Wakilii

Miriam Kasujja v Makerere University and Another (Labour Dispute Claim No. 119 of 2014)

Industrial Court · [2025] UGIC 81 · 2025 Claim Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute claim for constructive dismissal arising from alleged unlawful suspension and forced resignation
Decision
Claimant's claim for constructive dismissal allowed; awarded severance pay, general damages, and aggravated damages; claim against 1st Respondent dismissed

Observed later treatment

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Holding

The Industrial Court held that the claimant was constructively dismissed after being indefinitely suspended without reason for over two months, subjected to a flawed disciplinary process, and coerced into resigning. The court found that her fixed-term contract had been constructively renewed when the employer continued to pay her salary and assign work after expiry. The 2nd Respondent's conduct—including advertising her position during suspension and offering her an ultimatum to resign or be dismissed—constituted a fundamental breach of contract. The court awarded severance pay, general damages, and aggravated damages, but dismissed the claim against the 1st Respondent.

Outcome

Claimant's claim for constructive dismissal allowed; awarded severance pay, general damages, and aggravated damages; claim against 1st Respondent dismissed

Facts

The claimant worked for the 2nd Respondent (an unincorporated research collaboration) in various finance positions for 16 years, last serving as Finance and Administration Manager. On 30 April 2009, she was verbally suspended indefinitely without reason by her supervisor, Professor Mugerwa. She remained on suspension for over two months with no communication. During this period, her position was split into two roles and advertised. On 13 July 2009, she was belatedly informed of allegations of poor performance. After a flawed disciplinary hearing, she was given an ultimatum by Dr. Bloom to resign or be dismissed. She resigned on 17 July 2009. Her last performance appraisal (July-December 2008) had rated her as outstanding. Her fixed-term contract had expired on 31 December 2008, but the employer continued to pay her salary and assign work without formally renewing the contract.

Issues

  1. Whether the Claimant had an employment contract with the 2nd Respondent?
  2. Whether the collaboration Uganda-Case Western Reserve University Research collaboration is a body corporate that can be sued in its name?
  3. Whether the Claimant's suspension was valid or unlawful?
  4. Whether the resignation of the claimant was voluntary or a constructive dismissal from employment?
  5. Whether there was a breach of contract by the Respondents in the process of terminating the Claimant?
  6. What remedies are available in the circumstances of this case?

Orders

  • Declaration that the claimant was unlawfully and constructively dismissed.
  • Severance allowance of USD 60,672 (16 years at USD 3,792 per month).
  • General damages of USD 60,000.
  • Aggravated damages of USD 5,000.
  • Interest at 18% per annum on all pecuniary awards from the date of the award until payment in full.
  • Claim against the 1st Respondent dismissed with no order as to costs.
  • Claim for payment in lieu of notice denied (already paid).
  • Claim for punitive damages denied.
  • Claim for NSSF contributions to be pursued with the Fund under NSSF Act ss.12 and 44.
  • No order as to costs.

Rules and key headnotes

Employment Contracts — Fixed-Term Contracts — Constructive Renewal by Acquiescence
Where a fixed-term employment contract expires and is not expressly renewed, but the employer continues to assign work to the employee and pay salary, the contract is deemed to have been constructively renewed on the same terms and conditions by the employer's acquiescence, and the employer cannot later claim the contract had terminated by effluxion of time.
Employer Definition — Unincorporated Associations — Labour Jurisprudence
In labour jurisprudence, the doctrine of corporate separateness is not inviolable. An unincorporated association that exercises managerial prerogative over an employee—including recruiting, assigning work, paying salary, and exercising disciplinary power—is an employer within the meaning of the Employment Act and can sue and be sued in its name in labour disputes.
Constructive Dismissal — Unreasonable Conduct — Indefinite Suspension
An indefinite suspension without reason, exceeding the statutory maximum of four weeks under Employment Act s.62, constitutes illegal and unreasonable conduct by the employer. Where such suspension is followed by a flawed disciplinary process and an ultimatum to resign or be dismissed, the employee's resignation amounts to constructive dismissal.
Constructive Dismissal — Fundamental Breach — Advertising Vacant Position
Where an employer advertises an employee's position as vacant during the employee's suspension and before any disciplinary process is concluded, such conduct evinces an intention no longer to be bound by the employment contract and constitutes a fundamental breach justifying a finding of constructive dismissal.
Disciplinary Procedures — Natural Justice — Right to Be Heard
For a disciplinary hearing to comply with natural justice, the employee must be given: (1) notice of allegations with sufficient time to prepare a defence; (2) clear statement of allegations and rights at the hearing, including the right to respond orally or in writing, to be accompanied, and to cross-examine witnesses; and (3) an opportunity to appear before an impartial committee. A hearing that fails to meet these requirements is a sham and does not satisfy due process.
Remedies — Severance Pay — Calculation Formula
Where an employee is unlawfully dismissed and there is no agreed formula for calculating severance pay under the employment contract, the employee is entitled to one month's salary for every year worked, in accordance with Employment Act s.88.
General Damages — Unlawful Dismissal — Compensatory Nature
General damages for unlawful dismissal are compensatory in nature and are awarded to bring the aggrieved employee to the position they were in before the injury. The award must take into account the pain and suffering caused by the loss of employment, the manner of dismissal, the employee's length of service, and the difficulty of securing alternative employment.

