Wakilii

Bukenya v The Registered Trustees of the Province (Labour Dispute Claim 8 of 2012)

Industrial Court · [2015] UGIC 13 · 2015 Judgment for Claimants AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance labour dispute claim arising from High Court Civil Suit No. 173 of 2010
Decision
Claimants awarded balance of gratuity plus general damages for delay; 1st claimant to pay subsidised rent and vacate premises upon full payment of terminal benefits

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Industrial Court held that although the employer requested early retirement before the mandatory retirement age, the employees accepted the request and therefore were not forced to retire. The employees were entitled to gratuity computed according to the Provincial Board of Finance formula approved in 2005. The employer was not entitled to special damages for loss of rent because the employee was entitled under the Employment Act to remain housed until full payment of terminal benefits, but the employee must pay subsidised rent from April 2008 until final settlement.

Outcome

Claimants awarded balance of gratuity plus general damages for delay; 1st claimant to pay subsidised rent and vacate premises upon full payment of terminal benefits

Facts

The 1st claimant Bukenya Steven was employed by the defendant Church of Uganda Province as a Telephone Operator in 1977 and promoted to Estates Officer/Administrative Assistant with a monthly salary of UGX 408,000. The 2nd claimant Nabukera Harriet was employed in 1985 as an Accounts Assistant and promoted to Assistant Accountant with a monthly salary of UGX 429,000. In March 2008, the Provincial Secretary requested both claimants to retire by 31 March 2008, although they were both 51 years old and had not reached the mandatory retirement age of 60 for non-clergy employees. Both claimants accepted the request in writing dated 20 March 2008. The respondent paid them UGX 16,596,000 and UGX 11,148,000 respectively as gratuity. The claimants contended they were entitled to higher gratuity computed according to a formula approved by the Provincial Board of Finance in June 2005. The 1st claimant remained in employer-provided housing after retirement, paying subsidised rent of UGX 153,321 per month, and refused to vacate until full payment of terminal benefits.

Issues

  1. Whether the claimants' retirement was voluntary?
  2. Whether the claimants are entitled to gratuity and if so at what rate?
  3. Whether the respondent is entitled to special damages for the loss of rent from the 1st claimant?
  4. What remedies are available?

Orders

  • The claimants to be paid the balance of gratuity at the new rate, from the time of filing suit in the High Court until payment in full at the court rate.
  • The claimants' claim for general damages for forced retirement dismissed.
  • The 1st claimant Mr. Bukenya to vacate the house on receipt of full and final payment of his terminal benefits.
  • The 1st claimant to pay the respondent UGX 153,321 per month from April 2008 until full and final payment of his terminal benefits.
  • General damages for the claimants for delay in payment of the full amount of gratuity at UGX 1,500,000 each.
  • No punitive and exemplary damages granted.
  • The respondent to pay costs of the suit.

Rules and key headnotes

Employment & Labour — Retirement — Early Retirement — Voluntary Acceptance
Where an employer requests an employee to retire before the mandatory retirement age and the employee accepts the request in writing without contesting it, the retirement is not forced and the employee cannot claim damages for forced retirement.
Employment & Labour — Gratuity — Entitlement — Employer Policy
Gratuity is a benefit plan and retirement benefit offered by an employer to an employee upon leaving employment. Where an employer's constitution and canons provide for retirement benefits schemes and the employer's finance board approves a gratuity formula, employees are entitled to gratuity computed according to that formula, notwithstanding the employer's denial of having a gratuity policy.
Employment & Labour — Gratuity — Computation — Binding Decisions of Finance Board
Where an employer's constitution empowers a Provincial Board of Finance to administer the employer's resources and make decisions on salary structures and retirement benefits, and the constitution provides for delegation of powers to boards and committees, the decisions of the finance board are binding on the employer and employees are entitled to gratuity computed according to the approved formula.
Employment & Labour — Terminal Benefits — Housing — Right to Remain Until Payment
Under section 43(5) of the Employment Act 2006, where an employee is being housed by the employer, the employee shall not be required to vacate the premises until he or she has been paid his or her terminal benefits in full. An employer cannot claim damages for loss of rent where the employee remains in employer-provided housing pending full payment of terminal benefits.
Employment & Labour — Terminal Benefits — Housing — Obligation to Pay Subsidised Rent
Where an employee was housed at a subsidised rent during employment and remains in the premises after retirement pending full payment of terminal benefits, the employee is obliged to continue paying the subsidised rent from the date of retirement until full and final payment of terminal benefits.

Legislation cited (1)

Cases cited (1)

  • Katurebe Eridad and Wanzala Ivan v Uganda Revenue Authority (High Court Civil Suit No. 107 of 2010)

Full judgment

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

Bukenya_v_The_Registered_Trustees_of_the_Province_(Labour_Dispute_Claim_8_of_2012)_[2015]_UGIC_13_(5_February_2015)
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.