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Judgment No. CCZ 2/18
Constitutional Application No. CCZ 86/15
The Legislature was free to classify employers who terminated employees’ contracts on
notice. It was free to choose to impose the financial obligation on them. The Legislature was also
free to classify employees whose contracts were terminated on notice and grant them the benefit
of compensation for loss of employment. The Legislature reacted to the direct adverse impact on
the economic lives of employees whose contracts were terminated on notice at the initiative of
employers who exercised their right to terminate the contracts of employment on notice.
The applicants, who belong to a class of persons obliged to pay minimum retrenchment
packages, cannot allege unequal protection of the law against employees who are in a different
class from theirs. The employees whose contracts were terminated on notice are not comparable
to employers who terminated their contracts on notice for the purpose of the legislation
retrospectively applied to the parties. The employer cannot in the circumstances claim equality
with the employee whose employment he or she or it terminated on notice.
Although the applicants suffered a disadvantage by having the financial obligation imposed
on them retrospectively, they did not share relevant characteristics with the employees whose
contracts they terminated on notice for the purposes of the legislation. The applicants were not
similarly situated as the employees whose contracts they terminated on notice for the purposes of
the retrospective imposition of the financial obligation to pay the employees whose contracts were
terminated the minimum retrenchment package. Equality means sameness in treatment of people
who are similarly situated or placed. Only when people in a similar circumstance are treated
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