Wakilii

Kizza Eric v The Executive Committee of Masaka Elders SACCO & 7 Others. (Labour Dispute Claim 58 of 2016)

Industrial Court · [2016] UGIC 25 · 2016 Judgment for Claimant AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute claim arising from alleged unlawful dismissal from employment
Decision
Claimant's dismissal declared void; awarded general damages and salary arrears; reinstatement declined

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Industrial Court held that the dismissal of the claimant by an Executive Committee whose term had expired in March 2015 was void ab initio. The purported extension of the Committee's term by the Commissioner for Cooperatives Development was unlawful as it lacked statutory basis under the Cooperative Societies Act and contravened the Society's bye-laws limiting committee members to two consecutive two-year terms. The claimant was denied natural justice as he was not provided with the audit report or a clear statement of charges. The court awarded general damages of UGX 10,000,000 and salary arrears from the date of dismissal to judgment at 8% interest, but declined reinstatement due to breakdown of trust.

Outcome

Claimant's dismissal declared void; awarded general damages and salary arrears; reinstatement declined

Facts

The claimant was a founder member of Masaka Elders Cooperative Savings and Credit Society Ltd established in 2006. He worked as a volunteer until formally appointed Manager by the Executive Committee on a 5-year contract, renewed on 31 December 2010 for another 5 years expiring 31 December 2015. On 15 December 2015 he was placed on forced leave for one month, extended multiple times until 9 March 2016 to allow for investigations. He was invited to meetings on 14 and 17 March 2016 which he did not attend. On 18 March 2016 he was dismissed by the Executive Committee. The claimant alleged the Executive Committee members who dismissed him were holding office illegally as their term had expired in March 2015, having served two consecutive two-year terms from March 2011.

Issues

  1. Whether the 2nd to 8th respondents whose term as the Executive Committee had expired had authority to dismiss the claimant and therefore whether the dismissal was lawful?
  2. What remedies are available to the parties?

Orders

  • A declaration that the claimant's dismissal by this committee was void ab initio.
  • General damages of UGX 10,000,000 for the unlawful dismissal.
  • Payment of salary arrears from 18/03/2015 to the date of judgement at an interest rate of 8% till full and final payment.
  • No order as to costs.

Rules and key headnotes

Employment & Labour — Dismissal — Authority to Dismiss — Unlawful Extension of Committee Term
Where an Executive Committee of a cooperative society has served two consecutive two-year terms as prescribed by the Cooperative Societies Regulations 1992 and the society's bye-laws, any purported extension of their term by the Commissioner for Cooperatives Development without statutory authority is unlawful, and acts performed by such a committee including dismissal of an employee are void ab initio.
Statutory Interpretation — Cooperative Societies — Term Limits — Eligibility for Re-election
Regulation 24(3) of the Cooperative Societies Regulations 1992 read with society bye-laws limiting committee members to two consecutive two-year terms means that once a person has served two consecutive terms, they are not eligible for re-election until a period equal to the time already served has lapsed.
Employment & Labour — Natural Justice — Right to be Heard — Adequacy of Notice
Where disciplinary proceedings are hinged on an investigation report against an employee, such employee is entitled to receive the investigation report and a clear statement of the charges levied against them so as to be able to examine and respond to it; only then can it be said that such an employee had a fair hearing.
Employment & Labour — Remedies — Reinstatement — Breakdown of Trust
Where the trust and confidence which was the basis of the employment relationship between the claimant and the respondents has been fundamentally broken, reinstatement is not tenable and general damages should be awarded in the alternative.
Employment & Labour — Damages — Salary Arrears — Unlawful Dismissal
In cases of unlawful dismissal, a claimant is entitled to salary arrears from the date of termination to the date of judgment with interest at 8% until full and final payment.
Administrative Law — Conduct of Employer — Implied Recognition of Employment Status
Where an employer continues to exercise authority over an employee by placing them on forced leave, extending that leave, and inviting them to disciplinary meetings, the employer cannot later claim ignorance of the employee's employment status or assert that the employment relationship had ended.

Legislation cited (4)

Cases cited (5)

  • Christopher Kagimu v Uganda Electricity Distribution Co Ltd (Labour Dispute No. 007 of 2014)
  • Gulaballi Ushillani v Kampala Pharmaceuticals (Supreme Court Civil Appeal No. 6 of 1998)
  • Issa Baluku v SBI Holdings (U) Ltd (High Court Civil Suit No. 792 of 2005)
  • Florence Mufumbo v UDC (Labour Dispute Claim No. 138 of 2014)
  • ROOKES VS BARNARD

Full judgment

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

Kizza_Eric_v_The_Executive_Committee_of_Masaka_Elders_SACCO_&_7_Others._(Labour_Dispute_Claim_58_of_2016)_[2016]_UGIC_25_(21_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.