Wakilii

Akeny v Uganda Communications Commission (Labour Dispute Claim 23 of 2015)

Industrial Court · [2018] UGIC 37 · 2018 Claim Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute claim arising from High Court matter HCT 192/2013 for unlawful termination of employment
Decision
Claimant's termination declared unlawful; awarded general damages, outstanding terminal benefits, and payment of outstanding loan balances with interest; reinstatement and aggravated damages denied

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that an employer must give an employee reasons for contemplated dismissal and an opportunity to respond before reaching a decision to dismiss, as required by Employment Act s.66. Proof of reasons under s.68 must occur before termination, not later in court. Discussions and appraisals do not constitute a disciplinary hearing. Where an employee is terminated without being notified of reasons or accorded a hearing, the termination is unlawful. An unlawfully dismissed employee is entitled to general damages and terminal benefits, and the employer must pay outstanding loan balances where recovery was premised on salary deductions.

Outcome

Claimant's termination declared unlawful; awarded general damages, outstanding terminal benefits, and payment of outstanding loan balances with interest; reinstatement and aggravated damages denied

Facts

On 29 March 2011, the Respondent employed the Claimant on a three-year contract as Manager, Strategic Business Planning, at a monthly salary of UGX 8,500,000. He was confirmed on 8 November 2011. The Claimant was terminated without being given reasons or an opportunity to respond. The Respondent's witnesses testified that the termination was based on poor performance and misconduct, including failure to complete assignments, unexplained absences, and improper conduct while on a trip to Gambia. The Claimant had received a good appraisal score of 78/100 in July 2012. At termination, the Claimant had an outstanding loan balance of UGX 28,032,854, which the Respondent deducted from his terminal benefits. The Claimant received his provident fund contribution of UGX 17,951,486 fifteen months after termination.

Issues

  1. Whether the Claimant was lawfully terminated?
  2. Whether the Claimant is entitled to the remedies claimed?

Orders

  • A declaration that the Claimant was unlawfully terminated.
  • An award of UGX 90,000,000 as General Damages.
  • An award of UGX 12,077,573 as outstanding terminal benefits.
  • Payment of outstanding loan balances of UGX 28,032,854.
  • Interest at 20% per annum on awards 2, 3 and 4 until full and final payment.
  • No order as to costs.

Rules and key headnotes

Termination of Employment — Procedural Requirements — Notification and Hearing Before Dismissal
Before reaching a decision to dismiss an employee on grounds of misconduct or poor performance, an employer must explain to the employee the reason for which the employer is considering dismissal and give the employee an opportunity to respond, in accordance with Employment Act s.66.
Termination of Employment — Proof of Reason — Timing of Proof
Proof of the reason or reasons for dismissal or termination as provided under Employment Act s.68 must be done before reaching the decision to terminate or dismiss the employee, not later in court proceedings.
Termination of Employment — Disciplinary Hearing — Distinction from Performance Discussions
Discussions and appraisals held between employees and their employers touching on the employee's work performance do not add up to a disciplinary hearing and can only be evidence in support of good or poor performance at a disciplinary hearing.
Statutory Interpretation — Employment Act — Complementary Reading of Sections 66 and 68
Sections 66 and 68 of the Employment Act, being concerned with the same subject of procedures to be adopted when considering termination or dismissal of employees, should be construed together as complementing one another.
Remedies — Reinstatement — Discretion of Court
A court should not use its powers to force an employer to retake an employee it no longer wishes to engage, and reinstatement is not appropriate where trust and confidence between employer and employee have been badly damaged by the time the dispute reaches court for adjudication.
Remedies — Terminal Benefits — Outstanding Loan Balances
Where an employee is unlawfully terminated, the employer is liable to pay the employee's outstanding loan balances if recovery was solely pegged on the employee's salary, and deduction of outstanding loan balances from the employee's terminal benefits is not correct.
Remedies — General Damages — Assessment
General damages for unlawful termination are intended to bring an aggrieved party to as near as possible in monetary terms to the position the claimant was in before the injury occasioned by the respondent occurred, and their measurement is at the discretion of the court.

Legislation cited (9)

Cases cited (19)

  • Florence Mufumbo v DFCU (Labour Dispute Claim No. 138 of 2014)
  • Benon Kanyangoga and Others v Bank of Uganda (Labour Dispute Claim No. 80 of 2014)
  • Donna Kamuli v DFCU Bank (Labour Dispute Claim No. 2 of 2015)
  • Moses Obonyo v MTN (U) (Labour Dispute Claim No. 45 of 2015)
  • Ebiju James v Umeme Ltd (High Court Civil Suit No. 133 of 2012)
  • QUEENVELLE ATIENO OWALA VS CENTRE FOR CORPORATE GOVERNANCE (INDUSTRIAL COURT OF KENYA, CAUSE 81 OF 2012)
  • Prof Gilbert Baliseka Bukenya v Attorney General (Constitutional Petition No. 30 of 2011)
  • PK Semwogerere and Another v Attorney General (Constitutional Appeal No. 1 of 2002)
  • SMITH DAKOTA VS NORTH CAROLINA 192, US 268
  • Bank of Uganda v Betty Tinkamanyire (Supreme Court Civil Appeal No. 12 of 2007)
  • Moses Ssali aka Bebe Cool and Others v Attorney General (High Court Civil Suit No. 86 of 2010)
  • Tushabomwe v Equity Bank Ltd (Labour Dispute Claim No. 146)
  • Stanbic Bank v Kiyimba Mutaale (Supreme Court Civil Appeal No. 02 of 2010)
  • VIRES VS NATIONAL DOCK LABOUR BOARD (1958) 1 QB 658
  • ROOKES VS BARNARD [1964] ALLER
  • Okello Nymlod v Rift Valley Railways (High Court Civil Suit No. 195 of 2009)
  • Interfriegt Forwarders (U) Ltd v East Africa Development Bank (Supreme Court Civil Appeal No. 33 of 1992)
  • Ms Fangmin v Belextours and Travel Limited (Supreme Court Civil Appeal No. 06 of 2013)
  • Crane Bank v Belex Tours and Travel (Supreme Court Civil Appeal No. 01 of 2014)

Full judgment

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

Akeny_v_Uganda_Communications_Commission_(Labour_Dispute_Claim_23_of_2015)_[2018]_UGIC_37_(21_December_2018)
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.