The employer may be required to reorganize his business as a result of fluctuations in economic activity and technical infrastructure in Cameroon. This reorganization may lead to the reduction in the size of the labour force of the establishment. In some cases, the establishment my simply be closed down in the face of financial crisis.

  • Redundancy: This is the dismissal of a worker or workers motivated by common considerations of a collective and economic nature not dependent on the personality of the individual worker affected. Redundancy may result from the closure of the establishment as was illustrated in the case of Sutton v Reulon Overseas Corporation 1973, IRLR 173.

The labour code of Cameroon provides that on the ground of curtailment of activity in the establishment or by internal reorganization contemplated by the employer, the later may proceed to dismiss workers either individually or severally. But the repercussions of such provisions could be so devastating that the code further proceeds to lay down a special procedure to follow for dismissal to be lawful in such circumstances. They are as follows;

. The employer must determine an order of dismissal by taking into account each worker’s length of service within the establishment, his professional proficiency and family responsibility.

. The employer must notify the list of workers he proposes to sack in writing to the staff representative with a view to obtaining his suggestion on the matter.

. The suggestion of the staff representative must be communicated to the employer within 15 days.

The above procedure once adhered to renders the dismissal lawful especially in cases where the establishment has many workers of different professional categories.

  • Bankruptcy and Liquidation: In such a situation the employer’s economic or financial problems are such that he cannot continue with the exploitation of his business and therefore can’t keep the worker.  But because this is based on the fault of the employer and can’t be considered like a case of force majeure, the law subjects the employer to the requirements of notice. In the case of Fowler v Commercial Timber Co. Ltd, 1930, 2KBI it was held by the court in England that the appointment of a liquidator operates to terminate all existing contracts of employment.
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