Wakilii

Olango v Hands of Love SSS Kabaga (Labour Dispute Reference 216 of 2021)

Industrial Court · [2023] UGIC 71 · 2023 Claim Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference from Wakiso District Labour Office following failure to resolve complaint of unpaid wages
Decision
Claimant's claim allowed; Respondent ordered to pay total monetary award of UGX 20,064,000 plus interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Industrial Court held that an employer's failure to pay an employee's salary for eight months without justification constitutes a serious breach of contract amounting to constructive dismissal under Employment Act s.65(1)(c). The court awarded unpaid wages, refund of illegal deductions (including mandatory tithe deductions not permitted under s.46), payment in lieu of notice, severance pay, and general damages totalling UGX 20,064,000 plus interest at 15% per annum.

Outcome

Claimant's claim allowed; Respondent ordered to pay total monetary award of UGX 20,064,000 plus interest and costs

Facts

The Claimant was employed as a teacher by the Respondent on 5 June 2017 at a monthly salary of UGX 800,000 and a weekly allowance of UGX 15,000. In January 2019, the Respondent defaulted on salary payment and reduced the weekly allowance to UGX 8,000. The Respondent failed to pay salary for eight months (January, June, July, August, December 2019; February, November, December 2020). The Claimant also alleged illegal deductions of mandatory tithe totalling UGX 2,160,000. After the Claimant filed a complaint with the Wakiso District Labour Office and the matter could not be resolved, it was referred to the Industrial Court. The Respondent did not file a memorandum in reply and did not appear at the hearing. The court granted leave to proceed ex parte after being satisfied that the Respondent had been effectively served.

Issues

  1. Whether the Respondent breached her obligations under the employment contract.
  2. Whether the Claimant was constructively dismissed by the Respondent.
  3. What remedies is the claimant entitled to?

Orders

  • It is declared that the Respondent was in breach of the employment contract.
  • It is declared that the Claimant was constructively dismissed by the Respondent.
  • The Respondent is ordered to pay UGX 6,400,000 as unpaid wages.
  • The Respondent is ordered to pay UGX 864,000 in refund of illegal deductions.
  • The Respondent is ordered to pay UGX 800,000 in lieu of notice.
  • The Respondent is ordered to pay UGX 2,000,000 as severance pay.
  • The Respondent is ordered to pay UGX 10,000,000 as general damages.
  • The monetary awards shall attract interest at the rate of 15% per annum from the date of this award until payment in full.
  • The Claimant shall have costs of the claim.

Rules and key headnotes

Employment & Labour — Constructive Dismissal — Failure to Pay Wages — Unreasonable Conduct
An employer's failure to pay an employee's salary for eight months without justification constitutes unreasonable conduct under Employment Act s.65(1)(c) and amounts to a serious breach going to the root of the employment contract, thereby constituting constructive dismissal.
Employment & Labour — Illegal Deductions — Mandatory Tithe — Permitted Deductions
Mandatory tithe deductions from an employee's wages are not within the parameters of permitted deductions under Employment Act s.46, which limits deductions to tax, provident or pension fund contributions with written consent, agreed rent charges, union dues, or attachments by operation of law.
Employment & Labour — Payment in Lieu of Notice — Constructive Dismissal — Entitlement
Where an employee is constructively dismissed by the employer's failure or refusal to pay salary, the dismissal is without notice and the employee is entitled to payment in lieu of notice under Employment Act s.58(3)(b), the quantum depending on the length of service.
Employment & Labour — Severance Pay — Constructive Dismissal — Computation
An employee who is constructively dismissed is entitled to severance allowance under Employment Act s.87(a), computed at one month's pay for every year of service.
Damages & Quantum — General Damages — Assessment — Employment Disputes
In assessing general damages in employment disputes, the court considers the employee's earnings, age, position of responsibility, duration of contract, and employability, applying the principle of restitutio in integrum to compensate for humiliation, inconvenience, and suffering caused by wrongful dismissal.
Damages & Quantum — Aggravated Damages — Employer Conduct — Insufficient Evidence
Aggravated damages in employment disputes are awardable only where the employer's conduct demonstrates malice, callousness, degrading treatment, arrogance, or impunity; mere failure to pay wages without evidence of such aggravating conduct does not warrant an award of aggravated damages, as humiliation is adequately compensated by general damages.
Employment & Labour — Costs — Labour Disputes — Exception to General Rule
While costs follow the event, in labour disputes the award of costs is the exception rather than the rule; costs may be awarded where there is misconduct by the unsuccessful party, including failure to attend court proceedings and actions arising from non-payment of wages.

Legislation cited (7)

Cases cited (16)

  • Nyakabwa J Abwooli v Security 2000 Ltd (Labour Dispute Claim No. 108 of 2014)
  • Ugafode Microfinance Limited (MDI) v Kyoribona (Labour Dispute Appeal No. 34 of 2019)
  • Lear Shighadi Sinoya Vs Avtech System Kenya Labour Relations Cause No. 702/2016
  • Western Excavations (ECC) Ltd v Sharp [1978] IRLR 27 CA
  • Mbikka Dennis v Centenary Bank (Labour Dispute Claim No. 23 of 2014)
  • Tibenkana Edith v London Distillers (U) Ltd (Labour Dispute Reference No. 146 of 2019)
  • Allen Namuyiga v Export Trading Co. Ltd (Labour Dispute Reference No. 049 of 2020)
  • Donna Kamuli v DFCU Bank Ltd (Labour Dispute Claim No. 002 of 2016)
  • DFCU Bank Ltd v Donna Kamuli (Civil Appeal No. 121 of 2016)
  • Food for the Hungry v Ongaya Daniel (Labour Dispute Appeal No. 18 of 2020)
  • Stanbic Bank (U) Ltd v Constant Okou (Civil Appeal No. 60 of 2020)
  • Gullibhai Shilling v Kampala Pharmaceutical Ltd (Supreme Court Civil Appeal No. 6 of 1999)
  • Bank of Uganda v Betty Tinkasimire (Supreme Court Civil Appeal No. 12 of 2007)
  • Frederick Zaabwe v Orient Bank and 5 Others (Supreme Court Civil Appeal No. 4 of 2006)
  • Basiima Kabonesa v Attorney General and Another (Supreme Court Civil Appeal No. 16 of 2021)
  • Joseph Kalule v GIZ (Labour Dispute Reference No. 109 of 2020)

Full judgment

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

Olango_v_Hands_of_Love_SSS_Kabaga_(Labour_Dispute_Reference_216_of_2021)_[2023]_UGIC_71_(14_April_2023)
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.