Legislation cited (11)

Cases cited (29)

  • Nyakabwa J Abwooli v Security 2000 Ltd (Labour Dispute Claim No. 108 of 2014)
  • Lusiba Deogratious v National Water & Sewerage Corporation (Labour Dispute Reference No. 120 of 2016)
  • Mudoma Charles v Kenfreight (U) Ltd (Labour Dispute Claim No. 42 of 2015)
  • Sam Okao v Kampala Pharmaceutical Industries (1996) Limited (Labour Dispute Claim No. 49 of 2015)
  • David Potter v New Brunswick Legal Aid Service Commission [2015] 1 SCR
  • UMEME Ltd v Harriet Negesa (Labour Dispute Appeal No. 0072 of 2018)
  • Atiku v Gulu University (Labour Dispute Reference No. 130 of 2018)
  • Ready Mixed Concrete (Southeast) Ltd v Minister of Pensions and National Insurance [1968] 2 QB 497
  • Ongelle Alley Ronnie v Majjid Al Futtaim Hyper Markets (U) Ltd t/a Carrefour (Labour Dispute Miscellaneous Application No. 17 of 2025)
  • Godfrey Kyamukama v Makerere University Business School (Labour Dispute Reference No. 147 of 2019)
  • Daniel Mutisya Masei v Romy Madan & Another, ELRC Cause No. 691 of 2009
  • Achiro Beatrice Adong v Uganda Land Alliance (Labour Dispute Reference No. 179 of 2015)
  • Kandimaite v Centenary Bank (Labour Dispute Claim No. 23 of 2014)
  • Ugafode Microfinance Limited v Mark Kyoribona LDA No. 034
  • Eng Nsiimire Annet v UMEME Ltd (Labour Dispute Reference No. 184 of 2022)
  • Western Excavating (ECC) Ltd v Sharp [1978] ICR 222
  • Shefields v Oxford Controls Ltd [1979] ICR 397
  • Robert Taylor v Toyota Uganda Ltd (Labour Dispute Claim No. 033 of 2015)
  • Stanbic Bank Ltd v Hilda Musingizi (Supreme Court Civil Appeal No. 5 of 2016)
  • Ebiju v UMEME Ltd (High Court Civil Suit No. 133 of 2012)
  • Donna Kamuli v Dfcu Bank (Labour Dispute Claim No. 002 of 2015)
  • African Field Epidemiology Network (AFENET) v Waswa Kityaba (Labour Appeal No. 84 of 2017)
  • Mbiika Denis v Centenary Bank (Labour Dispute Claim No. 23 of 2014)
  • Stanbic Bank v Okou (Court of Appeal Civil Appeal No. 60 of 2020)
  • Dr. Wenceslaus Rama Makuza v CAA and AG (Labour Dispute Reference No. 41 of 2019)
  • Stanbic Bank v Kiyimba Mutale (Supreme Court Civil Appeal No. 2 of 2010)
  • Uganda Post Ltd v Mukadisi (Civil Appeal No. 13 of 2022)
  • Stanbic Bank Uganda Ltd v Asiimwe (Civil Appeal No. 18 of 2018)
  • Aijukye Stanley v Barclays Bank (U) Ltd (Labour Dispute Claim No. 243 of 2014)

Full judgment

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Miriam_Kasujja_v_Makerere_University_and_Another_(Labour_Dispute_Claim_No._119_of_2014)_[2025]_UGIC_81_(8_September_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.