The recent ruling by the Eastern Caribbean Court of Appeal (ECCA) has shed some light on the complexities of workplace redundancies, particularly in the context of long-serving employees.

The case involved the West Indies Oil Company Limited (WIOC), which faced scrutiny for its handling of redundancies stemming from a company restructuring initiative after the government took a controlling interest.

The ECCA’s decision partially upheld an appeal regarding compensation awarded to Janis James and Bernadine Henry-Hughes, two employees with extensive tenure—27 and 41 years, respectively—whose positions were affected by the layoffs.

While the court recognized that the dismissals were unreasonable, it also criticized the original compensation amounts, deeming them excessive due to a lack of evidence indicating that the employees had actively sought new job opportunities.

Justice Trevor Ward, in delivering the judgement, underscored significant flaws in WIOC’s redundancy approach.

He pointed out the company’s insufficient consultation with the Antigua and Barbuda Trades and Labour Union and highlighted the failure to explore alternative employment within the organization for the affected employees.

His remarks emphasized the importance of adhering to sound industrial relations practices during such transitions.

As a result of the appeal, the court modified the compensation structures, reducing immediate lost compensation to six months’ salary for each employee.

Meanwhile, other entitlements such as notice pay and fringe benefits—namely health insurance and gas concessions—remained intact, reflecting a commitment to honoring the employees’ original benefits package.