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Mugyenzi v Uganda Electricity Generation Co Ltd (Civil Appeal No 167 of 2018)

Court of Appeal · [2019] UGCA 120 · 2019 Appeal Allowed ✦ AI-generated summary ↓ Download
Jurisdiction
Uganda
Case Type
Appeal from a ruling of the Industrial Court on a point of law under section 22 of the Labour Disputes (Arbitration and Settlement) Act
Decision
Industrial Court's striking-out order set aside; dispute remitted to the Industrial Court for adjudication

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Holding

The Court of Appeal allowed the appeal, holding that a point of law such as limitation may be raised at any stage where the facts are not in dispute, even if not pleaded, but that section 71(2) of the Employment Act does not create a limitation period barring an action in a court of law; it merely prescribes the time within which to lodge a complaint with a Labour officer, who has discretion to admit complaints out of time. The Industrial Court erred in striking out the claim as time barred. The dispute was referred back to the Industrial Court for expeditious adjudication under section 8(2) of the Labour Disputes (Arbitration and Settlement) Act.

Facts

The appellant was employed by Uganda Electricity Generation Company Ltd as Chief Executive Officer / Managing Director under a written three-year contract commencing 17 May 2012. His contract was summarily terminated on 30 July 2014. He lodged a complaint with the Kampala Labour officer in April 2015, alleging unlawful termination under section 69 of the Employment Act and claiming sums totalling approximately UGX 449,252,148, including consolidated salary for the unexpired term, a car in lieu, unpaid gratuity and NSSF contributions. The Labour officer, of the opinion that a substantial question of law or fact had arisen, referred the dispute to the Industrial Court on 12 May 2015 without hearing the respondent. At the hearing the respondent objected that the claim was time barred because the complaint was lodged outside the three-month period prescribed by section 71(2) of the Employment Act. The Industrial Court upheld the objection, held the action time barred and struck it out. The appellant appealed.

Issues

  1. Whether the issue of limitation must be pleaded before it can be entertained, or may be raised at any stage where the facts are not in dispute.
  2. Whether the appellant's claim was time barred under section 71(2) of the Employment Act, 2006.
  3. Whether section 71(2) of the Employment Act creates a limitation period for commencing an action in a court of law.
  4. Whether the Industrial Court properly interfered with the Labour officer's discretion to admit the complaint out of time.
  5. Whether the reference to the Industrial Court was lawfully made and whether the Industrial Court had jurisdiction to adjudicate the dispute.

Orders

  • The appeal substantially succeeds.
  • The decision of the Industrial Court striking out the appellant's claim is set aside.
  • The dispute is referred back to the Industrial Court for expeditious adjudication under section 8(2) of the Labour Disputes (Arbitration and Settlement) Act of the questions referred by the Labour officer.
  • Each party shall bear his or its own costs of the appeal.

Key headnotes

Pleadings — Points of Law — Limitation Raised Without Being Pleaded
A point of law such as limitation may be raised and determined at any stage of proceedings where the relevant facts are agreed or not in dispute, notwithstanding that it was not specifically pleaded under Order 6 rule 6 of the Civil Procedure Rules.
Pleadings — Duty to Plead Exemption from Limitation
Where a suit is instituted after the period prescribed by the law of limitation, the plaintiff bears the duty under Order 7 rule 6 of the Civil Procedure Rules to plead the grounds upon which exemption from limitation is claimed, since limitation is a matter within the plaintiff's knowledge.
Employment Act s.71(2) — Whether a Limitation Period for Court Actions
Section 71(2) of the Employment Act, 2006 does not create a limitation period barring an action for unfair dismissal in a court of law; it merely prescribes the time within which a complaint must be lodged with a Labour officer, who retains discretion to admit a complaint outside the three-month period upon justification.
Jurisdiction of Labour Officer — Infringement of Act versus Breach of Contract
A Labour officer's jurisdiction under section 93 of the Employment Act is confined to complaints alleging infringement of the Act, and orders concerning the terms of a contract of service are corollary to that primary jurisdiction; claims in tort and claims for general, special or punitive damages must be brought before a court of judicature.
Statutory Time Limits — Court's Power to Enlarge Time
A court has no inherent or residual jurisdiction to enlarge a period of time laid down by statute unless extension is permitted by the same law; however, section 71(2) of the Employment Act expressly vests the Labour officer with discretion to allow complaints outside the prescribed three-month period.
Industrial Court — Jurisdiction over References under the Labour Disputes (Arbitration and Settlement) Act
The Industrial Court has jurisdiction under section 8(2) of the Labour Disputes (Arbitration and Settlement) Act to adjudicate upon questions of law and fact, including claims for general, special and punitive damages, arising from references made to it by a Labour officer.

Legislation cited (21)

  • Labour Disputes (Arbitration and Settlement) Act 2006 s.22
  • Labour Disputes (Arbitration and Settlement) Act 2006 s.5
  • Labour Disputes (Arbitration and Settlement) Act 2006 s.4
  • Labour Disputes (Arbitration and Settlement) Act 2006 s.3
  • Labour Disputes (Arbitration and Settlement) Act 2006 s.8
  • Employment Act 2006 s.71
  • Employment Act 2006 s.69
  • Employment Act 2006 s.93
  • Employment Act 2006 s.94
  • Employment Act 2006 s.2
  • Civil Procedure Rules Order 6 rule 6
  • Civil Procedure Rules Order 6 rule 1
  • Civil Procedure Rules Order 6 rule 28
  • Civil Procedure Rules Order 7 rule 1
  • Civil Procedure Rules Order 7 rule 6
  • Civil Procedure Rules Order 7 rule 11(d)
  • Civil Procedure Rules Order 15 rule 2
  • Civil Procedure Rules Order 15 rule 3
  • Limitation Act s.3
  • Advocates Act s.62(1)
  • Parliamentary Elections Act 2005 s.62

Cases cited (9)

  • Tororo Cement Ltd v Frokina International Ltd (Civil Appeal No. 2 of 2001)
  • SN Shah v CM Patel [1961] 1 EA 397
  • Balwant Singh v Kipkoech Arap Serem [1963] 1 EA 651
  • NAS Airport Services Ltd v Attorney-General of Kenya [1959] 1 EA 53
  • Everett v Ribbands [1952] 2 QB 198
  • Auto Garage v Motokov (No 3) [1971] 1 EA 514
  • Jeraj Shariff & Co v Chotai Fancy Stores [1960] 1 EA 374
  • Makula International Ltd v Cardinal Nsubuga [1982] HCB 11
  • Sitenda Sebalu v Sam K Njuba (Election Petition Appeal No. 26 of 2006)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.