Wakilii

Obonyo v Merryland High School (Labour Dispute Reference No. 110 of 2017)

Industrial Court · [2021] UGIC 72 · 2021 Claim Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference heard ex parte after respondent failed to appear despite effective service
Decision
Claim partly allowed; respondent ordered to pay two months' salary with interest; all other claims dismissed

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that an employer may lawfully terminate an employee who remains sick beyond two months under Employment Act s.55, without further notice or payment in lieu, provided the employer paid full wages for the first two months of sickness absence. The claimant's termination after four months' absence due to accident-related incapacity was lawful, but the employer was liable for two months' salary not paid during the statutory sick pay period.

Outcome

Claim partly allowed; respondent ordered to pay two months' salary with interest; all other claims dismissed

Facts

The claimant was orally employed as an agriculture teacher in February 2001 at a monthly salary of UGX 800,000. In May 2015, during first term school holidays, he was involved in a motor accident which incapacitated him for four months. He notified the school's director of studies and head teacher about the accident. The school replaced him temporarily with another teacher and ceased paying his salary. He returned to work in September 2015 and resumed teaching. On 9 October 2015, he was informed his contract was terminated. He was not given a hearing before termination. The respondent claimed it was unaware of any accident and that the claimant had absconded from work. The matter proceeded ex parte after the respondent failed to appear despite effective service.

Issues

  1. Whether the Claimant was unlawfully terminated?
  2. What remedies are available to the parties?

Orders

  • Respondent to pay the Claimant 2 months' salary amounting to UGX 1,600,000/- in accordance with section 55(1) of the Employment Act.
  • Interest of 15% per annum from August 2015 until payment in full.
  • Claim for payment in lieu of notice dismissed.
  • Claim for NSSF remittances dismissed.
  • Claim for untaken leave dismissed.
  • Claim for general damages dismissed.
  • No order as to costs.

Rules and key headnotes

Termination — Sickness Absence — Statutory Sick Pay Period
Under Employment Act s.55(1), an employee incapable of work due to sickness is entitled to full wages and benefits for the first month of absence, and if sickness continues into the second month, the employer may terminate the contract at the expiry of the second month in accordance with the contract terms, without further notice or payment in lieu of notice.
Termination — Sickness Absence — No Requirement for Disciplinary Hearing
Where an employee is terminated under Employment Act s.55 due to prolonged absence exceeding two months caused by sickness, there is no requirement for the employer to conduct a disciplinary hearing before termination, because the reason for termination is inability to perform duties due to sickness, not poor conduct or poor performance under s.66.
Termination — Sickness Absence — Notice Periods Distinguished
Employment Act s.55 cannot be construed together with s.58 which provides for notice periods before termination; once an employee's sickness absence exceeds two months, the employer may terminate without further notice or payment in lieu, provided the employer paid full wages for the first two months, as it would be unfair to require further notice when the employee already received full pay without rendering services.
Annual Leave — Teachers — School Holidays
Employees in the teaching profession take leave every school holiday; a claim for untaken leave under Employment Act s.54 will only succeed if the employee demonstrates that leave was applied for and denied, or if the contract of service specifically states entitlement to leave outside school holidays.
NSSF Contributions — Burden of Proof
NSSF remittances are personal property which an employee has a right to claim, but the onus lies on the employee to prove that remittances were not made, including evidence of when the employee became eligible for NSSF and evidence showing non-remittance for the period claimed.

Legislation cited (9)

Cases cited (3)

  • Dr. Omona Kizito v Maries Stoppes Uganda (Labour Dispute Claim No. 033 of 2015)
  • Florence Mufumbo v Uganda Development Bank (Labour Dispute Claim No. 138 of 2014)
  • Kabuusu Henry v Uganda Revenue Authority (Labour Dispute Reference No. 149 of 2015)

Full judgment

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

Obonyo_v_Merryland_High_School_(Labour_Dispute_Reference_No._110_of_2017)_[2021]_UGIC_72_(25_October_2021)
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.