LEGAL PRINCIPLE: LABOUR LAW — Contract of Employment — Categories — Master and Servant Distinguished
PRINCIPLE STATEMENT
Employments fall into three categories: master and servant; office held at pleasure; and employment governed by statute.
RATIO DECIDENDI (SOURCE)
"Generally employments fall into three categories, viz; (a) master and servant; (b) A servant holds an office at pleasure; (c) employment that is governed by statute. Both parties agree that the present case does not fall within the third class. It is not a case where the tenure of office of the servant is governed by statute. It is also common ground that the present case is one of master and servant."
EXPLANATION / SCOPE
Employment relationships are categorised into three types: (1) master and servant (common law contract); (2) office held at pleasure (e.g., political appointees); and (3) statutory employment (governed by statute with special protections). The classification determines the applicable legal framework, including remedies for termination. Master and servant relationships are governed by contract law; the remedy for wrongful termination is damages, not reinstatement. Statutory employment may provide additional protections and reinstatement. The category determines whether natural justice applies. The parties’ agreement and the governing statute determine the classification. The court must first classify the employment before applying the relevant principles. The rule provides clarity in employment disputes.