Wakilii

Mary Muhumuza Banyenzaki v Entebbe Handling Services Limited t a National Aviation Services Limited (Labour Dispute Reference No. 269 of 2022)

Industrial Court · [2025] UGIC 60 · 2025 Constructive Dismissal Declared AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference arising from failed mediation before Wakiso District Labour Officer
Decision
Claimant declared constructively dismissed and awarded monetary compensation

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 constructively dismissed after the employer held her in an acting position for 27 months without confirmation, failed to communicate transparently about her status, subjected her to an interview for a substantive position while simultaneously abolishing her former substantive position, and failed to pay acting allowances as required by the Collective Bargaining Agreement. The court awarded unpaid acting allowances, severance pay, general damages, interest, and costs.

Outcome

Claimant declared constructively dismissed and awarded monetary compensation

Facts

The claimant was employed by the respondent as a Duty Manager in March 2012 and promoted to Deputy Passenger Services Manager in September 2016. In September 2020, following the departure of the Passenger Services Manager, she assumed the role of Acting Passenger Services Manager. Despite repeated inquiries over one year, the employer did not confirm her appointment or clarify her status. In January 2022, after 16 months in acting capacity, she was interviewed for the substantive position but found unsuitable. The employer then informed her that her former position of Assistant Passenger Services Manager had been abolished and proposed she await appointment as UN Station Manager. She was not paid acting allowances as required by the Collective Bargaining Agreement. She resigned in July 2022, citing an unconducive work environment, unprofessional atmosphere, and failure to provide proper remuneration.

Issues

  1. Whether the Claimant has a cause of action?
  2. Whether the Respondent's actions amounted to constructive dismissal?
  3. What remedies are available to the parties?

Orders

  • Declaration that the Claimant was constructively dismissed.
  • Respondent to pay UGX 3,668,672 as unpaid acting allowances.
  • Respondent to pay UGX 22,299,200 in severance pay.
  • Respondent to pay UGX 20,000,000 in general damages.
  • Claimant awarded costs of the claim.
  • Interest at 18% per annum on acting allowances from 25 February 2022 until payment in full.
  • Interest at 13% per annum on severance pay and general damages from date of award until payment in full.

Rules and key headnotes

Constructive Dismissal — Prolonged Acting Appointment Without Confirmation
Where a Collective Bargaining Agreement provides that no appointment to act in a substantively vacant post shall exceed six months and requires either confirmation or reversion to the former position, holding an employee in acting capacity for 27 months without confirmation constitutes a breach of the employment contract and amounts to unreasonable conduct supporting a finding of constructive dismissal.
Constructive Dismissal — Failure to Communicate
An employer's failure to respond to an employee's repeated inquiries about their employment status over an extended period constitutes unreasonable conduct and an unfair labour practice, as employees have a right to know their status and employers must communicate openly, transparently, and in a timely manner.
Constructive Dismissal — Unilateral Abolition of Office
Where an employer interviews an employee for a substantive position, finds them unsuitable, and then advises that their former position has been abolished without evidence of when or how the abolition occurred, such conduct is unreasonable and unfair, constituting a significant breach going to the root of the employment contract.
Collective Bargaining Agreements — Incorporation into Employment Contract
Terms of a Collective Bargaining Agreement are incorporated into individual employment contracts under Sections 39(1) and 40 of the Labour Disputes (Arbitration and Settlement) Act and give rise to legally enforceable rights, including the right to acting allowances and timely confirmation.
Acting Allowances — Entitlement and Calculation
An employee serving in an acting capacity is entitled to an acting allowance as stipulated in the applicable Collective Bargaining Agreement, and failure to pay such allowances constitutes a breach of contract and may support a finding of constructive dismissal.
General Damages in Employment Disputes — Assessment Factors
In assessing general damages for constructive dismissal, the court considers the employee's prospects of securing alternative employment, the manner of termination, the employee's earnings, age, position of responsibility, duration of service, and the economic inconvenience and emotional distress suffered.
Costs in Employment Disputes — Exception to General Rule
While costs in employment disputes do not ordinarily follow the event, costs may be awarded where the losing party has committed misconduct, including contriving circumstances leading to constructive dismissal and failing to participate in proceedings after initially appearing.

Legislation cited (6)

Cases cited (28)

Full judgment

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Mary_Muhumuza_Banyenzaki_v_Entebbe_Handling_Services_Limited_t_a_National_Aviation_Services_Limited_(Labour_Dispute_Reference_No._269_of_2022)_[2025]_UGIC_60_(18_August_2025)
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.