Wakilii

Batabane Anatole v Busoga Forestry Co. Ltd (Labour Dispute Reference No. 15 of 2021)

Industrial Court · [2021] UGIC 118 · 2021 Claim Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference arising from labour complaint
Decision
Claimant's claim for constructive dismissal and acting allowance succeeded; awarded general damages and acting allowance with interest

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the unilateral redesignation of the claimant's job title from Finance Manager/Chief Accountant to Chief Accountant - statutory and legal compliance, coupled with the creation of a superior Financial Controller position without the claimant's consent and without adverse job appraisals or a hearing, constituted a demotion and serious breach of contract amounting to constructive dismissal. The claimant was entitled to acting allowance for the period he performed duties of Acting Managing Director, calculated as the difference between his salary and that of the Managing Director.

Outcome

Claimant's claim for constructive dismissal and acting allowance succeeded; awarded general damages and acting allowance with interest

Facts

The claimant was employed as Finance Manager/Chief Accountant by the respondent on 27 December 2010 at a monthly salary of UGX 4,500,000. He was to head the Finance and Accounting operations of Green Resources Uganda companies and report to the Managing Director. In 2020, the respondent undertook a restructuring exercise which involved creating a new position of Financial Controller and redesignating the claimant's position as Chief Accountant - statutory and legal compliance. The claimant was informed on 27 January 2021 that the Financial Controller would join on 1 February 2021 and oversee leadership of the Accounting department. The claimant was expected to sign an addendum by 28 January 2021 but refused, viewing the changes as a demotion. He left work on 28 January 2021. The claimant also claimed he had acted as Managing Director for two months when the previous Managing Director was relieved of duties, but was never paid an acting allowance.

Issues

  1. Whether the claimant was constructively dismissed by the respondent.
  2. Whether the claimant was entitled to acting allowance for performing duties of Acting Managing Director.

Orders

  • Claim succeeds.
  • Claimant entitled to acting allowance for two months at the difference between his salary and that of the Managing Director.
  • Claimant awarded general damages for constructive dismissal.
  • Interest at 15% per annum from date of award until payment in full.
  • Prayer for salary for remaining period of contract denied.
  • Prayer for exemplary damages denied.
  • No order as to costs.

Rules and key headnotes

Employment & Labour — Constructive Dismissal — Unilateral Change to Job Title and Reporting Line
A unilateral change to an employee's job title and reporting line without the employee's consent constitutes a breach of contract where the job title is a particular of employment under Section 59 of the Employment Act and a major component of the contract of service.
Employment & Labour — Constructive Dismissal — Demotion Without Hearing or Adverse Appraisal
The redesignation of an employee to a position junior to a newly created superior position, without a hearing or any adverse job appraisals, amounts to a demotion and constitutes serious breach of contract giving rise to constructive dismissal.
Employment & Labour — Constructive Dismissal — Reasonable Time to Respond
An employee who takes action at the time he is expected to sign an addendum formalising changes to his employment terms does not act in unreasonable time for purposes of establishing constructive dismissal, even where the proposed changes were communicated earlier.
Employment & Labour — Acting Allowance — Entitlement Where Signatory Rights Assigned
Where an employee is assigned signatory and executory rights on behalf of a company following the departure of a Managing Director, and performs the duties of Acting Managing Director for a period, the employee is entitled to acting allowance for that period.
Damages & Quantum — Salary for Remaining Contract Period — Not Awardable as Anticipatory Earnings
Salary for the remaining period of a contract following termination is not awardable as anticipatory future earnings; compensation for loss of earnings resulting from termination is properly awarded as general damages.

Legislation cited (2)

Cases cited (5)

  • Nyakabwa J. Abwooli v Security 2000 Ltd (Labour Dispute Claim No. 108 of 2014)
  • Mumbwa Paul Vs Ndejje University
  • Yudaya Musisi Vs Orient Bank Limited
  • Ueafode Micro-finance Ltd (MDI) v Mark Kyoribona (Labour Dispute Appeal No. 034 of 2019)
  • African Field Epidemiology Network (AFENET) v Peter Waswa Kityaba (Civil Appeal No. 124 of 2017)

Full judgment

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

Batabane_Anatole_v_Busoga_Forestry_Co._Ltd_(Labour_Dispute_Reference_No._15_of_2021)_[2021]_UGIC_118_(2_December_2021)
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.