Wakilii

Mukisa Godfrey and Another v Vegol Limited (Labour Dispute Reference No. 012 of 2022)

Industrial Court · [2026] UGIC 23 · 2026 Claim Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference arising from failed mediation before a labour officer concerning alleged constructive dismissal
Decision
Claimants' constructive dismissal claim allowed; respondent ordered to pay salary arrears, general damages, severance pay, and interest

Observed later treatment

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Holding

Held that the claimants were constructively dismissed under Employment Act s.64(1)(c) when the respondent, having elected to await the outcome of criminal proceedings against them, failed to reinstate them after their acquittal, demonstrating no intention to continue the employment relationship. The false allegation of theft without justification constituted unreasonable conduct that breached the duty of trust and confidence. The claim was not time-barred as the labour officer exercised discretion to handle it after the criminal proceedings concluded. Claimants awarded salary for 3.5 years, general damages, and severance allowance.

Outcome

Claimants' constructive dismissal claim allowed; respondent ordered to pay salary arrears, general damages, severance pay, and interest

Facts

In March 2016, the respondent company contracted the claimants as electricians on a six-month contract. They were engaged as permanent employees from January 2017 earning UGX 850,000 (1st claimant) and UGX 900,000 (2nd claimant) monthly. In November 2017, the respondent reported theft of company property worth UGX 2,700,000 and implicated the claimants. They were arrested, charged with theft, remanded to Kauga Prison, and later released on bail. The criminal case proceeded for three and a half years until 18 June 2021, when they were acquitted by Chief Magistrate Juliet Hatanga. Upon attempting to return to work after acquittal, they were denied entry to the respondent's premises without explanation or hearing. They filed a complaint with the labour officer in 2021, which was referred to court after mediation failed. The respondent claimed the claimants absconded from duty and terminated their own contracts, but produced no evidence of notices or disciplinary proceedings during the criminal trial period.

Issues

  1. Whether the claimants were unlawfully terminated by the respondent, and if so, whether the termination was wrongful?
  2. What remedies are available?

Orders

  • Declaration granted that the respondent unlawfully and unfairly constructively dismissed the claimants.
  • Respondent to pay 1st claimant UGX 35,700,000 as salary for the period November 2017 to 18 June 2021.
  • Respondent to pay 2nd claimant UGX 37,800,000 as salary for the period November 2017 to 18 June 2021.
  • Respondent to pay each claimant UGX 12,000,000 as general damages.
  • Punitive damages denied.
  • Respondent to pay 1st claimant UGX 2,975,000 as severance pay.
  • Respondent to pay 2nd claimant UGX 3,150,000 as severance pay.
  • Interest awarded at 15% per annum from date of award until payment in full.
  • No order as to costs.

Rules and key headnotes

Constructive Dismissal — Employer's Election to Await Criminal Proceedings — Duty to Reinstate After Acquittal
Where an employer elects to report a criminal complaint against an employee and waits for the conclusion of criminal proceedings rather than pursuing internal disciplinary mechanisms, the employer is bound to abide by the outcome of those proceedings and reinstate the employee upon acquittal; failure to do so demonstrates no intention to continue the employment relationship and constitutes constructive dismissal under Employment Act s.64(1)(c).
Constructive Dismissal — Unreasonable Conduct — False Allegations
An allegation of theft without justification that leads to criminal prosecution and acquittal constitutes unreasonable conduct breaching the employer's duty of trust and confidence; such conduct, coupled with refusal to reinstate the employee after acquittal, amounts to constructive dismissal as it goes to the root of the employment contract and severely damages the employee's reputation and employability.
Employer's Prerogative — Choice Between Criminal Proceedings and Internal Discipline
An employer has the managerial prerogative to determine disciplinary mechanisms and is not bound to wait for the outcome of criminal proceedings before pursuing internal disciplinary action; however, where the employer chooses to await the criminal trial outcome, it must abide by that outcome to avoid the possibility of two adverse outcomes against the employee.
Admissibility — Hearsay Evidence in Labour Disputes — Human Resources Officer Testimony
Under Labour Disputes (Arbitration and Settlement) Act s.19, the Industrial Court is not bound by the rules of evidence in civil proceedings and may admit hearsay evidence; testimony by a Human Resources Officer based on company records and information systems is admissible as the HR function is central to employee relations and serves as custodian of employment matters, though the court must test the veracity of such evidence before relying on it.
Limitation — Labour Disputes — Calculation from Cause of Action
Where a labour officer exercises discretion to handle a dispute after criminal proceedings against an employee conclude, and refers the matter to court only after mediation fails, the limitation period of six years under Limitation Act s.3(1) runs from the conclusion of the criminal proceedings where the employer had elected to await that outcome, and the claim is not time-barred.
Remedies — Salary During Criminal Proceedings — Absence Attributable to Exceptional Events
An employee prevented from working during criminal proceedings instigated by the employer without justification is entitled to salary for the period of absence under Employment Act s.40(6) as absence attributable to exceptional events preventing the employee from working, where the employer took no steps to reinstate the employee during or after the proceedings.
General Damages — Employment Disputes — Reputational Harm and Employability
General damages in employment disputes are awarded for non-pecuniary losses including emotional distress, reputational harm, and diminished employability; quantum is assessed considering the employee's status, manner of termination, salary earned, and prospects of alternative employment; false allegations of theft severely damaging reputation and employability justify a substantial award.

