Wakilii

Mugoya v Board of Governors Nabumali High School (Labour Dispute Reference 5 of 2022)

Industrial Court · [2024] UGIC 8 · 2024 Claimant Succeeded — Termination Declared Unlawful AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference arising from complaint to Labour Officer Mbale, heard ex parte after respondent failed to appear
Decision
Claimant's termination declared unlawful. Respondent ordered to pay severance, general damages, repatriation allowance, and interest.

Observed later treatment

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Holding

Held that an employee confirmed in service under a letter specifying no contract duration, while subject to the Constitution and Public Service Standing Orders, is employed on permanent and not contractual terms. Where an employer dismisses an employee without notifying the reason and without affording an opportunity to be heard, the dismissal is unlawful under section 66 of the Employment Act 2006. An employee unlawfully terminated after 13 years of service is entitled to severance pay calculated at one month's salary per year served, general damages, and repatriation allowance.

Outcome

Claimant's termination declared unlawful. Respondent ordered to pay severance, general damages, repatriation allowance, and interest.

Facts

The claimant Rosset Mugoya was employed by Nabumali High School as a storekeeper on 20 August 2007 on probation for two years at a starting salary of UGX 290,000 under salary scale U6. Her appointment letter stated that her employment was subject to the Constitution of Uganda, the Public Service Act and Regulations, the Public Service Standing Orders, and administrative instructions. On 22 May 2015, she was confirmed in service at a salary of UGX 300,000 per month. Her confirmation letter specified her duties and salary but did not state the duration of her employment. On 25 November 2019, the respondent issued an internal advertisement directing all staff on contract to re-apply for renewal of their contracts for 2020. The claimant did not respond, believing she was on permanent terms. On 13 December 2019, the Head Teacher terminated her services effective 31 December 2019 for failing to respond to the advert. The claimant appealed on 6 January 2020 but received no response. She lodged a complaint with the Labour Officer Mbale on 9 March 2020, which was referred to the Industrial Court. The matter proceeded ex parte after the respondent failed to appear despite proper service.

Issues

  1. Whether the claimant's terms of employment were permanent or contractual.
  2. Whether the claimant was lawfully dismissed by the respondent.
  3. What remedies are available to the claimant.

Orders

  • It is declared that the claimant was unlawfully terminated.
  • The respondent is ordered to pay severance of UGX 3,900,000.
  • The respondent is ordered to pay general damages of UGX 7,000,000.
  • The respondent is ordered to pay repatriation of UGX 600,000.
  • Interest of 10% per annum on the awards in orders 2, 3, and 4 from the date of this award until payment in full.
  • No order as to costs.

Rules and key headnotes

Contract of Employment — Permanent vs Contractual Terms — Confirmation Letter Without Duration
Where an employer confirms an employee in service and the confirmation letter specifies duties and salary but does not state the duration of the employment, and the initial appointment was subject to the Constitution, Public Service Act, and Public Service Standing Orders, the confirmation is on permanent and not contractual terms. A contract of employment with no fixed date of expiry is indefinite and may be referred to as a permanent, indefinite, or continuing contract.
Termination — Ambiguity in Contract — Interpretation in Favour of Employee
Any ambiguities arising from the preparation or drafting of correspondence regarding the terms of employment must be resolved in favour of the employee, particularly where the contract was prepared by the employer.
Termination — Procedural Fairness — Notice and Hearing Under Section 66 Employment Act
Before dismissing an employee on allegations of committing any infractions or for any reason, the employer must notify the employee of the reason and give the employee an opportunity to defend themselves in accordance with section 66 of the Employment Act 2006. Where an employer fails to give such notice and opportunity, the dismissal is unlawful.
Termination — Burden of Proof — Section 68 Employment Act
In any claim arising out of termination, the employer must prove the reason or reasons for dismissal under section 68(1) of the Employment Act 2006. Where the employer fails to do so, the dismissal is deemed unfair within the meaning of section 71 of the Act. The reasons for dismissal must be matters which the employer at the time of dismissal genuinely believed to exist and which should have caused the employer to dismiss the employee.
Remedies — Severance Pay — Unlawful Termination
An employee who has been in continuous service for a period of 6 months or more and is found to be unlawfully terminated is entitled to severance pay under the Employment Act 2006, calculated at one month's salary for every year served.
Remedies — General Damages — Unlawful Termination
An employee who is unlawfully terminated is entitled to an award of general damages at the discretion of the court. General damages are compensatory in nature and are intended to return the aggrieved party to as near as possible in monetary terms to the position the party would have been in if the wrong had not been occasioned. The court may consider the employee's duty to mitigate loss by seeking alternative employment.
Remedies — Repatriation Allowance — Section 39(3) Employment Act
Under section 39(3) of the Employment Act 2006, where an employee has been in employment for at least ten years, the employee is entitled to repatriation at the expense of the employer irrespective of the employee's place of recruitment. The quantum of repatriation is at the court's discretion based on the circumstances.

Legislation cited (13)

Cases cited (7)

  • Transparency International Kenya v Teresa Carlo Omondi (CA No. 81 of 2018)
  • Diana Carey Namubiru v United Bank of Africa (LDR No. 10g of 2014)
  • Akonye David v Libya Oil (LDC No. 82 of 2014)
  • Angela Birungi v NLS Waste Services (LDR No. 671 of 2014)
  • Donna Kamuli v DFCU Bank (LDR No. 2 of 2015)
  • Bwengye Herbert v Eco Bank (U) Ltd (LDR No. 132 of 2015)
  • Akeny Robert v Uganda Communications Commission (LDC No. 23 of 2015)

Full judgment

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

Mugoya_v_Board_of_Governors_Nabumali_High_School_(Labour_Dispute_Reference_5_of_2022)_[2024]_UGIC_8_(27_June_2024)
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.