International Journal of Law and Public Policy

This article is based on Aksum City Court’s decision in Merhawi Gezahegn v Crafts Construction PLC (File No. 13529, 26/01/2012 E.C.) Merhawi Gezahegn claimed that Crafts Construction PLC illegally terminated his employment contract after he served two years and a month and, claimed, enter alia, payment of his one month’s salary for unutilized annual leave and pension contribution the defendant had been deducting from his salary. Based on the defendant’s default, the Court decided for the defendant to pay the plaintiff one month’s salary payment for unutilized annual leave and presuming that the defendant did not deposit the pension contribution to the pension fund decided for the defendant to pay the pension contributions back to him. This comment questions the legality of this decision. Having examined relevant legal provisions and literature, it argues that while the Court had duty to ensure that the plaintiff’s claims were factually and legally founded before it judges in the plaintiff’s favor irrespective of the defendant’s default, it is improper for it to judge in the plaintiff’s favor merely because the defendant defaulted.