Legislation cited (10)

Cases cited (23)

  • Mbiika v Centenary Bank (Labour Dispute Reference No. 23 of 2014)
  • Nyakabwa Abwoli v Security Limited (Labour Dispute Case No. 108 of 2014)
  • Hafunjo George v Entebbe Handling Services (Labour Dispute Case No. 25 of 2017)
  • Baliruno v Central Broadcasting Services (Labour Dispute Reference No. 92 of 2020)
  • Lubega Moses and 5 Others v Roofings (U) Ltd (Labour Dispute Reference No. 166 of 2020)
  • Moro Charles v Greenhill Secondary School (Labour Dispute Reference No. 10 of 2021)
  • Southern Sun Hotel (Pty) Ltd v SA Commercial Catering & Allied workers Union and Another [2001] 21 ILI 1315 (LAC)
  • Airtel Uganda Ltd v Ndagire Hawa Kajjumba (Labour Dispute Appeal No. 002 of 2021)
  • Mukisa Biscuits v Western Distributors (1969) EA 696
  • Miyingo Abdulhakim v Sogea Satom Uganda (Labour Dispute Reference No. 116 of 2018)
  • Robert Mukembo v Ecolab East Africa (U) Ltd (High Court Civil Suit No. 54 of 2007)
  • Timothy Mugabi v Taga Buoifsen and 2 Others (High Court Civil Suit No. 408 of 2014)
  • Rugumayo v Uganda Revenue Authority (Labour Dispute No. 42 of 2014)
  • Kyambadde Vincent v Sembabule Town and Another (Labour Dispute Reference No. 40 of 2016)
  • David Kemei v Energy Regulatory Commission, Industrial cause no. 1492 of 2011 [2011] LLR 204 (ICK)
  • Western Excavating (ECC) Ltd v Sharp [1978] IRLR 27, CA
  • Eva Nazziwa Lubowa v Nation Social Security Fund (Labour Dispute Reference No. 001 of 2013)
  • Stanbic Bank (U) Ltd v Kiyimba Mutale (Supreme Court Civil Appeal No. 2 of 2010)
  • Stanbic Bank (U) Ltd v Constant Okuo (Court of Appeal No. 80 of 2020)
  • Standard Chartered Bank v Makoko [2025] UGIC 95
  • Post Bank Limited v Mukadisi SCCA [2023] UGSC 58
  • Donna Kamuli v DFCU Bank (Labour Dispute Case No. 002 of 2015)
  • African Field Epidemiology Network (AFENET) v Kityaba (Civil Appeal No. 124 of 2017)

Full judgment

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

Mukisa Godfrey and Another v Vegol Limited (Labour Dispute Reference No. 012 of 2022) [2026] UGIC 23 (2 April 2026)
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.