Wakilii

Kharono v Action Aid International (Labour Dispute 196 of 2014)

Industrial Court · [2016] UGIC 19 · 2016 Claim Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute arising from High Court Civil Suit No. 387 of 2013, referred to Industrial Court
Decision
Claimant awarded general damages of UGX 65,000,000 with interest at 20% per annum from date of award

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that an employer's Human Resource Policy forms the basis of the employment contract and must be read together with the contract terms. Termination by notice under Employment Act s.65 requires the employer to provide reasons under s.68. Termination without reason and without following the HR Policy procedures constitutes unlawful and unfair termination. General damages of UGX 65,000,000 awarded.

Outcome

Claimant awarded general damages of UGX 65,000,000 with interest at 20% per annum from date of award

Facts

The claimant was employed by the respondent on 5 October 2011 under a contract providing for termination by one month's notice or payment in lieu. On 18 October 2013, the respondent terminated the claimant's employment by letter, offering payment in lieu of notice. The claimant had 23 months remaining on her contract. Prior to termination, she had been urged to resign but refused and requested reasons. She had never received disciplinary warnings. No reason was given for the termination. The respondent relied on clause 9 of the employment contract permitting termination on notice. The claimant contended that the respondent's Human Resource Policy required termination by employer to follow specific procedures for dismissal or redundancy, which were not followed.

Issues

  1. Whether the claimant's termination was wrongful and unfair.
  2. Whether the claimant is entitled to damages.

Orders

  • Award entered in favour of the claimant.
  • General damages of UGX 65,000,000 awarded.
  • Interest at 20% per annum from the date of the award.
  • Claim for aggravated damages dismissed.
  • Claim for compensation under Employment Act s.78(1) declined.

Rules and key headnotes

Employment & Labour — Termination of Employment — Relationship Between Contract Terms and Human Resource Policy
An employer's Human Resource Policy forms the basis of the employment contract and must be read together with the specific contract terms. A provision in the contract of service that is not in conformity with the Human Resource Policy has no basis and is of no legal effect.
Employment & Labour — Termination of Employment — Requirement to Provide Reasons
Under the Employment Act 2006, an employer who terminates an employee's contract must prove the reason for termination. Where the employer fails to provide reasons, the termination is deemed unfair within the meaning of section 71. This requirement applies whether the employer characterises the action as 'termination' or 'dismissal'.
Employment & Labour — Termination of Employment — Termination by Notice
Termination by notice or payment in lieu of notice under section 65 of the Employment Act is not an independent mode of termination but part of the termination process. It must be preceded by identification of a reason and mode of termination in accordance with the employer's Human Resource Policy and the Employment Act.
Statutory Interpretation — Employment Act — Definition of Dismissal and Termination
Under section 2 of the Employment Act 2006, 'dismissal from employment' arises when an employee has committed verifiable misconduct, while termination arises for justifiable reasons other than misconduct. In both cases, the employer must provide reasons for the decision.
Damages & Quantum — General Damages — Unlawful Termination of Employment
Where an employee is unlawfully and unfairly terminated with a substantial unexpired term remaining on the contract, general damages are the appropriate remedy rather than compensation for the full unexpired term or statutory compensation under section 78(1) of the Employment Act.

Legislation cited (7)

Cases cited (4)

  • Paul Micheal Bukenya v Global Trust Bank (Labour Claim Dispute No. 112 of 2014)
  • Florence Mufumba v Uganda Development Bank (Labour Dispute Claim No. 138 of 2014)
  • Omunyakol Akol Johnson v Attorney General (Civil Appeal No. 6 of 2012)
  • Bank of Uganda v Betty Tinkamanyire (Supreme Court Civil Appeal No. 12 of 2007)

Full judgment

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

Kharono_v_Action_Aid_International_(Labour_Dispute_196_of_2014)_[2016]_UGIC_19_(4_October_2016)
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.