Wakilii

Norah Nabuuma v C.B.S LTD (Labour Dispute Claim 68 of 2014)

Industrial Court · [2019] UGIC 220 · 2019 Claim Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute claim arising from alleged unlawful dismissal
Decision
Claimant awarded UGX 900,000 for procedural breach; claim otherwise dismissed

Observed later treatment

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Holding

Held that termination by restructuring was lawful where restructuring actually occurred, but the employer breached procedural fairness by failing to notify the employee in advance as required under section 81 of the Employment Act 2006. General damages of UGX 900,000 awarded for procedural breach. Claim otherwise dismissed.

Outcome

Claimant awarded UGX 900,000 for procedural breach; claim otherwise dismissed

Facts

The claimant was employed by the respondent on 10 May 2005 as an announcement reader and later elevated to announcement assessor. She was paid UGX 900,000 per month. On 20 August 2013 she was summarily dismissed citing a restructuring exercise. The termination letter stated that management had found it inevitable to downsize its staff base due to ongoing restructuring. The claimant alleged she was singled out for termination because she made announcements about her clan meetings at Bulange Mengo without authorisation, which she contended was part of promoting Buganda culture. The respondent's witness testified that she was dismissed for persistent misconduct in broadcasting unauthorised announcements and that she had been suspended and asked to apologise. The matter was partially settled by consent on 16 November 2017, with the respondent paying accumulated leave, two months' pay in lieu of notice, severance allowance, and provident contributions. The residue issues concerned entitlement to payment during a period when the radio station was closed and entitlement to damages.

Issues

  1. Whether the claimant was entitled to any payment during the period the radio station was closed by the regulatory authority.
  2. Whether the claimant was entitled to damages for termination of employment.
  3. Whether the respondent's restructuring exercise constituted lawful grounds for termination.
  4. Whether the respondent complied with the procedural requirements under section 81 of the Employment Act 2006.

Orders

  • Claim substantially fails.
  • General damages of UGX 900,000 awarded to the claimant for the respondent's failure to notify the claimant before undertaking the restructuring of her department.
  • No order as to costs.

Rules and key headnotes

Employment & Labour — Termination — Redundancy and Restructuring — Procedural Requirements under Section 81 of the Employment Act 2006
Where an employer terminates employment through redundancy or restructuring, the termination must be procedurally fair and substantially justifiable and must follow the law as provided under section 81 of the Employment Act 2006, which requires notification of affected employees at least four weeks before termination and notification of the Commissioner of Labour in writing.
Employment & Labour — Termination — Redundancy and Restructuring — Phased Restructuring Does Not Exempt Compliance with Section 81
An employer cannot avoid the procedural requirements of section 81 of the Employment Act 2006 by conducting restructuring in a phased manner affecting fewer than ten employees at a time. The employer must notify the staff in the department being considered for restructuring about the reasons for the restructuring and when it is scheduled to take place, and employees should be involved and informed about the process before it takes place.
Employment & Labour — Termination — Lawful Termination with Procedural Breach — Entitlement to Damages
Where termination by restructuring is substantively lawful because restructuring actually occurred and there was a reduction in staff, but the employer failed to follow proper procedure by not informing the employee about the restructuring in advance, the termination is not unlawful but the employee is entitled to general damages for the procedural breach.

Legislation cited (4)

Cases cited (8)

  • David Kalyango v Rakai Health Sciences Programme (Labour Dispute Claim No. 38 of 2016)
  • Omoding Simon v Rakai Health Sciences Program Department (Labour Dispute Claim No. 39 of 2016)
  • Bank of Uganda v Betty Tinkamanyire (Supreme Court Civil Appeal No. 12 of 2007)
  • Barclays Bank v Godfrey Mubiru (Supreme Court Civil Appeal No. 1 of 1998)
  • Eng. Pascal Gakyaro v Civil Aviation (Court of Appeal Civil Appeal No. 60 of 2006)
  • Gumisirza Caroline Kalisa v Hima Cement Ltd (High Court Civil Suit No. 84 of 2012)
  • LIVINGSTONE V RAWYARDS COAL CO. LTD(1880) 5 APP CAS 25 AT 39
  • PREHN V ROYAL BANK OF LIVERPOOL (1870) LR.5 EX.92 AT 99-100

Full judgment

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

Norah_Nabuuma_v_C.B.S_LTD_(Labour_Dispute_Claim_68_of_2014)_[2019]_UGIC_220_(29_May_2019)
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.