Wakilii

Namakula v Scooby-Doo Daycare and Nursery School (Labour Dispute Reference 345 of 2019)

Industrial Court · [2022] UGIC 93 · 2022 Claim Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference arising from complaint at Wakiso District Labour Office, referred to Industrial Court for determination of unlawful termination claim
Decision
Claimant's employment declared unlawfully terminated; monetary awards granted for unpaid salary, notice, severance, and general damages; claims for future salary, NSSF contributions, and loan liability 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 unlawfully dismissed because the employer failed to afford her a hearing before termination, contrary to Employment Act s.66. The court awarded unpaid salary for 14 days worked in September 2018, one month's salary in lieu of notice, severance allowance, and general damages totalling UGX 28,911,666. The court declined to award speculative future salary, NSSF contributions without proof, or liability for the claimant's personal bank loan, holding that the employer's undertaking was limited to depositing terminal benefits into the nominated account.

Outcome

Claimant's employment declared unlawfully terminated; monetary awards granted for unpaid salary, notice, severance, and general damages; claims for future salary, NSSF contributions, and loan liability dismissed

Facts

The claimant was employed as head teacher by the respondent on 1 January 2017 on a three-year contract at a monthly salary of UGX 1,900,000. On 14 September 2018, the respondent terminated her employment by letter citing below-par delivery of services. The termination letter stated the dismissal was effective immediately. The claimant was not given a hearing before dismissal. The respondent alleged the claimant had been found braiding her hair during office hours, coupled with absenteeism and late-coming. The claimant had obtained a salary loan of UGX 17,000,000 from Stanbic Bank, for which the respondent had provided an undertaking to deposit her salary into the bank account to facilitate loan recovery. The respondent failed to attend the final hearing date despite being granted an adjournment.

Issues

  1. Whether the claimant's employment with the Respondent was legally terminated?
  2. Whether the claimant is entitled to terminal benefits?
  3. What remedies are available to the parties?

Orders

  • It is declared that the Claimant was unfairly dismissed from employment with the Respondent.
  • The Respondent is ordered to pay UGX 886,666 being unpaid salary up to 14th September 2018.
  • The Respondent is ordered to pay UGX 1,900,000 being one month's salary in lieu of notice.
  • The Respondent is ordered to pay UGX 3,325,000 as severance allowance.
  • The Respondent is ordered to pay UGX 22,800,000 in general damages.
  • The sums awarded shall attract interest at the rate of 15% per annum from the date of this Award until payment in full.
  • There is no order as to costs.

Rules and key headnotes

Unfair Dismissal — Right to a Hearing — Employment Act s.66
Before reaching a decision to dismiss an employee on grounds of misconduct or poor performance, an employer must explain to the employee in a language the employee may reasonably be expected to understand the reason for which the employer is considering dismissal, and must hear and consider any representation which the employee may make.
Unfair Dismissal — Procedural Fairness — Disciplinary Hearings
Appraisals and discussions held between employees and their employers touching on employee work performance do not add up to a disciplinary hearing and can only be evidence in support of good or poor performance at a disciplinary hearing. Whatever records the employer holds against an employee must be subjected to the rigours of a disciplinary process before a decision to terminate can be made.
Remedies — Unpaid Salary — Speculative Claims
An employee is entitled to unpaid salary only for the period actually worked. Any claim for salary beyond the period worked, including claims for salary for the remaining term of a fixed-term contract, is speculative and will not be granted.
Remedies — NSSF Contributions — Burden of Proof
Where a claimant does not adduce proof that NSSF contributions were deducted from salary and not remitted, a claim for NSSF benefits will be denied as speculative. Only the National Social Security Fund has the mandate to prosecute or file civil proceedings against an employer for recovery of unremitted contributions.
Salary Loans — Employer Liability — Contract of Guarantee
The determination of whether an employer should be liable for an employee's outstanding salary loan is a matter of construction of the loan documents. The employer's obligation must be defined in the underlying loan documents and must be clear and unambiguous. An undertaking to deposit salary into a nominated account and to deposit terminal benefits in the event of termination does not constitute a guarantee of the loan itself.
Remedies — General Damages — Assessment
In assessing general damages for unfair dismissal, the court applies the principle of restitutio in integrum analogously to loss of employment and future prospects of re-employment. The court considers the actual loss of earnings up to the date of the award as well as any prospective losses, taking into account the employee's monthly salary, age, length of service, position held, and prospects of re-employment.
Remedies — Aggravated Damages — Grounds
Aggravated damages are extra compensation for injury to feelings and dignity caused by the manner in which the defendant acted. They are awarded where the manner in which the employer committed the wrong, the employer's motives, or the employer's conduct subsequent to the wrong has upset or outraged the employee. Lack of compassion, callousness, and indifference to the good and devoted services of the employee may constitute aggravating circumstances.

Legislation cited (12)

Cases cited (24)

  • Birungi Grace v The Management Committee of Kampala Quality Primary School (Labour Dispute Reference No. 15 of 2019)
  • Ebiju James v Umeme (High Court Civil Suit No. 0133 of 2012)
  • Francis O. Ojera v Uganda Telecom Ltd (High Court Civil Suit No. 0161 of 2010)
  • Kabojja International School v Godfrey Oyesigye (Labour Dispute Appeal No. 003 of 2015)
  • Donna Kamuli v DFCU Bank Ltd (Labour Dispute No. 002 of 2015)
  • Queenvelle Atieno Owala v Centre For Corporate Governance (Industrial Court Of Kenya, Cause 81/2012)
  • African Field Epidemiology Network v Peter Waswa Kityaba (Court of Appeal Civil Appeal No. 124 of 2017)
  • Bank of Uganda v Betty Tinkamayire (Supreme Court Civil Appeal No. 12 of 2007)
  • Omunykol Akol Johnson v Attorney General (Supreme Court Civil Appeal No. 06 of 2012)
  • Irene Rebecca Nassuna v Equity Bank (U) Ltd (Labour Dispute Claim No. 06 of 2014)
  • Richard Kigozi v Equity Bank Uganda Limited (Labour Dispute Claim No. 115 of 2014)
  • Kapio Simon v Centenary Bank Ltd (Labour Dispute Claim No. 300 of 2015)
  • Olweny Moses v Equity Bank Ltd (Labour Dispute Claim No. 225 of 2019)
  • Otim Robert v Tirupati (Labour Dispute Reference No. 104 of 2017)
  • Lubega Moses v Holycross Orthodox Hospital (Labour Dispute Reference No. 118 of 2018)
  • Bugisu Robert vs Young Women's Christian Association in Uganda LDR 029/295
  • Stanley Aijukye v Barclays Bank (U) Ltd (Labour Dispute Claim No. 243 of 2014)
  • Uganda Development Bank v Florence Mufumba (Court of Appeal Civil Appeal No. 241 of 2015)
  • Stanbic Bank (U) Ltd v Constant R. Okou (Court of Appeal Civil Appeal No. 60 of 2020)
  • Assimwe Apollo & Ors v Law Development Centre (Labour Dispute No. 218 of 2014)
  • Akeny Robert v Uganda Communications Commission (Labour Dispute Claim No. 023 of 2015)
  • DFCU Bank Ltd v Donna Kamuli (Court of Appeal Civil Appeal No. 121 of 2016)
  • Rookes vs Banard [1964] A.C 1129
  • Joseph Kalule v GIZ (Labour Dispute Appeal No. 109 of 2020)

Full judgment

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Namakula_v_Scooby-Doo_Daycare_and_Nursery_School_(Labour_Dispute_Reference_345_of_2019)_[2022]_UGIC_93_(24_March_2022)
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.