Wakilii

Kanye... (consolidated Labor Dispute Reference 18 of 2017; consolidated Labor Dispute Reference 19 of 2017; consolidated Labor Dispute Reference 21 of 2017; consolidated Labor Dispute Reference 24 of 2017; consol...) 2022 UGIC 94 (2022-05-2

Industrial Court · [2022] UGIC 94 Claims Dismissed (Nominal Damages Awarded) AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Consolidated labour dispute references challenging termination of employment
Decision
Claims dismissed with nominal damages of UGX 1,000,000 awarded to each claimant for procedural irregularity in signing of termination letters

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the claimants' terminations were substantively and procedurally lawful. The claimants admitted to breaching the employer's Code of Business Principles by deviating from the Demand Based Replenishment system without authorization, resulting in inaccurate recording of transactions. The disciplinary committee was properly constituted and the hearing complied with natural justice principles. However, the termination letters were signed by unauthorized persons, warranting nominal damages of UGX 1,000,000 each. Claims dismissed save for nominal damages.

Outcome

Claims dismissed with nominal damages of UGX 1,000,000 awarded to each claimant for procedural irregularity in signing of termination letters

Facts

Five former employees of Unilever Uganda Limited, holding senior positions with service ranging from 7 to 22 years, were terminated between July and August 2016. They were subjected to interviews by the Security Director Africa, issued notices to show cause, and appeared before a disciplinary hearing one day after submitting written explanations. The second and fifth claimants were initially summarily dismissed in July 2016, later converted to termination. The first, third and fourth claimants were dismissed in August 2016. All were accused of violating the company's Code of Business Principles by deviating from the Demand Based Replenishment system, including placing orders without consulting Key Distributors, generating invoices outside the proper process, and failing to reverse invoices for rejected stock. The claimants admitted to these infractions but claimed they were adapting the system to Uganda's business environment.

Issues

  1. Whether any of the Claimants were lawfully dismissed and or terminated from employment?
  2. Whether the conversion of summary dismissal to termination was valid or lawful?
  3. Whether the Claimants are entitled to the remedies sought?

Orders

  • Claims dismissed.
  • Each claimant awarded nominal damages of UGX 1,000,000 for termination letters being signed by unauthorized parties.
  • No order as to costs.

Rules and key headnotes

Employment & Labour — Termination of Employment — Burden of Proof — Standard of Proof
An employer contemplating dismissal or termination must prove the reasons for dismissal or termination on a balance of probabilities, and the reasons must be matters which the employer, at the time of dismissal or termination, genuinely believes exist.
Employment & Labour — Disciplinary Proceedings — Admissions — Right to Hearing
Where an employee admits to committing the infractions leveled against them, it is not a requirement for the employer to give a hearing to the employee, though providing one exceeds the minimum procedural requirements.
Employment & Labour — Disciplinary Committee — Composition — Foreign Nationals
An employer may constitute a disciplinary committee comprising non-Ugandan nationals and persons who are not employees of the organization, provided the committee exercises its role within the ambit of national employment laws and the employee is not prejudiced by such composition.
Employment & Labour — Termination — Authority to Terminate — Unauthorized Signatories
Termination or dismissal must be effected by the employer who executed the contract of employment with the employee. Where termination letters are signed by persons who did not execute the employment contract and there is no evidence of authorization, the employee is entitled to nominal damages for this breach, though the termination itself is not nullified.
Employment & Labour — Code of Conduct — Breach — Senior Employees — Aggravating Factors
Long service and seniority of employees who breach an employer's code of conduct should be treated as an aggravating factor rather than a mitigating factor, as senior employees are expected to know all codes, policies and principles and to lead by example in compliance.
Employment & Labour — Disciplinary Proceedings — Standard of Proof — Reasonable Belief
A disciplinary committee is not a court of law and is not required to apply the same standards as a court. The employer is only required to prove that it was reasonable in the circumstances to believe that the employee had done wrong in the context of performing their duties.

Legislation cited (12)

Cases cited (12)

  • Barclays Bank v Godfrey Mubiru (Supreme Court Civil Appeal No. 1 of 1998)
  • Stanbic Bank Ltd v Kiyimba Mutale (Supreme Court Civil Appeal No. 2 of 2010)
  • Mufumba Florence v UDB (Labour Dispute Reference No. 138 of 2014)
  • Habre International Co. Ltd v Ebrahim Azakaria Kassam and Others (Supreme Court Civil Appeal No. 4 of 1999)
  • Interfreight Forwarders (U) Limited v East African Development Bank (Supreme Court Civil Appeal No. 33 of 1992)
  • Pepper (inspector of taxes) vs Hart and related Appeals [1993] 1 All ER 42
  • Bwengye Herbert v Ecobank (U) Limited (Labour Dispute Reference No. 132 of 2015)
  • Akeny Robert v Uganda Communications Commission (Labour Dispute Reference No. 023 of 2015)
  • Hilda Musinguzi v Stanbic Bank (Supreme Court Civil Appeal No. 05 of 2016)
  • Kabojja International v Godfrey Oyesigire (Labour Dispute Appeal No. 3 of 2015)
  • Mwami v MTN (Uganda) Ltd (High Court Civil Suit No. 177 of 2012)
  • August Laaple (South Africa) vs David Jarret Cas No. Jr 1651 /01

Full judgment

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

Kanye... (consolidated Labor Dispute Reference 18 of 2017; consolidated Labor Dispute Reference 19 of 2017; consolidated Labor Dispute Reference 21 of 2017; consolidated Labor Dispute Reference 24 of 2017; consol...) 2022 UGIC 94 (2022-05-2
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.