Chandradev Appadoo (Respondent) v SBM Bank (Mauritius) Ltd (Appellant) No 2 (Mauritius)

Case summary

Case ID

JCPC/2025/0019

Jurisdiction

Mauritius

Parties

Appellant(s)

SBM Bank (Mauritius) Limited

Respondent(s)

Chandradev Appadoo

Issue

(1) For the purpose of calculating the severance allowance, did the Court of Appeal err in overturning the first instance finding of fact that there had been a break in Mr Appadoo’s employment between 24 November 2012 and 24 December 2012? (2) What rate of interest, if any, should be awarded on Mr Appadoo’s severance allowance?

Facts

Mr Appadoo joined SBM Bank (Mauritius) Ltd (“SBM”) on 10 June 1980. He was moved onto a fixed term contract which was extended to August 2012. On 10 October 2012 his employment was extended on same terms and conditions up to 30 November 2012. SMB’s case is that Mr Appadoo’s contract of employment was terminated with his agreement on 24 November 2012 and was re-employed from 24 December 2012. SBM says it was general practice to have a 28-day break in the employment of employees such as Mr Appadoo. Mr Appadoo accepts that on 12 December 2012 he signed a further 5-year fixed term contract to start from 24 December 2012. However, his case is that there was no termination on 24 November 2012 and that he worked throughout that period so that his employment was continuous. Mr Appadoo’s contract was terminated on 4 December 2017 for gross misconduct for failing to disclose a valuation report to the SBM board. Although the Industrial Court held that SBM was justified in dismissing him for gross misconduct, it found that there were procedural defects with the investigation and dismissal letter. This rendered the dismissal unlawful under the Employment Rights Act 2008 and made SBM liable to pay a severance allowance to Mr Appadoo. The amount of the severance allowance depends on whether Mr Appadoo had continuous employment since 1980 or had a break in his employment in 2012. The Industrial Court held that there had been a break in the continuous employment of Mr Appadoo. Mr Appadoo appealed that finding to the Supreme Court, as well as challenging the calculation of severance and the rate of interest awarded. The Supreme Court found in favour of Mr Appadoo on the “break in employment” issue and on the calculation of severance, but did not award any interest on the severance allowance. Mr Appadoo now appeals to the Board in relation to the interest issue, and SBM appeals to the Board in relation to the “break in employment” issue.

Date of issue

21 March 2025

Case origin

Appeal As of Right

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