Former CEO of CH&PA, Lelon Saul Wrongfully Terminated

 

Lelon Saul’s tenure as Chief Executive Officer (CEO) of the Central Housing and Planning Authority (CH&PA) became one of the most debated employment cases in Guyana's recent history. Saul, who was appointed in June 2017 on a three-year contract, found his professional journey abruptly derailed in 2020, sparking a legal battle that highlighted the importance of respecting contractual terms and due process in the workplace.

What Constitutes Wrongful Termination in Guyana?

Wrongful termination, also known as wrongful dismissal, occurs when an employee is dismissed in violation of their employment contract or in breach of established labour laws. In Guyana, wrongful termination is determined based on the following key principles:

1. Breach of Contract: If an employee is terminated before the agreed contract period without valid legal justification, it is considered wrongful termination.

2. Lack of Due Process: Employers must follow established procedures for dismissals, including providing adequate notice, conducting investigations, and giving the employee an opportunity to respond to allegations.

3. Lack of Just Cause: Employees cannot be dismissed arbitrarily. There must be legitimate grounds for termination, such as misconduct, poor performance, or redundancy.

4. Failure to Follow Legal Obligations: Employers must comply with labour laws, including payment of severance and honoring contractual agreements.

The Appointment and Early Years

As CEO of CH&PA, Saul played a pivotal role in overseeing housing and development projects aimed at improving living conditions for Guyanese citizens. His contract guaranteed a tenure of three years, beginning in June 2017, with the possibility of renewal based on performance and organizational needs.

The Controversy Leading to Dismissal

In August 2020, following a change in government, Saul was informed of the decision to terminate his contract. This action raised concerns and was widely interpreted as politically motivated due to its timing and lack of clear justification. Saul argued that his termination was not only unfair but also violated the terms of his contract, as he still had 29 months remaining on his agreed tenure. Furthermore, he contended that the dismissal lacked transparency and breached procedural fairness.

Why Was It Determined to Be Wrongful Termination?

The legal battle escalated to the High Court of Guyana, where Saul challenged the legality of his dismissal. The court ruled in his favor, determining that the termination was unlawful for the following reasons:

1. Breach of Contract: The CH&PA failed to honor Saul’s three-year contractual agreement. Since his dismissal occurred with 29 months remaining and there was no valid contractual basis for early termination, this constituted a clear breach.

2. Lack of Just Cause: No evidence was presented to justify Saul’s dismissal based on misconduct, performance issues, or redundancy. The absence of legitimate reasons made the termination unlawful.

3. Failure to Follow Due Process: The CH&PA did not provide Saul with prior notice, an opportunity to respond, or any procedural fairness in the decision-making process. These failures further invalidated the dismissal.

4. Judicial Oversight: The court emphasized that employers must adhere to the principles of fairness and legality when terminating employees. Since CH&PA disregarded these principles, the court ordered that Saul be compensated for the remaining 29 months of his contract.

Similar Cases in Guyana

Saul’s case is not the first instance of wrongful termination in Guyana. Several other notable cases highlight the importance of contractual obligations and due process:

• Maurice Arjoon vs. New Building Society (NBS): Arjoon, the former CEO of NBS, was dismissed in 2007 on allegations of misconduct. After a prolonged legal battle, the court ruled in his favor, ordering NBS to compensate him for wrongful dismissal.

• Harry Narine Nawbatt vs. Government of Guyana: Nawbatt, a former High Commissioner to Canada, was dismissed in 2015 following a change in government. The court found that his termination violated his contract and awarded him over $24 million in compensation.

• Leslie Cadogan vs. Ministry of Public Health: Cadogan, a former Permanent Secretary, sued for wrongful dismissal after being terminated in 2015. He argued that due process was not followed, and the case brought attention to the importance of procedural fairness in public sector employment.

Lessons from the Saul Case

The dismissal of Lelon Saul serves as a pivotal case study on wrongful termination in Guyana. It highlights several key lessons:

• Contractual Obligations Must Be Respected: Employers must honor employment contracts unless there is justifiable cause for termination.

• Due Process Is Essential: Transparency, fairness, and adherence to legal procedures are fundamental when making termination decisions.

• Judicial Oversight Ensures Accountability: The court’s intervention demonstrates the critical role of the judiciary in protecting employees' rights and holding employers accountable.

Conclusion

Lelon Saul’s case reinforced the importance of fair labour practices in Guyana. His successful legal challenge not only secured his rights but also set a precedent for upholding employment contracts and ensuring procedural fairness. Employers, whether in the public or private sector, must recognize that failure to comply with contractual and legal obligations can result in serious legal consequences. This case remains a landmark example of how wrongful termination can be challenged and rectified within the legal framework of Guyana.