Wakilii

Kabanza v Great Lakes Regional University (Labour Dispute Reference No. 31 of 2019)

Industrial Court · [2021] UGIC 20 · 2021 Judgment for Claimant AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference arising from complaint of unlawful termination, heard ex parte after respondent failed to appear
Decision
Claimant awarded general damages for unlawful termination; other claims dismissed

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that termination of a Deputy Vice Chancellor for financial reasons without compliance with Employment Act s.81 procedural requirements was unlawful. A mere statement of inability to pay salary is insufficient; the employer must adduce evidence establishing the economic circumstances necessitating termination. The claimant was awarded general damages of UGX 30,000,000. Claims for severance pay and payment in lieu of notice were disallowed as they were not pleaded.

Outcome

Claimant awarded general damages for unlawful termination; other claims dismissed

Facts

The claimant was appointed Deputy Vice Chancellor of the respondent university on 3 August 2017 for a four-year term commencing 6 September 2017. On 1 August 2018, he received a termination letter effective 31 August 2018, citing the university's insufficient financial capacity to sustain the position. The termination letter stated the university could not afford the senior position due to insufficient income and suggested the claimant continue dialogue with the Vice Chancellor about an alternative position the university could afford. The claimant lodged a complaint with the Kanungu Labour Office on 13 September 2018 and filed a memorandum of claim on 15 February 2019. The respondent contended it experienced a financial crisis disabling it from meeting operational expenses including salaries. The matter proceeded ex parte after the respondent failed to appear despite being served through counsel.

Issues

  1. Whether the termination of the claimant's employment was lawful/fair.
  2. Whether the claimant is entitled to the remedies sought.

Orders

  • Declaration that the claimant was unlawfully/unfairly terminated.
  • General damages of UGX 30,000,000 awarded to the claimant.
  • Interest at 12% per annum on general damages from date of award until payment in full.
  • Prayer for special damages denied.
  • Claims for severance pay and payment in lieu of notice disallowed as not pleaded.
  • No order as to costs.

Rules and key headnotes

Employment & Labour — Termination for Economic Reasons — Procedural Requirements under Employment Act s.81
An employer terminating employment for economic, technological, structural or similar reasons must comply with the procedural requirements of Employment Act s.81, including providing relevant information to employees at least four weeks in advance, even where fewer than ten employees are affected.
Employment & Labour — Termination — Sufficiency of Evidence of Economic Circumstances
A mere statement from an employer that it can no longer afford to pay salary is insufficient to justify termination for economic reasons. The employer must adduce evidence beyond a bare assertion to establish the economic circumstances necessitating termination.
Employment & Labour — Termination — Contractual Terms and Statutory Compliance
Termination clauses in contracts of employment, standing alone without alignment to the provisions of the Employment Act, are not sufficient to legally terminate employment. The employer must follow the procedure for termination as expounded in the Employment Act.
Statutory Interpretation — Employment Act — Procedure for Termination
The procedure for termination referred to in case law means the procedure as expounded in Employment Act ss.2, 65, 66 and 68, which respectively refer to definition of termination and dismissal, forms or methods of termination, requirement of a hearing before termination, and reasons for termination.
Civil Procedure — Pleadings — Relief Not Claimed
A party cannot be granted relief which it has not claimed in the plaint or memorandum of claim. Claims for severance pay and payment in lieu of notice not pleaded cannot be awarded even if argued in submissions.

Legislation cited (5)

Cases cited (5)

  • Programme for Accessible Health Communication and Education (PACE) v Graham Nagasha (Labour Dispute Appeal No. 35 of 2018)
  • Hilda Musinguzi v Stanbic Bank (Supreme Court Civil Appeal No. 5 of 2016)
  • Musakiriza v African Vending Systems Limited (Labour Dispute Reference No. 72 of 2018)
  • DFCU Bank v Donna Kamuli (Civil Appeal No. 121 of 2016)
  • Fang Min v Belex Tours and Travel Limited (Supreme Court Civil Appeal No. 6 of 2013)

Full judgment

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

Kabanza_v_Great_Lakes_Regional_University_(Labour_Dispute_Reference_No._31_of_2019)_[2021]_UGIC_20_(17_May_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.