp; bsp; Exhu>Exhibit P.5

>

langGB" style="font-size: 12.0pt">

Letter dated 20th March, 2000 to the Plaintiff by Hannah Liu, Board Secretary -

"Dear Ham,

RE: TERMINATION OF EMPLOYMENT

After being informed of our Staff Regulation as per our staff taff manual on the 10th March, 2000, the Board of Directors at its meeting on the 17th March, 2000 have decided to terminate your employment with Vanair Limited effective as of 17th March, 2000 due to breaching Clause 8.11 of page 26 paragraph 2 of the staff manual.

You are entitled to three months e, severance pay plus annuaannual leave owing as of 17th March, 2000. We would like to tank you for all your contribution and support whilst being with the company for the last three years.

Yours faithfully,"

The Plaintiff gave further evidence showing that he had ved a cheque from the Defendant company for the sum osum of vt337,218 but denied that he did so without accepting or conceding that his termination was lawful or justified. He tendered the Termination Pay Calculation as Exhibit P.6, the cheque as Exhibit P.7 and the Payment Voucher as Exhibit P.8.

The Plaintiff gave further evidence showing that he wcouncillor on the Luganville Municipal Council from 1rom 1995 to 1998. Further that he was re-elected as Councillor in December 1999 for a further term of four years. That since his appointment on 15th March, 1997 he had been attending Council meetings. That on two occasions in 1997 the Plaintiff had arranged with one Thomson Peter, Shift Supervisor to stand in his place while he attended council meetings and that he made similar arrangements in 1998.

<

Regardie Staff Regulations the Plaintiff gave evidence that since he started work with the Dthe Defendant company he had requested a copy of it several times but no copy was ever made available to him. He admitted that he was only sent a copy of the Staff Regulation after he was terminated.

The Plaintiff gave further evidence showing that during the period 20th March, 2000 2000 to the date of hearing of his action, he has been running a small retail business on his premises earning a gross income of vt15,000 to vt20,000 per month. His wife is unemployed and there is no one living with them who is in gainful employment.

lass="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> Defendant's Evidence

Mr Dinh Moi, Chairman of the current Board rectors of the Defendant Company gave evidence on behalf lf of the Defendant. His evidence shows basically that the Board of Directors had met on 17th March, 2000 and resolved to terminate the Plaintiff's employment. At that meeting all 13 members of the Board were present together with the General Manager and the Board Secretary.

p class="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> Mr Moi's evi show the following decision -

"(f) &nThe Chairman made a p proposal for the termination of Pekoa Staff Ham Japheth since he was a member of the Municipal Cl of villein acnce whe Staff Regulation. Seconded by member DonalDonald Resd Restuetutuetune. Ine. It wast was resolved that Ham Japheth be terminated effective 17/3/2000."

This decision is annexed and marked "c" to the affidavit evidence ofoi.

Mr Moi's further evidence shows that he became aware of the Plaintiff's position as Councillor on the Luganville Municipal Council whilst at the same time occupying the position of Shift Supervisor with the Defendant Company. He told the Court that he had on numerous occasions advised the Plaintiff verbally that he was being employed contrary to company policy and that he was given the choice of either resigning his seat as a Councillor or resigning from his post with the Defendant Company. Mr Moi told the Court that only when the Plaintiff did not respond to those advices that he instructed the Operations Manager to write the letter of 10th March, 2000 (Exhibit P.4) and placed the matter before the Board of Directors for decision. He confirmed that the Board took the decision to terminate the Plaintiff and that such termination was not due to misconduct, but that it was done in accordance with the requirements of the Staff Regulation and Company Policies. He confirmed that the Defendant Company had paid off all outstanding entitlements of the Plaintiff which amounted to VT337,218 and that the Plaintiff and no further claim against the Defendant. The relevant clause relied upon by the Defendant was Clause 8.11 “Candidacy to Parliament and Local Government Council.

ass="MsoNoMsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> Any Staff whom intends to contest a parliamentary or local government council election should lodge the interest with department head at least one month before the closing date of nomination of candidates. Staff concern will be one unpaid leave until the election is held. If elected the staff concern must immediately resign from the Company, any outstanding remuneration will be paid less any deduction owing to the Company."

