Wakilii

Okech v West Acholi Cooperative Union (Labour Dispute Reference No. 123 of 2017)

Industrial Court · [2021] UGIC 74 · 2021 Application Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference arising from dismissal for misconduct
Decision
Claimant's dismissal upheld as substantively lawful; employer ordered to pay four weeks' wages for procedural impropriety and to remit NSSF contributions for ten months

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Industrial Court held that the dismissal of the claimant was substantively lawful under Employment Act s.69 because he fundamentally breached his obligations as Secretary Manager and Accounting Officer by failing to recover debts, misappropriating funds, and failing to account for monies received. However, the dismissal was procedurally unfair because the employer failed to comply with Employment Act s.66 by not giving the claimant an opportunity to respond to investigation findings before termination. The employer was ordered to pay four weeks' wages for procedural impropriety and to remit unremitted NSSF contributions.

Outcome

Claimant's dismissal upheld as substantively lawful; employer ordered to pay four weeks' wages for procedural impropriety and to remit NSSF contributions for ten months

Facts

The claimant was employed as Secretary Manager of the respondent cooperative union from 1998 to 2016. On 31 May 2016, he was interdicted on charges of causing financial loss, inefficiency, lack of qualifications, insubordination, and bringing the respondent into disrepute. He was dismissed on 28 October 2016. The claimant admitted he failed to recover UGX 77,385,900 from cotton agents, did not pay UGX 4,500,000 owed to Kweyo Cooperative Society for land ploughing, received UGX 12,000,000 in rent without providing receipts showing remittance, and traded with unregistered agents. He was 61 years old at dismissal, beyond the mandatory retirement age of 60. An investigation was conducted by the external auditor and Commissioner of Cooperatives from 29-30 August 2016, which the claimant attended. He was given two days to respond to the investigation but was not given an opportunity to respond to the investigation findings before termination.

Issues

  1. Whether the Claimant was wrongfully and unlawfully dismissed?
  2. What remedies are available to the parties?

Orders

  • The Claimant's termination was substantively lawful.
  • The Respondent is ordered to pay the Claimant 4 weeks pay for failure to follow the correct procedure for termination.
  • The Respondent is ordered to make the NSSF remittances to the Fund, for the months of January to October 2016.
  • Interest of 15% per annum shall accrue on orders 2 and 3, from the date of judgment until payment in full.
  • No order as to costs is made.

Rules and key headnotes

Employment & Labour — Dismissal — Fair Hearing — Distinction Between Investigation and Disciplinary Hearing
An employee's participation in an investigation into allegations of misconduct does not satisfy the requirement under Employment Act s.66 for a hearing before dismissal; the employer must give the employee an opportunity to respond to the findings of the investigation in a disciplinary hearing before reaching a decision to dismiss.
Employment & Labour — Dismissal — Procedural Fairness — Penalty for Non-Compliance with Section 66
Where an employer fails to comply with the procedural requirements of Employment Act s.66 before dismissal, the employer is liable to pay the employee four weeks' net pay, irrespective of whether the dismissal is substantively justified or whether it is a summary dismissal.
Employment & Labour — Summary Dismissal — Fundamental Breach of Contract
An employer is entitled to summarily dismiss an employee under Employment Act s.69 where the employee by his conduct has fundamentally broken his obligations under the contract of service, including where an accounting officer fails to recover debts, misappropriates funds, and fails to account for monies received.
Employment & Labour — Qualifications — Estoppel — Employer Cannot Challenge Qualifications After Years of Service
Where an employer recruits an employee after finding him qualified for a position, the employer cannot subsequently argue that the employee lacked the necessary qualifications, especially after the employee has rendered services for many years; it is the employer who sets the standard and qualifications for the job and once the parties have entered a contract of service, they are both bound by its terms.
Employment & Labour — NSSF Contributions — Employee's Right to Pursue Claim for Non-Remittance
An employee has a right to pursue a claim for non-remittance of NSSF contributions in the Industrial Court notwithstanding NSSF Act s.46, which provides that criminal or civil cases regarding non-remittance can only be brought by an inspector or officer of the Fund, because NSSF contributions are part of the employee's remuneration and the employee's property; where the employee succeeds, the court shall order the employer to make the remittance to the Fund.
Employment & Labour — Annual Leave — Burden of Proof — Employee Must Prove Application and Denial
A claim for untaken annual leave can only succeed where the employee proves that he applied for annual leave and it was denied; under Employment Act s.54, the dates on which annual leave is taken must be agreed between the employer and employee.

Legislation cited (7)

Cases cited (5)

  • Ebiju James v Umeme Limited (Civil Suit No. 0133 of 2012)
  • Sakwa Eric Joseph v Attorney General and Another (Miscellaneous Application No. 10 of 2020)
  • Oyaro John Owiny v Kitgum Municipal Council (Miscellaneous Cause No. 07 of 2018)
  • Kalengutsa v Bugoye Hydro Ltd (Labour Dispute Reference No. 138 of 2016)
  • Douglas Lukwago v Uganda Registration Services Bureau (Labour Dispute Claim No. 057 of 2016)

Full judgment

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

Okech_v_West_Acholi_Cooperative_Union_(Labour_Dispute_Reference_No._123_of_2017)_[2021]_UGIC_74_(23_March_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.