Ben Rhaeim Aimen v Granada Hotels (U) Limited (Labour Dispute Appeal 2 of 2023)

Observed later treatment

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

Holding

The Industrial Court held that the Appellant was serving a probationary period within a one-year fixed-term contract, not a probationary contract. The Court found that Section 66 of the Employment Act, which mandates a fair hearing before dismissal for poor performance or misconduct, applies even during a probationary period. The Appellant's dismissal without a hearing was therefore unlawful. The Court awarded compensation for lack of fair hearing, severance pay, additional public holiday pay, and general damages, with interest at 21% per annum.

Outcome

Appeal substantially succeeded; Appellant awarded compensation for unlawful dismissal, severance pay, public holiday pay differential, and general damages with interest

Facts

The Appellant, a Tunisian national, was recruited as a Cost Controller by the Respondent on a one-year fixed-term contract commencing 10 May 2021, with a six-month probation period. On 28 October 2021, approximately five and a half months into employment, the Respondent terminated the Appellant's employment citing unsatisfactory performance following an audit. The Appellant was given two weeks' notice as provided in the contract. The Respondent paid terminal benefits including salary, notice pay, public holiday pay, pending off days, and annual leave. The Appellant filed a complaint with the Labour Officer alleging unlawful termination without a fair hearing. The Labour Officer found the termination lawful, holding that the Appellant was on a probationary contract to which Section 67 of the Employment Act applied, exempting the employer from the fair hearing requirement under Section 66. The Appellant appealed to the Industrial Court.

Issues

1. Whether the Labour Officer erred in refusing to admit the Respondent's Human Resource Manual as evidence.
2. Whether the Appellant was serving under a probationary contract or a probationary period within a fixed-term contract at the time of termination.
3. Whether the Appellant was entitled to a fair hearing before dismissal for poor performance during the probationary period.
4. Whether the Appellant was entitled to four weeks' net pay for failure to be accorded a fair hearing under Section 66(4) of the Employment Act.
5. Whether the Appellant was entitled to compensatory and additional wages.
6. Whether the Appellant was entitled to payment for work on public holidays, weekends, and annual leave.
7. Whether the Appellant was entitled to severance allowance.
8. Whether the Labour Officer erred in refusing to refer the issue of general damages to the Industrial Court.

Orders

• The Labour Officer's finding that the Appellant was serving a probationary contract is set aside; the Appellant was serving a probationary period under a fixed-term contract.
• The Appellant was not given a fair hearing and was unlawfully dismissed.
• The Labour Officer's order that the prayer for payment on public holidays fails is set aside; the Respondent shall pay the Appellant US$ 332.4 as the difference between what was paid and what was due.
• The Labour Officer's finding that the Appellant was not entitled to severance pay is overturned; the Respondent shall pay the Appellant US$ 750 as severance pay.
• The Respondent shall pay the Appellant US$ 1,500 as compensation for failure to grant a fair hearing under Section 66(4) of the Employment Act.
• The Respondent shall pay the Appellant US$ 1,500 in general damages.
• All monetary awards shall attract interest at the rate of 21% per annum from the date of the award until payment in full.
• No order as to costs.

Rules and key headnotes

Legislation cited (15)

• Employment Act 2006 s.66
• Employment Act 2006 s.67
• Employment Act 2006 s.54(2)
• Employment Act 2006 s.54(4)
• Employment Act 2006 s.87
• Employment Act 2006 s.94(3)
• Employment Act 2006 s.13
• Employment Act 2006 s.93(2)
• Employment Act 2006 s.27(2)
• Constitution of Uganda Article 44(c)
• Constitution of Uganda Article 40
• Labour Disputes (Arbitration and Settlement) Act s.18
• Evidence Act Cap.6 s.55
• Evidence Act Cap.6 s.1
• Judicature Act s.14

Cases cited (35)

• Father Nanenslo Begumisa and 3 Ors v Eric Tiberaga [2004] KALR 236
• Kifamunte Henry v Uganda (S.C Criminal Appeal No. 10 of 1997)
• Abdallah Kimbugwe v Kiboko Enterprises Ltd (LDA 13 of 2021)
• Buryahika Stephen & Anor v Hoima Sugar Ltd & Ors (H.C.C.S No. 2015)
• Mbogo v Shah and Anor [1968] EA 932
• Engineer John Eric Mugyenzi v Uganda Electricity Generation Co Ltd (C.A.C.A No. 167 of 2018)
• Ozuu Brothers Enterprises v Ayikoru Milka (High Court Civil Revision No. 0002 of 2016)
• Rajasthan State Road Transport Corporation v Krisjan Kant, 1995 AIR 1715, 1995 SCC(5)75
• Maudah Atuzarirwe v Uganda Registration Services Bureau & others (H.C.M.C No. 249 of 2013)
• David Wangi v People Performance Group Ltd (LDC 05 of 2018)
• Mbonyi v Appliance World Limited (LDR 103 of 2016)
• Charles Onyango Obbo & Anor v Attorney General (Constitutional Petition No. 15 of 1997)
• Nyamuchoncho & Anor v Attorney General & 2 Ors (M.C No. 241 of 2017)
• Mark E Kamanzi v National Drug Authority and Another (H.C.M.A 138 of 2021)
• David Akonye v Libya Oils (LDC 082 of 2014)
• St. Giles Medical Rehabilitation Centre v Patsanza, Case SC 668 of 2015; Ref Case LC/H/ 116 of 2013; SC 59 of 2018) [2018] ZWSC 59
• Ubuntu Education Fund v Paulsen N.O and Others (PA12/17) [2019] ZALAC 56
• Simeon O. Ihezukwu v University of Jos & Others (SC 165/1987) [1990] NGSC 49
• James Ebiju v Umeme Ltd (H.C.C.S No. 133 of 2012)
• Re Gulf Oil/Cities Serv. Tender Offer Litig., 725 F. Supp. 712, 729-30 (S.D.N.Y. 1989)
• Veneto Hotel & Casino, S.A. v. German American Capital Corp., 2018 NY Slip Op. 02414
• Hilda Musinguzi v Stanbic Bank (U) Ltd (SCCA 05/2016)
• Monica Munira Kibuchi & Ors v Mount Kenya University (Constitutional Petition No. 64 of 2016)
• United States International University v The Attorney General & 2 others [2012] eKLR
• Kyamanywa Simon v Uganda (S.C. Crim Appeal No. 16 of 1999)
• Nicholas Mugisha v Equity Bank Ltd (LDR 281 of 2021)
• Geogas SA v Tranno Gas Ltd(the Baleares) 1993 1 Lloyds Rep 215 at 228
• Ugafode Microfinance v Mark Kyoribona (LDA No. 034 of 2019)
• Insight Management Ltd v Anguyo Ronald (LDA No. 13 of 2020)
• Peter Waiswa Kityaba v African Epidemiology Network (LDR 84 of 2016)
• Donna Kamuli v DFCU Bank Ltd (LDC 002/2015)
• Francis Dominic Meru v Nakasero Hospital (LDR 223 of 2019)
• Stroms v Hutchinson [1950] AC 515
• Stanbic Bank (U) Ltd v Constant Okou (Civil Appeal No. 60 of 2020)
• Joseph Kalule v GIZ (LDR No. 109/2020)

Cases citing this judgment (3)

How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.

• Ugafode Microfinance Limited v Peter Clever Katende (Labour Dispute Appeal No. 007 of 2023)
• Kangave Mustafa v Pride Microfinance Limited (MDI) (Labour Dispute Reference No. 88 of 2020)
• Ocen v World Vision-Uganda (Labour Dispute Reference No. 01 of 2021)

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