Issues

I was told by Mr Hakwa that with the disclosure of the Staff Regulation by the Defendant Company most facts have been agreed. The only issues that I had to consider and decide upon are:-

(a) &nsp; &&nbp;;&nbpp; &nnsp; &nbp; &nb p; /s Whether or noor not there was a contract of employment between the Plaintiff and efend/span lass=ormalle="margin-left: 36.0pt; marg margin-top: 1; margin-bottom: 1"> <

(b)&nbs> &nbbsp; &nsp; &nbbp;&nnbp;& &nb Whan>Whether ther or not the Defendant had breached such contract by terminathe Piff?

">

(c) &nnbsp; &nnbsp; &nbp; &nbp; er or not the the Defendant had breached Staff Regon by tering taintispan> ass="MsoNormal" style="margin-lgin-left: eft: 36.0p36.0pt; mat; margin-rgin-top: top: 1; ma1; margin-bottom: 1">

lass="MsoNoMsoNormal" style="text-indent: -36.0pt; margin-left: 72.0pt; margin-top: 1; margin-bottom: 1"> (d)  p;&nbbsp;&nsp; &nsp;  p; &nnsp;& sp; Whan>Whether or not the Defendant had acted lawfully rminathe Plaintiff?

Plaintiff's Arguments and Submissions

In a nutshell it was argued on behalf of the Plaintiff there was a valid contract between the Plaintiff and Dand Defendant. It was submitted that the letters tendered into evidence as Exhibit P.1, Exhibit .2, Exhibit 3, Exhibit 4 and the Staff Regulations - Exhibit 9 set out the minimum terms and conditions of the Plaintiff generally. On that basis therefore it was submitted that the contract was partly a written contract and that section 9 of the Employment Act [CAP.160] (the Act) had been complied with. It was further submitted that in the absence of the contract specifying the term of the Plaintiff's employment the term should be implied to be for three years under the provision of section 15 of the Act. In relation to the second and third issues which are closely related, it was argued and submitted that the Defendant had breached their contract with the Plaintiff and further that such termination was not made in accordance with the Staff Regulation of the Defendant Company. It was argued and submitted that Clause 8.11 of the Staff Regulation did not and does not give any power to the Defendant Company's Board of Directors to terminate any staff who is a member or a councillor to a Municipal Council. It was argued that the power in Clause 8.11 is restricted to a staff who stands for election and is elected as a Member of Parliament and as a councillor to a local government council.

In relation to the fourth issue it was argued and submitted that inabsence of specific power ower of the Board of Directors to terminate the Plaintiff for being a councillor to a municipal council, that there was no other good and just reason why the Plaintiff should be terminated. It was submitted by Mr Hakwa that the termination of the Plaintiff was therefore unlawful and that he was entitled to be paid damages. And he further submitted that the breach committed by the Defendant was a serious breach entitling the plaintiff to his full remunerations and damages under the provisions of section 53(1) of the Act. Mr Hakwa also argued and submitted that the plaintiff had not waived his right to his entitlements and damages as he had lodged his case within a reasonable time in accordance with section 53 (2) of the Act.

Mr Hakwa further submitted that the amount of damages should be calcd in accordance with sectioection 56 (4), (5), (6) and (7) of the Act. He referred the Court to the case of Marie Noelle Ferrieux -v- Banque Indosuez Vanuatu Limited 2 VLR, 462 in which the Supreme Court was urged to consider awarding damages up to 6 times the amount of severance allowance which an employee is entitled to. However, Mr Hakwa also drew the attention of the Court to the case on appeal Banque Indosuez Vanuatu Ltd -v- Marie-Noelle Ferrieux 2 VLR 490. There the Court of Appeal had difficulty with applying section 56(4) of the Act and chose therefore to adopt the common law principle to award damages as compensatory and not as punitive or exemplary.

Defendant's Arguments and Submissions

Basically the Defendant argues that termination of the Plaintiff was made in compliance with Clause 8.11 of the Staff Regulations. It was submitted by Mr Kilu that the Board of Directors was under a public duty to act as they did in the best interest of the public beneficiaries. He argued that the Staff Regulations were in place to ensure the better running and management of the company. He submitted that Clause 8.11 should be given its fair and liberal meaning pursuant to section 8 of the Interpretation Act [CAP.132] to ensure the attainment of the object of the Regulations according to its true intent, meaning and spirit. He argued that Clause 8.12 of the Staff Regulations expresses a clear intent and spirit of the Company not to allow political elements in the administration of the public company. He argued that Clauses 8.11 and 8.12 when read together have the intent, meaning and spirit of excluding local government councils and Municipal Councils and a Member of Parliament. He referred the Court to Hawke -v- Dunn [1897] UKLawRpKQB 42; (1897) 1 QB 579 outlining the general principles of construction of statutes. Mr Kilu further argued and submitted that as the Plaintiff's case was not a case of misconduct, there was no need to give him the opportunity of being heard. He argued that even if the Plaintiff had been given an opportunity to be heard, it would not have made any difference. He submitted that the Plaintiff's case fell within the exceptions to the rule of fair hearing in White -v- Redfern (1879) 5 QB 15; Schmidt -v- Home Secretary [1969] 2 Ch.149; Malloch -v- Aberdeen Cpn [1971] 1 WLR 1575 and Cinnamond -v- Airports Authority [1980] 1 WLR 582.

