Wakilii

Kyabona v Modern Laminats Limited (Labour Dispute Reference 20 of 2023)

Industrial Court · [2023] UGIC 33 · 2023 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference arising from mediation failure at Njeru Labour Office
Decision
Claimant's labour dispute reference substantially allowed with monetary awards and certificate of service ordered

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Industrial Court held that the claimant was unlawfully terminated because the employer failed to comply with procedural and substantive requirements under sections 66 and 68 of the Employment Act. The employer did not prove that disciplinary notices were served, did not conduct a proper hearing, and failed to verify the alleged misconduct at the time it occurred. The claimant was awarded payment in lieu of notice, withheld salary, unremitted NSSF contributions, general damages, and severance allowance.

Outcome

Claimant's labour dispute reference substantially allowed with monetary awards and certificate of service ordered

Facts

The claimant was employed by the respondent company as a driver from February 2022 to July 2023, earning UGX 650,000 per month. On 10 July 2023, he reported to work but was denied vehicle keys. The following day, security guards prevented him from entering the premises on instructions from the Human Resources Manager, who informed him he was dismissed for allegedly delivering less products than assigned on an unspecified date. The respondent alleged the claimant stole or lost part of a consignment of wastepaper on 29 May 2023 weighing 611 KGM. The respondent claimed it issued disciplinary hearing notices on 3 July and 7 July 2023, which the claimant allegedly ignored. However, the claimant continued working until 10 July 2023. The alleged theft was only reported to police in August 2023, more than two months after the incident. The claimant was not paid for June 2023 and 10 days of July 2023, and the respondent made irregular NSSF contributions throughout his employment.

Issues

  1. Whether the Claimant was unfairly terminated from employment.
  2. Whether the Claimant is entitled to the relief sought.
  3. What remedies are available to the parties.

Orders

  • Declaration that the claimant was unlawfully and unfairly terminated from employment.
  • Respondent to pay UGX 650,000 as payment in lieu of notice.
  • Respondent to pay UGX 866,667 for withheld salary for June and 10 days of July 2023.
  • Respondent to remit UGX 359,180 to NSSF as unremitted contributions with 10% penalty.
  • Respondent to pay UGX 5,000,000 as general damages for unlawful dismissal.
  • Respondent to pay UGX 975,000 as severance allowance.
  • Respondent to issue the claimant a certificate of service.
  • Interest of 12% per annum on all pecuniary awards from date of award until payment in full.
  • Claim for compensation under sections 77 and 78 of the Employment Act denied.
  • Claim for untaken leave denied.
  • No order as to costs.

Rules and key headnotes

Unfair Dismissal — Procedural Requirements — Notice and Hearing
Before dismissing an employee, an employer must comply with sections 58, 65, 66, 68 and 70(6) of the Employment Act read together, which provide for both substantive and procedural fairness, and failure to follow these procedures renders the termination unlawful.
Dismissal — Section 66 Requirements — Explanation and Hearing
Section 66 of the Employment Act makes it mandatory for an employer to give an employee a reason before reaching a decision to terminate or dismiss and to provide an opportunity for the employee to respond to the reasons in writing or orally, accompanied by a person of his or her choice.
Dismissal — Burden of Proof — Service of Notices
The burden lies on the employer to prove that disciplinary notices were actually served on the employee, and where the Human Resources Manager cannot confirm receipt and fails to produce copies bearing the employee's acknowledgment, the court will not accept that proper notice was given.
Dismissal — Section 68 Requirements — Contemporaneous Verification
Section 68(2) of the Employment Act requires the employer to prove that the reason for dismissal exists at the time of dismissal, and a long delay between discovery of alleged misconduct and commencement of disciplinary action gives rise to an inference that the employment relationship has not been rendered intolerable to warrant disciplinary penalties.
NSSF Contributions — Employer's Obligation — Unequal Remittances
An employee's NSSF contributions are personal property which the employee has a right to claim, and where an employer has failed or refused to remit such contributions or has not remitted them in full, the employer is obligated to remit the shortfall to the fund with applicable penalties.
Severance Allowance — Calculation — Unlawful Dismissal
Where there is no agreed calculation of severance allowance between employer and employee, an employee who has been unlawfully dismissed is entitled to one month's salary for every year served.
Annual Leave — Burden of Proof — Application and Denial
For an employee to succeed in a claim for untaken leave, the employee must prove that he or she applied to take leave during a particular period and it was denied, as section 54(1)(a) of the Employment Act requires that the period when leave shall be taken must be agreed between the parties.

Legislation cited (26)

Cases cited (11)

  • Uganda Local Association v Kibira Vincent & 4 Others (Industrial Court LDA No. 26 of 2016)
  • Ebiju James vs UMEME Ltd
  • Hilda Musinguzi v Stanbic Bank (U) Ltd (Supreme Court Civil Appeal No. 5 of 2016)
  • Akeny Robert v Uganda Communications Commission (Labour Dispute Claim No. 023 of 2015)
  • Prof Gilbert Baliseka Bukenya v Attorney General (Constitutional Petition No. 30 of 2011)
  • Iga Bonny vs Southern Range
  • Aijukye Stanley v Barclays (U) Ltd (Labour Dispute Claim No. 243 of 2014)
  • Stanbic Bank v Kiyimba Mutale (Supreme Court Civil Appeal No. 2 of 2010)
  • African Field Epidemiology Network (AFNET) v Peter Waswa Kityaba (Court of Appeal No. 0124 of 2017)
  • Donna Kamuli v DFCU Bank (Labour Dispute Claim No. 002 of 2015)
  • Muyomba George v Pan African Carriers (U) Ltd (Labour Dispute Reference No. 052 of 2020)

Full judgment

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

Kyabona_v_Modern_Laminats_Limited_(Labour_Dispute_Reference_20_of_2023)_[2023]_UGIC_33_(14_December_2023)
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.