Wakilii

Atanasius Kakwemeire v National Medical Stores (Labour Dispute Reference No. 011 of 2022)

Industrial Court · [2026] UGIC 21 · 2026 Claim Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference arising from Labour Dispute Complaint No. MGLSD/LC/035 of 2021 concerning termination of employment
Decision
Claimant granted declaration that contract variation was unlawful but dismissed for insubordination; claim for unfair dismissal dismissed

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Holding

The Industrial Court held that the Respondent's unilateral variation of the Claimant's employment contract from Chief Pharmacist to Chief Quality Control Officer without consent was unlawful. However, the Claimant's dismissal for insubordination was both procedurally and substantively fair. The Claimant, by continuing to work under protest without pursuing formal grievance procedures, remained subject to the Respondent's lawful instructions and discipline. The Court granted a declaration that the contract variation was unlawful but dismissed claims for unfair dismissal and damages.

Outcome

Claimant granted declaration that contract variation was unlawful but dismissed for insubordination; claim for unfair dismissal dismissed

Facts

The Claimant was employed by National Medical Stores on a four-year fixed-term contract as Chief Pharmacist from 15 November 2017. In February 2020, the Respondent restructured its Quality Control and Quality Assurance Department, creating a new Quality Control Department and redesignating the Claimant as Chief Quality Control Officer. The Claimant signed the amended contract but immediately protested the change via email, maintaining he remained the statutory Chief Pharmacist. He continued working but refused to accept the new designation, leading to allegations of insubordination, dishonesty, disobeying lawful orders, and refusing to perform duties. Following a disciplinary hearing before the Board Disciplinary Committee on 11 December 2020, the Respondent terminated the Claimant's employment on 15 December 2020 and paid terminal benefits.

Issues

  1. Whether the Claimant's employment was unlawfully terminated.
  2. What remedies are available to the parties?

Orders

  • Declaration entered that the Respondent's unilateral variation of the Claimant's employment contract was unlawful.
  • The Claimant's claim for a declaration of unlawful and unfair dismissal dismissed.
  • No order as to costs.

Rules and key headnotes

Contract of Employment — Variation — Requirement for Consent
A unilateral variation of a fundamental term of an employment contract, such as an employee's job title, designation, or core duties, is unlawful unless expressly authorized by law or the contract itself and accepted by the employee. Section 58(4)(c) of the Employment Act requires that where there has been an agreed change affecting job title, the employer must issue written notice, and the use of the word 'agreed' requires the employee's consent before any change is implemented.
Managerial Prerogative — Limits on Exercise
While employers have a statutory managerial prerogative to reorganize or restructure their organization for efficiency, including under section 10(e) and (f) of the National Medical Stores Act, this prerogative must be exercised fairly. A reorganization that varies an employee's contract without meeting the contractual requirement for consent constitutes an unfair exercise of managerial prerogative.
Dismissal — Distinction from Termination
The termination of a contract of employment for misconduct or poor performance is a dismissal. Where termination is for other reasons such as retirement or expiry of a fixed term, that is classified as termination. All dismissals are terminations, but not all terminations are dismissals. The correct approach is for the court to interrogate the totality of circumstances to determine whether the employer has fashioned a dismissal as a termination.
Procedural Fairness — Right to Fair Hearing
To meet the standard of procedural fairness for dismissal under section 65 of the Employment Act, the employer must hold a hearing at which the employee is given notice in writing, allowed sufficient time to prepare a defence, informed of the allegations, and advised of their rights to respond, be accompanied, cross-examine, produce witnesses, and present their case before an impartial committee.
Substantive Fairness — Standard of Proof
To establish substantive fairness for dismissal, there must be a clear rulebook defining gross misconduct and attendant sanctions, the conduct must fundamentally breach the contract, the employer must prove the grounds to a reasonable degree, and the decision must fall within the band of reasonable responses. The employer must verify the misconduct, though a disciplinary hearing need not operate as a court. The standard is proof on the balance of probabilities.
Working Under Protest — Continued Duty of Obedience
An employee who continues to work after a unilateral variation of their contract, while protesting the change, remains in the employment relationship and subject to the employer's lawful instructions. The employee's duty of obedience continues unless the instruction is unlawful or harmful to health. By remaining in employment under protest without pursuing formal grievance procedures, the employee agrees to work under the varied terms while preserving their right to challenge the variation.
Insubordination — Wilful Refusal to Obey Lawful Instructions
Insubordination in the workplace context refers to a wilful and serious refusal by an employee to adhere to a lawful and reasonable instruction of the employer, or conduct which poses a deliberate and serious challenge to the employer's authority. A blatant, persistent, and public refusal to comply with lawful and reasonable instructions, including refusal to accept a reassigned position after contract variation, constitutes gross insubordination that may justify dismissal.

Legislation cited (18)

Cases cited (54)

Full judgment

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Atanasius Kakwemeire v National Medical Stores (Labour Dispute Reference No. 011 of 2022) [2026] UGIC 21 (31 March 2026)
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.