Finally it was argued that as the Plaintiff had been pis outstanding entitlements in accordance with sectioections 49(3) and (4) of the Employment Act, that the Plaintiff was not entitled to anything else.

The Law

The relevant law to apply in this case are the provisions of the Ement Act [CAP.160]. In its its Introduction the Staff Regulations page 1 paragraph 2 it is stated-

(a) &nnsp;&&nsp;;&nspp;&nssp;&nsp;

pan lEN-GB" style="font-size: 12.0pt">

"A contract of employment may be made in any fany form, whether written or oral:

Provided that a contract of employment for a fixed term exceeding 6 months or making it necessary for the employee to reside away from his ordinary place of residence shall be in writing and shall state the names of the parties, the nature of employment, the amount and made of payment of remuneration, and, where appropriate, any other terms and conditions of employment including housing, rations, transport and repatriation."

Rulinto the First Issue

Applying this provision to the facts of the case as supported by oral and documentary evidence, it is clear to me that the letters exhibited as Exhibits P.1, P.2, P.3 and the Staff Regulations itself (P.9) contain the minimum terms and conditions application to the Plaintiff. In my judgement, these amount to a written contract existing between the Plaintiff and the Defendant Company and I so rule. The duration of the contract was not stipulated and therefore for the purposes of assessing damages it has to be implied by virtue of section 15 of the Act to be 3 years, renewable unless earlier repudiated or terminated by either party in accordance with law. Section 15 of the Act reads -

"The maximum duration of employment that may be stipulated or implied in any

contract shall is no case exceed 3 years":

class="MsoNoMsoNormal" style="text-indent: -36.0pt; margin-left: 72.0pt; margin-top: 1; margin-bottom: 1"> (b) style="font:7.0pt "Times New Roman""> &nbsp &nbssp;&nnbp; &nsp; &nbbp;&nnbsp; Section 48 pro8 provides for termination of contract -

>

"Subject to the provisions of this Part a contract of employment shall terminate on the last day of the period agreed in the contract or on the completion of the piece of work specified therein".

/p>

Ruling As To The Second Issue

From the evidence the Plain was employed as a Traffic Staff at Pekoa Airport. His appointment was a re-appo-appointment as a new employee and was effective from 15th March, 1997. This is clear from Exhibit P.1. There was no agreement as to the period when the contract could and would terminate. Indeed it seems from the evidence of Mr Moi that the Plaintiff was previously employed by the Defendant. Paragraph 2 of Exhibit P.1 also suggests that this is so. Paragraph 1 of Exhibit P.2 suggests that the appointment was a re-instatement. Indeed in his evidence Mr Moi told the Court that he regretted taking the decision to terminate the Plaintiff because the Plaintiff was such a good employee that had he resigned as a Councillor he would have continued to be employed. There was no evidence to suggest that the Plaintiff was employed specifically to perform a piece of work. The position he occupied was a fixed or permanent position having been confirmed as such after going through a 3 months probation period. In my judgment the contract of employment was for an indefinite period and for the Defendant to have to terminate Plaintiff earlier as they did was a breach of contract entitling the Plaintiff to damages. And I accordingly rule.

p class="MsoNoMsoNormal" style="text-indent: -36.0pt; margin-left: 72.0pt; margin-top: 1; margin-bottom: 1"> (c) &nbp; &nnbsp;;&nbp; &nsp; &nnbp;&&nbp;; &n Clan>Clause 8use 8.11 of the Staff Regulation states-

“Any staff whom intends to contest a parliamentary or local goal government council election should lodge the interest with department head at least one month before the closing date of nomination of candidates. Staff concern will be on unpaid leave until the election is held. If elected the staff concern must immediately resign from the Company, any outstanding remuneration will be paid less any deduction owing to the Company".

