In the Mist of COVID 19 and the Labour Law Act 651 and Remuneration Quandary. Are your Employers Doing it Right?

Introduction

The corona virus also known as COVID-19, is here with us and apart from some reported tiger allegedly getting it in the zoo at Bronx, New York, it is causing the death of so many human beings all over the world. If you will recall, human beings are described as the ‘most valuable assets of every organisation’.

Indeed, in our own Constitution of the Republic of Ghana, 1992 the sovereignty of the country lies in its people and for whom power must be exercised. It is these sovereign people who the President in trying to protect, is passing various laws and signing Instruments. It is also in pursuance of protecting and ensuring the welfare of the sovereign people of Ghana that laws and various directives have been passed and are being applied by our Human Resource Managers (HRM) in their line of duty to try to stem the spread of the virus.

The Presidential Directives On 21st March, 2020 the President gave his assent to the Imposition of Restrictions Act, 2020 (Act 1012) (hereinafter referred to as ‘Act 1012). His Excellency over the days, as he usually puts it has ‘come into our homes’ and continues to provide the nation with updates dubbed ‘Address to the Nation’. During each visit, he spoke about measures taken against the spread of coronavirus and steps to protect the human resource of this country, the very people that the human resource practitioners also deal with in their organisations.

Organisations in compliance with the Presidential directives have taken various decisions. Some have asked their employees with leave outstanding to take it, others have simply asked their employees to stay at home, some workers have been described either as critical or essential and therefore asked to work. The question then is: Were the decisions taken by the various HR Managers and Management taken in compliance with Act 1012, because they also saw COVID-19 operating in the Labour Act, 2003 ( Act 651)? What do the directives say on COVID-19 and our human resource? In an attempt to answer this question, let’s travel the road that has brought us this far. First, the Imposition of Restrictions Act, 2020 (Act 1012) which was passed to impose restrictions in accordance with the Constitution. But we can deduce that the main focus was to deal with the Corona Virus or COVID-19 which had come to Ghana and had started to spread in the country.

Remuneration Under The COVID 19 in The Labour LAW Act 651

Let’s consider the issue of remuneration during the COVID-19 pandemic and the various working arrangements put in place by the employer.

Can the worker’s remuneration be reduced for his inability to report to work as a result of the lockdown or such other reason?

My answer lies in Act 651 section 9(b) of the Labour Act which provides that the duty of the employer is to ‘pay the agreed remuneration at the time and place agreed on in the contract of employment or collective agreement or by custom without any deduction except deduction permitted by law or agreed between the employer and the worker.’ Section 67 of the Labour Act provides that

‘every contract of employment shall stipulate that the whole of the salary, wages and allowances of the worker shall be made payable in legal tender in addition to any non-cash remuneration...’.

Remuneration in the Labour Act ‘includes the basic or minimum wage or salary and additional emoluments payable directly or indirectly by the employer to the worker on account of the worker’s employment’.

Also I think many so-called Supervisors and managers have resorted to punitive actions by deducting from employees salaries. Late deductions and other types of deductions used as punitive actions are not permitted in the labour law.

The labour Law Act 651 Section 69 provides

Prohibited deductions 69.

(1) An employer shall not make any deduction by way of discount, interest or any similar charge on account of an advance of remuneration made to a worker in anticipation of the regular period of payment of remuneration.

(2) An employer shall not (a) impose a pecuniary penalty upon a worker for any cause whatsoever; or (b) deduct from remuneration due to a worker, any amount whatsoever, unless the deduction is permitted by section 70 or by any other law or is by way of repayment of an advance of remuneration lawfully made by the employer to the worker.

Permitted deductions Act 651 Section 70.

(1) An employer may, with the consent of the worker, make any of the following deductions from the remuneration of the worker:

(a) any amount due from the worker in respect of contributions to any provident, pension, or other fund or scheme agreed to by the worker;

(b) any financial facility advanced by the employer to be worker at the written request of the worker or any facility guaranteed by the employer to the worker;

(c) any amount paid to the worker in error, as remuneration, in excess of what the worker is legitimately entitled to, from the employer;

(d) on the written authority of the worker, any amount due from the worker as membership fee or contribution to an organization of which the worker is a member;

(e) for meeting any loss suffered by the employer as a result of the loss of, or damage to, any property or thing used in connection with, or produced by, the employer’s business and which is under the control of the worker;

(f) any deduction in compliance with an order made by the Commission.

(2) No deduction shall be made under subsection (1)(f) unless the employer is satisfied, (a) that the loss or damage has been caused by the worker and the worker is

clearly shown to be responsible; (b) that the amount to be deducted is fair and does not exceed the actual value of the loss or damage suffered by the employer or that the amount represents a fair estimate of the loss or

damage suffered; (c) that the worker has been given reasonable opportunity to show cause why the deductions should not be made; and (d) that the rate of the deductions is such as to avoid hardship to the worker and his or her dependants.

(3) Where a worker, who is aggrieved by any deduction made by his or her employer under subsection (1), is unable to resolve the matter with the employer, the worker may present a complaint in writing to the Commission.

(4) The Commission shall investigate the complaint and its decision on the matter shall subject to any other law be final.

What can the HRM do in Management exercising its right under section 8 of Act 651, especially the right to ‘(b) formulate policies, execute plans and programmes to set targets’.

Any such implementation by the employer as a result of COVID-19 and Act 1012, can affect the working relations of the employer and the worker in their contract of employment.

Such measures could be the mitigation of losses as a result of staff not being able to come to work, even though not on official leave. Probably where staff are entitled to lunch and fuel allowances, the employer may have to formulate policies to deal with that situation.

Conclusion COVID-19 is here with us in our beloved country and it’s impact on the employment relationship under the contract of employment must be dealt with by the HRM, under the Labour Act, 2003.

The Labour Act, generally is sufficient to accommodate the consequences of any lockdown and other restrictions as a result of the measures taken against the spread of the corona virus and specific issues to do with leave entitlements, remuneration and policies formulation must be handled as such. In applying the Labour Act, 2003, read with other laws and enactments, the HRM must be guided in the best interest of the human resource in their organisations, their most valuable asset.

Published By Emmanuel AGYAPONG,

Lead Consultant, Talents Human Capital An HR Outsourcing Company.

[email protected]

References

**ALEXANDER WILLIAMS, FIHRMP(Hon), FCIB(Hon)* Covid 19 in the Labour Act,2003

Labour Act 2003,Act 651