Wakilii

Akol v Mark Impex Uganda Limited (Labour Dispute Reference 48 of 2019)

Industrial Court · [2024] UGIC 60 · 2024 Claim Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference arising from failed conciliation before the Ministry of Gender Labour and Social Development
Decision
Claimant's claim for unlawful dismissal allowed; respondent ordered to pay compensation totalling UGX 14,116,666.67 plus interest

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Industrial Court held that the claimant was unlawfully dismissed where the employer summarily terminated him on 1 June 2018 by paying his outstanding salary and asking him to leave, then only invited him to a disciplinary hearing 15 days later. The court found this violated the mandatory procedural requirements under Employment Act s.65 requiring notice of allegations and a fair hearing before dismissal. The claimant was awarded payment in lieu of notice, severance pay, repatriation allowance, untaken leave, and general damages totalling UGX 14,116,666.67.

Outcome

Claimant's claim for unlawful dismissal allowed; respondent ordered to pay compensation totalling UGX 14,116,666.67 plus interest

Facts

The claimant was employed by the respondent as a stores supervisor from 2005, earning UGX 350,000 per month. On 1 June 2018, following an altercation with the Finance Manager over a requisition form that had been altered, the claimant was asked by the Managing Director to leave the premises. He was paid his outstanding salary for May 2018 (UGX 250,000 after deducting an advance) and told he was no longer an employee. The claimant reported the matter to the KCCA Labour Officer on 11 June 2018. On 16 June 2018, the respondent sent a letter inviting the claimant to a disciplinary hearing scheduled for 18 June 2018, which the claimant refused to attend as he had already been dismissed. The matter was referred to the Commissioner of Labour after failed conciliation attempts, then to the Industrial Court. The respondent did not enter appearance despite being served severally.

Issues

  1. Whether the claimant was lawfully terminated?
  2. Whether the claimant absconded from work?
  3. What are the remedies available?

Orders

  • The claimant's dismissal was unlawful.
  • The respondent shall pay the claimant UGX 1,050,000 as payment in lieu of three months' notice.
  • The respondent shall pay the claimant UGX 116,666.67 as payment for seven days' untaken leave for 2018.
  • The respondent shall pay the claimant UGX 350,000 as repatriation allowance.
  • The respondent shall pay the claimant UGX 4,200,000 as severance pay calculated at one month's salary for each of 12 years served.
  • The respondent shall pay the claimant UGX 8,400,000 as general damages for unlawful summary dismissal.
  • Interest at 8% per annum shall accrue on items (a), (b), (c), and (d) from the date of judgment until payment in full.
  • No order as to costs.

Rules and key headnotes

Unfair Dismissal — Procedural Requirements — Notice and Hearing Before Termination
An employer who assigns a reason for termination must, in line with the principles of natural justice and Employment Act s.65, notify the employee of the reason for considering dismissal and give the employee an opportunity to be heard before reaching a decision to dismiss.
Unfair Dismissal — Summary Dismissal — Payment of Outstanding Salary
Where an employer pays an employee outstanding salary and asks the employee to leave the premises, this constitutes summary dismissal even if the employer later attempts to convene a disciplinary hearing.
Fair Hearing — Adequate Notice — Time to Prepare Defence
The right to a fair hearing requires that an employee be given adequate notice of charges both in terms of length of time to prepare and in terms of detail so that the employee knows exactly what he or she is being accused of. A disciplinary hearing scheduled with only one day's notice does not satisfy this requirement.
Unfair Dismissal — Disciplinary Proceedings as Afterthought
Where an employer dismisses an employee and only invites the employee to a disciplinary hearing more than two weeks after the dismissal, the purported disciplinary proceedings constitute an afterthought and the employee cannot be faulted for refusing to participate in such proceedings.
Remedies — Payment in Lieu of Notice
An employee who has been summarily dismissed without notice is entitled to payment in lieu of notice calculated according to Employment Act s.57(3), which provides for three months' notice where the employee has served ten years or more.
Remedies — Untaken Leave — Burden of Proof
A claim for accumulated untaken leave will only succeed where an employee demonstrates that he or she applied for leave and it was denied. However, where an employee is terminated before a calendar year elapses, the employee is entitled to the number of days of leave accrued up to the time of termination.
Remedies — General Damages — Assessment Principles
General damages for unlawful dismissal are assessed on the principle of restitutio in integrum, taking into account the employee's prospects of obtaining alternative employment. Where an employee is of advanced age at the time of dismissal, the court should consider the reduced likelihood of re-employment in assessing damages.

Legislation cited (10)

Cases cited (11)

  • Mufumba v Uganda Development Bank (Labour Dispute No. 138 of 2014)
  • DFCU v Donna Kamuli (Appeal No. 121 of 2016)
  • Hilda Musinguzi v Stanbic Bank (SCCA No. 005 of 2016)
  • Stanbic Bank v Kiyimba Mutale (SCCA No. 02 of 2010)
  • Stanbic Bank v Deogratius Asiimwe (CA No. 18 of 2018)
  • Ebiju James v UMEME Ltd (HCCS No. 133 of 2012)
  • Ridge v Baldwin [1964] AC 40
  • Donna Kamuli v DFCU Bank (LDC No. 002 of 2015)
  • African Field Epidemiology Network (AFNET) v Peter Waswa Kityaba (CA No. 0124 of 2017)
  • Stanbic Bank (U) Limited v Okou (CA No. 60 of 2020)
  • Ugafode Microfinance Ltd (MDI) v Mark Kyoribona (LDA No. 034 of 2019)

Full judgment

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

Akol_v_Mark_Impex_Uganda_Limited_(Labour_Dispute_Reference_48_of_2019)_[2024]_UGIC_60_(16_August_2024)
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.