/p>

This provision is very clear. It concerns only a staff who contests for and is electedarliament or a Local ocal Government Council. If it was intended that a councillor to a municipal should be included, the Regulation would have said so specifically. And the appropriate term to use would have been either "Municipality" or "Municipal Council". "Municipality" is defined in the Interpretation Act [CAP.132] to mean "a municipality in Vanuatu established by law." It is distinct from a local government council. Section 2 of the Local Government Regions (consolidation) Order No.1 of 1996 establishes 6 Local Government Councils. They do not include the 2 municipal Councils of the two Municipalities. Municipal Councils are regulated under the Municipalities [Act CAP.126]. Local Governments are regulated under the Decentralisation and Local Government Regions Act [CAP.127].

Section 8 of the Interpretation Act therefore does not have to be resorted to here. And the principles of construction outlined in Hawke -v- Dunn are principles of construction of statutes. These Staff Regulations are not statutes. In Vanuatu, due to the special local circumstances existing here it is my considered opinion that the ruling in Hawke's case be not upheld as it would cause very disastrous effects as this case itself shows. And I so rule.

It was submitted on behalf of the Defendant that Clauses 8.11 and 8.12 read together had the intent, meaning or spirit of preventing political elements in the administration of the company. If that was so then in my judgement those clauses are unconstitutional. Clause 8.12 regulates politic and religion as follows:-

"No po or religion activities are to be allow in the companompany premises by any staff, staff practising such activities in the company premises will be discipline according".

This clause does not prohibit employment of politilements. It prohibits their activities on company pre premises. Read together with Clause 8.11, these two clauses are in conflict with each other. Whereas Clause 8.11 purports to prohibit the employment or political elements, Clause 8.12 allows it but makes them subject to discipline.

<

It is clear that the Board of Directors of the Defendant did not the power to terminate the the Plaintiff. Mr Moi gave evidence that there were some complaints about some activities of the Plaintiff which called for institution of disciplinary action. But that is not the course of action taken by the Board of Directors. Had the Defendant chosen to take that course then it follows that they should have given him a right to be heard. But the Defendant admitted and it is not in issue that this is not a case of misconduct against the Plaintiff. Having said all that, it is therefore clear to me that the Defendant did not comply with the provisions of its Staff Regulations when it terminated the Plaintiff, and I so rule.

Ruling As To The Fourth Issue

class="MsoNormal" style="margin-top: 1; margin-bottom: 1"> 1">

p class="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> Having ruled Clause 8.11 did not give powers to the Defendant's Board of Directors to terminate tate the Plaintiff, and the Defendant not having proceeded against the Plaintiff under Clause 8.12, it is my judgment that the termination of the Plaintiff was unjustified and unlawful, and I so rule.

Damages

The Plaintiff is therefore entitled to be paid damapart from his full remuneration for the appropriate iate period of notice under section 49 which the Plaintiff has acknowledged receipt of. But the receipt of such payment does not prejudice his claim to damages for breach of contract which the Plaintiff has sued for and has been adjudged to be successful in his action. The relevant provision is section 53 of the Act which states -

"(1) &nbbsp;& If any any empl mpl ill-treats an employeployee or commits some other serious breach of the terms and conditions of the contract of employmene emp may terminate the contract forthwith and sand shall hall be entitled to his full remuneration for the appropriate period of notice in accordance with section 49 without prejudice to any claim he may have for damages for breach of contract.

(2)  p;&nssp;  p; &nbp; &nbp;

I accept Mr Hakwa's submissi that the Defendant's actions amounted to a serious breach in that the Plaintiff tiff was terminated three days earlier than he was so advised. Furthermore the Plaintiff was granted one month in which to decide to resign on 10th March, 2000. (Exhibit P.4) Before the Plaintiff had the opportunity to decide within that period, he was terminated seven days after on 17th March without him knowing it until three days later on 20th March, 2000. That in my judgement is what makes this breach a serious breach. It was not contended that the Plaintiff had waived his right to claim for damages. He filed his action on 26th June, 2000. That is within a reasonable time.

