Wakilii

Adilo v Afro-plast Enterprises Limited (Labour Dispute Reference 244 of 2019)

Industrial Court · [2023] UGIC 42 · 2023 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Reference from Labour Officer following arbitration of unfair dismissal complaint, seeking damages for unlawful suspension
Decision
Claimant awarded general damages of UGX 6,902,000 and costs

Observed later treatment

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Holding

The Industrial Court held that while the reference was procedurally irregular (filed after a Labour Officer's decree had been executed), the Court retained jurisdiction to adjudicate the dispute. The Court found that the Claimant's lawful suspension was improperly managed, resulting in loss of employment. The Claimant was entitled to general damages of UGX 6,902,000 for the unlawful suspension that led to his loss of employment, calculated with reference to his monthly earnings and period of service. Reinstatement was inappropriate where trust between employer and employee had broken down.

Outcome

Claimant awarded general damages of UGX 6,902,000 and costs

Facts

The Respondent employed the Claimant as a Machine Operator in 2004. In December 2017, the employer found him away from his workstation, asked him to leave the premises, and denied him access to his workplace. The Claimant filed a complaint with the labour office. The Commissioner for Labour found that while the suspension was lawful, it had not been managed under the Employment Act. The Commissioner ordered payment of UGX 5,764,000 representing terminal benefits (notice pay, severance, compensatory payment, repatriation, and transport refund), which was paid. The Claimant then filed a reference to the Industrial Court seeking damages. The Labour Officer and the Claimant both filed references on 16 May 2019. A decree was entered and executed on 7 November 2020. The Claimant did not wish to return to work for the Respondent.

Issues

  1. Whether the reference for damages is properly before the Industrial Court.
  2. Whether the Claimant is entitled to general, punitive, and aggravated damages for unlawful termination.

Orders

  • The Claimant is entitled to general damages in the sum of UGX 6,902,000.
  • The Respondent shall pay the Claimant his costs of the claim.

Rules and key headnotes

Employment & Labour — Industrial Court Jurisdiction — Procedural Irregularity — Reference After Decree Executed
Where a reference to the Industrial Court is procedurally irregular because it was filed after a Labour Officer's decree had been entered and executed, the Court retains jurisdiction to adjudicate the dispute on its merits, particularly where the reference raises questions of law or fact that require determination and where counsel have agreed on the issues for determination.
Employment & Labour — Suspension — Unlawful Management — Loss of Employment
Where an employer lawfully suspends an employee but fails to manage the suspension in accordance with the Employment Act, and the employee consequently loses employment, the employee is entitled to general damages for the loss occasioned by the employer's wrongful act, even where the initial suspension was lawful.
Employment & Labour — Reinstatement — Breakdown of Trust — Appropriateness of Remedy
Reinstatement is not an appropriate remedy where the employee does not wish to be re-employed and trust between employer and employee has broken down, even where the employer considers the employment relationship to be continuing. In such circumstances, damages are the appropriate remedy.
Damages & Quantum — General Damages — Wrongful Dismissal — Assessment Principles
In assessing general damages for wrongful dismissal or unlawful termination, the principle of restitutio in integrum applies analogously to loss of employment and future prospects of re-employment. The Court must consider actual loss of earnings up to the date of the award, prospective losses, the employee's age, monthly earnings, and period of service.
Civil Procedure — Costs — Labour Disputes — Exception to General Rule
In labour disputes, the award of costs is the exception rather than the rule. Costs may be awarded where there is some form of misconduct by the unsuccessful party, including failure to properly manage a suspension and failure to timely honour a Labour Officer's orders.

Legislation cited (12)

Cases cited (10)

  • Engineer John Eric Mugyenzi v Uganda Electricity Generation Co Ltd (Court of Appeal Civil Appeal No. 167 of 2018)
  • Industrial Promotion Services v Nelson Kasingye Agaba (Labour Dispute Miscellaneous Application No. 001 of 2021)
  • Bank of Uganda v Betty Tinkamanyire (Supreme Court Civil Appeal No. 12 of 2007)
  • Dr Omona Kizito v Maries Stopes Uganda (Labour Dispute Claim No. 033 of 2015)
  • Bank of Uganda v Joseph Kibuuka & 4 Others (Court of Appeal Civil Appeal No. 281 of 2016)
  • Stroms v Hutchinson [1950] AC 515
  • Stanbic Bank (U) Ltd v Constant Okou (Civil Appeal No. 60 of 2020)
  • David Bosa v Post Bank Uganda Ltd (Labour Dispute Reference No. 79 of 2018)
  • Mariam Kaggwa v VG Keshawala & Sons (Labour Dispute Reference No. 120 of 2020)
  • Joseph Kalule v GIZ (Labour Dispute Reference No. 109 of 2020)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Adilo_v_Afro-plast_Enterprises_Limited_(Labour_Dispute_Reference_244_of_2019)_[2023]_UGIC_42_(30_May_2023)
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.