Wakilii

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

Industrial Court · [2026] UGIC 24 · 2026 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference from labour officer following failed mediation after claimants' acquittal in criminal proceedings
Decision
Claimants' application granted; Respondent ordered to pay accrued salary, general damages, and severance allowance with interest.

Observed later treatment

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Holding

Held that where an employer elects to report criminal allegations against employees and await the criminal trial outcome rather than pursue internal disciplinary mechanisms, the employer is bound to abide by the acquittal. Failure to reinstate employees after acquittal without justification constitutes constructive dismissal under Employment Act s.64(1)(c). An employer's accusation of theft without justification breaches the duty of mutual trust and confidence foundational to the employment relationship. The court awarded back pay, general damages, and severance allowance.

Outcome

Claimants' application granted; Respondent ordered to pay accrued salary, general damages, and severance allowance with interest.

Facts

In March 2016, Vegol Limited contracted two claimants as electricians on a six-month contract. In January 2017, they became permanent employees. In November 2017, the respondent reported missing company property to police and implicated the claimants in theft. Both were arrested, arraigned before the Chief Magistrate's Court in Mukono, remanded to Kauga Prison, and later released on bail. They were prosecuted for three years and acquitted on 18 June 2021. During the pendency of the criminal case, the claimants were denied access to the respondent's premises without a hearing. After acquittal, they reported the matter to a labour officer who mediated and later referred it to the Industrial Court when mediation failed.

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 that the Respondent unlawfully and unfairly constructively dismissed the Claimants.
  • The Respondent to pay the 1st Claimant UGX 35,700,000 as accrued salary from November 2017 to 18 June 2021.
  • The Respondent to pay the 2nd Claimant UGX 37,800,000 as accrued salary from November 2017 to 18 June 2021.
  • The Respondent to pay the 1st Claimant UGX 12,000,000 as general damages.
  • The Respondent to pay the 2nd Claimant UGX 12,000,000 as general damages.
  • Claim for punitive damages denied.
  • The Respondent to pay the 1st Claimant UGX 2,975,000 as severance allowance.
  • The Respondent to pay the 2nd Claimant UGX 3,150,000 as severance allowance.
  • Interest at 15% per annum from the date of the award until payment in full.
  • No order as to costs.

Rules and key headnotes

Constructive Dismissal — Employer's Election to Await Criminal Trial Outcome
Where an employer elects to await the outcome of criminal proceedings against an employee rather than pursue internal disciplinary mechanisms, the employer is bound to abide by the outcome of those criminal proceedings and must reinstate the employee upon acquittal.
Constructive Dismissal — Unreasonable Conduct and Duty of Trust and Confidence
An employer's accusation of theft without justification, followed by criminal prosecution and subsequent failure to reinstate the employee after acquittal, constitutes unreasonable conduct that breaches the duty of mutual trust and confidence and amounts to constructive dismissal under Employment Act s.64(1)(c).
Managerial Prerogative — Choice Between Criminal and Disciplinary Proceedings
An employer has the managerial prerogative to choose between awaiting the outcome of criminal proceedings or pursuing internal disciplinary mechanisms, but the employment disciplinary mechanism remains an internal private process that cannot be subject to the criminal process, which is a public process.
Accrued Salary — Payment During Absence Attributable to Criminal Proceedings
Where an employer prevents employees from working by awaiting the outcome of criminal proceedings initiated by the employer, employees are entitled to accrued salary for the period during which they were prevented from working, as their absence was attributable to circumstances created by the employer.
Hearsay Evidence — Admissibility in Industrial Court Proceedings
Under Labour Disputes (Arbitration and Settlement) Act s.19, the Industrial Court is not bound by rules of evidence in civil proceedings and may admit hearsay evidence, including testimony from a Human Resources Officer based on company records, provided the court tests the veracity of such evidence before relying on it.
Limitation — Six-Year Period for Employment Claims
Where an employer elects to rely on criminal proceedings against employees and the labour officer exercises discretion to handle a dispute after conclusion of those proceedings, a claim filed within six years from the criminal acquittal is not time-barred under Limitation Act s.3(1)(d), notwithstanding that employment ceased several years earlier.
General Damages — Assessment for Constructive Dismissal
General damages in employment disputes compensate for non-pecuniary losses such as emotional distress, reputational harm, and diminished employability. The quantum is assessed considering the employee's status, manner of termination, salary earned, and prospects of alternative employment. An unfounded accusation of theft that leads to criminal prosecution followed by acquittal severely damages both the employment relationship and the employee's future employability.

Legislation cited (13)

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 [200]21ILI 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
  • Eva Nazziwa Lubowa v National 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)
  • [2025] UGIC 95
  • [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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Mukisa Godfrey and Another v Vegol Limited (Labour Dispute Reference No. 012 of 2022) [2026] UGIC 24 (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.