Quantum

class="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> Counsel for the Defendant was not prepared to address the Court on the issue of damages. That being the case I accept the submissions of Mr Hakwa in relation to damages and its quantum in their entirety.

class="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> The amount of es is therefore calculated as follows:-

(a) ; Mynthlla Sanbsp &nbsp &nsp; &nbssp; ;&nspp; &nbp; &nbp; ;&nbpp; &nnsp;&&&sp;& p;&nbbsp;bbsp;& p;&nbbsp;  p;&nssp;  p;&bsp;&nbs; nbsp;nbsp; &nbss; nbsp;&nbp; &nsp; & - &nnbsp; nbsp; &nbp; &&,8sp1>

 p;&nssp;  p; &nbp; &nbp;

for a further 3 year years bass based oned on section 15 of the Act &nbbsp; -sp; - &&bsp;;&bspp; &nnsp; 36p; 36 months>

0pt">(c)  p; &nsp; &nbbsp; span>Entitlemitlement tont to 3 months notice underion 49

of the Act. &nnsp;&&nsp;;&nspp;&nssp;&nsp;  p;&nssp;  p; &nbp; &nbp; ;&nbpp; &nnsp;&&nsp; &nbp; &nbbp;&nnbp;& &nbbsp; &nbp; &nbp; &nbsbbsp;&&nbssp &nbsp  p;&nbbnbsp& - &bsp; &nbbp;&nnbp;&&nbp; &nsp;&nsp; bsp; 3 mon3 monthsspan>span>

(d)&nbsp &nbs; &nbp; &nbss;&nbbsp; Enp; Entitlemitlement tont to 1 1 month annual leave &nnsp;&&nsp;;&nspp;&nssp;&nsp;  p;&nssp;  p; &nbp; &nbp; & p; -&&;&nbpsp;& pnbspp;&nbbsp; 1 month

p>

(e)">(e) Entitlement to 15 d leys leave for 1 year of service -;nbspp;nbssp;nbbsp;nnbsp;nbsp; &nbT30,90an>0pt">&nbsp

p>

Therefore, Monthly Salary  p;&nbbsp; &bspp; &nbs; &nbs; ;&nbpp; &n-sp; p;nbsp; &bsp; &&nbp;p;&nsbsp;,800 an> Toumber s &nbsp &nbsp &nbsp &nbssp; &&nsp;;&nsp; &nbp; &nnbp;&&nbp;; &nnbsp;; -&nnbsp; &nbs; ; &nbbsp; 4sp; 40

>

---------

>

VT2,472,000

Entitlement to 1s Leave + 30,spa >

VT2,502,900

<

Less the Plaintiffsses in 36 Months

at VT20,000 p month&nbsp  p; &nnsp;&&nsp; &np; &nnsp;&&nsp;; &nnbsp; &nbp; &nbp; &nbss;&nbbsp; &nsp; &nbbsp;& p;&nbsbs&nn&nb;;&nbssp; & &nnsp;&nbs;&&nbp;&nbp;&nbsp &nsp; &bsp;;nbspp&nbsp &nbsp -;&bspp; pp;&nbbsp; 720,0720,000 ass="rmal" style="text-indentndent: 36.: 36.0pt; 0pt; margimargin-left: 324.0pt; margin-top: 1; margimargin-botn-bottom: 1"> ---------------

Total amount of damages &&nbsp &bsp; &bsp;  p; &nnsp;&&nsp; - p; - ;nbspp;nbssp;&nnsp; &nsp; &nbbsp; &nbbbsp;& p;bspp; nbsp; & psp; &&nbsp &nsp; &bsp;&bsp; p&nbssp;&nbs; &nsp; &nbs;;nbsp;&nbsp &nbsp VT1,782,900n>: 1"> =pt">===============

class="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> Interests

The Plaintiff claims inter at the rate of 12% on the amount of damages awarded. In my judgement this claimclaim is justified in view of the seriousness of the breach. The rate of interest claimable on the sum of VT1,782,000 of 12% per annum is allowed. This will commence from 17th March, 2000 until the whole sum of VT1,782,000 is paid.

Costs

lass="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> The Plaintiff c also for costs. In my judgment he is entitled to costs to be agreed or taxed.span>

The Defendant is HEREBY ORDERED to pay the Plaintiff as follows:-

(1) &nbs; &nbbp;&nnbp;&&nbp;; &nsp; Dpmages in the sum sum of VT1,782,000.

(2) &nnsp;&&nsp;;&nspp;&nssp; sp; Interests on VT1,782,000 at the rate of 12% per annum from 17th March, 2000 until the whole judgment sum is paid.

(3)&nb"> &nnbsp; &nsp; &nbbp;&nnbp;&&nbp;; &nsp; Costse a beed reed or taxed.

&nbspan>

DATED at Luganville, this 20th day of October, 2000.

BY THE COURT

OLIVER A. SAKSAK

Judge


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