Labor Court orders Activa Insurance to pay US$436K to former employee

Published: June 6, 2025

MONROVIA – The Labor Court at the Temple of Justice has ordered Activa International Insurance Company to pay a former employee more than $436,000 in end-of-service benefits, ruling the company liable for unfair labor practices and wrongful dismissal.

In a decision issued Tuesday, June 3, Judge Joseph Kollie affirmed, with modifications, an earlier ruling by a Ministry of Labor hearing officer in favor of Saye Galezeh, a former employee of the insurance firm.

According to the ruling, Activa Insurance is required to pay Galezeh $430,476.48 in end-of-service benefits, plus $6,000 for three months of accrued leave. The court also ordered the company to provide an air ticket for Galezeh to return to the United States.

Following the decision, the court directed its clerk to prepare a Bill of Costs, which will be placed in the hands of the sheriff for service on all legal representatives involved for taxation.

Activa Challenges Ruling

Activa had filed a petition for judicial review, arguing that the hearing officer at the Ministry of Labor committed several “reversible errors” by awarding an excessive amount. The company insisted that the proper end-of-service benefit, based on its internal actuarial matrix, should have been $249,392.10—not the $466,488 originally awarded.

Activa also objected to the $15,000 resettlement and migration compensation awarded to Galezeh, arguing that such a benefit was not provided for in his employment contract and was therefore unwarranted.

Additionally, the company challenged the $24,000 awarded for accrued annual leave, claiming Galezeh had worked only three months during the year and should have received a prorated amount rather than compensation for the full 12 months.

The company requested the court to vacate the ruling entirely.

Jurisdiction Dispute

Activa also challenged the Ministry of Labor’s jurisdiction, arguing that since Galezeh’s employment contract was private and governed by its own terms, the Ministry had no authority to hear the case unless statutory labor rights were in dispute.

However, Judge Kollie rejected the argument, affirming that the Ministry of Labor—and subsequently the National Labor Court—has jurisdiction over all employment matters conducted within the territorial limits of Liberia, regardless of the nationality of the parties.

“The court disagrees with Activa’s claim that the Civil Law Court is the appropriate venue for this matter,” Judge Kollie ruled. “The National Labor Court has jurisdiction over employer-employee disputes once administrative remedies have been exhausted and a verified petition is filed for judicial review.”

The court’s decision reinforces the Ministry’s authority under Section 1.5(a) of the Decent Work Act, which affirms jurisdiction over labor disputes involving work performed in Liberia.