Wakilii

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

Industrial Court · [2025] UGIC 87 · 2025 Claim Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute claim arising from alleged constructive dismissal
Decision
Claimant's claim against 2nd Respondent allowed with awards for severance, general damages, and aggravated damages; claim against 1st Respondent dismissed

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 by the 2nd Respondent after being subjected to an indefinite suspension without reason, a botched disciplinary hearing, and coercion to resign. The court found that the claimant's fixed-term contract had been constructively renewed when the employer allowed her to continue working and paid her salary after expiry. The 2nd Respondent's conduct—suspending her for over two months without explanation, advertising her position during suspension, and giving her an ultimatum to resign or be dismissed—constituted a fundamental breach of contract. The 1st Respondent was not liable as it had no role in the claimant's employment under the collaboration.

Outcome

Claimant's claim against 2nd Respondent allowed with awards for severance, general damages, and aggravated damages; claim against 1st Respondent dismissed

Facts

The claimant was employed by the 2nd Respondent (an unincorporated collaboration between two universities) in various finance positions from 1993 to 2009, serving on one-year renewable contracts. Her last role was Administrator/Finance Manager. On 30 April 2009, she was verbally suspended indefinitely without reason by her supervisor, Professor Mugerwa. She remained suspended for over two months without explanation. During suspension, her position was split into two and advertised. On 13 July 2009, she was given reasons for suspension (poor performance and incompetence) and invited to a hearing. On 17 July 2009, after being told by Dr. Bloom that her termination was a foregone conclusion, she resigned. She was paid terminal benefits including four months' gratis pay. Her last performance appraisal (July-December 2008) rated her as outstanding. Her contract had expired on 31 December 2008 but she continued working and was paid salary thereafter.

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 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 award until payment in full.
  • Claim against the 1st Respondent dismissed with no order as to costs.
  • 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 allows the employee to continue working, assigns work, and pays salary, the contract is deemed to have been constructively renewed on the same terms and conditions by the employer's acquiescence.
Employer Definition — Unincorporated Associations — Labour Jurisprudence
An unincorporated association can be an employer within the meaning of the Employment Act where it exercises managerial prerogative over an employee, assigns work, pays remuneration, and has power to discipline, notwithstanding its lack of corporate personality. The doctrine of corporate separateness is not inviolable in labour jurisprudence.
Constructive Dismissal — Unreasonable Conduct — Indefinite Suspension
An indefinite suspension without reason, exceeding the statutory four-week period under section 62 of the Employment Act, constitutes unreasonable and intolerable conduct by an employer that may amount to constructive dismissal where it makes continued employment impossible for the employee.
Constructive Dismissal — Coerced Resignation — Ultimatum
Where an employee resigns after being given an ultimatum to resign or be dismissed, and the resignation is caused by the threat of termination rather than voluntary choice or negotiated terms, the resignation constitutes constructive dismissal. The test is whether the threat caused the resignation, not whether the employee was willing to accept offered terms.
Natural Justice — Disciplinary Proceedings — Right to Be Heard
For disciplinary proceedings 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. Failure to comply with these requirements renders the proceedings a violation of natural justice.
Remedies — Severance Allowance — Unlawful Dismissal
An employee who has been in employment for more than six months and is unlawfully dismissed is entitled to severance allowance. Where there is no agreed formula for calculating severance pay, the employee is entitled to one month's salary for every year worked.
General Damages — Unlawful Dismissal — Compensatory Nature
General damages for unlawful dismissal are compensatory in nature and are awarded to bring the aggrieved party to the position they were in before the injury. The court considers the pain and suffering caused by loss of employment, the manner of dismissal, length of service, and difficulty of securing alternative employment at the employee's age.

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 (South East) 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
  • Robert Taylor v Toyota Uganda Ltd (Labour Dispute Claim No. 033 of 2015)
  • Shefields v Oxford Controls Ltd [1979] ICR 397
  • 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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The original judgment as reported. Read the original PDF before relying on any passage.

Miriam_Kasujja_v_Makerere_University_and_Another_(Labour_Dispute_Claim_No._119_of_2014)_[2025]_UGIC_87_(6_November_2025)
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