Question

Yaw Mathew, Kofi John and eighteen (18) others are employees of SameXYZ Limited, a giant coffee production company located in the Industrial Area of Ghana. They work in the coffee factory of the company. In December 2017, a trade union representing the employees in the coffee factory made certain demands on the company, including demand for pay rise. There were negotiation proceedings following which a settlement was reached between the company and the trade union. Under the settlement, the monthly salary of each coffee factory employee is to be increased from the current amount of GH₵1,500.00 to GH₵ 2,250.00, an increase of 50% over and above the previous salary. It was agreed that the increment was to take effect from January 2018. In January 2018, the employees were put on the new salaries but it was observed that the company was making certain unexplained deductions of GH₵100.00 from the monthly salary of each employee, apart from the lawful deductions. When the employees complained to the company regarding the deductions, they were told that the said amount was a pecuniary penalty imposed on them by the company and that the company owed them no explanation whatsoever. They were further told that any employee who was not ready to suffer the deductions was free to resign. The employees are of the view that such deductions are not permitted under the Labour Act but do not know what to do to halt the deductions and recover the deductions made so far. They have come to you for your legal opinion on such deductions and the steps they can take to halt future deductions and also recover previous deductions as prescribed by law

Answer 1

This assessment will tell about legal opinion regarding the unexplained deductions, and the steps employees can take to hold future deductions and recover the previous ones prescribed by the law:

According to the BCEA (Basic Conditions of Employment Act), an employer cannot deduct money from the pay of employees unless taking his consent in writing, and if the deduction is as per the terms of collective agreement or law, court order, Or arbitration award.

Employers must have to give employees the information in writing regarding the deductions.

steps employees can take to halt the future reductions and to recover the previous deductions:

the employees can form a labor union and negotiate with the company regarding repayment of such deductions.

If it does not work as expected, employees can use lawful methods to get justice.

Employees can file a complaint in the Department of Labor (DOL).

Labor inspectors from Department of Labor will file their complaints, investigate it, and decide on the logical solution.

After such investigation, if they found out that the company was money to the employees, they will issue the company with an instruction to pay by a specific date.