Wakilii

Opio v Teso Cooperative (Labour Dispute Reference 1 of 2021)

Industrial Court · [2024] UGIC 7 · 2024 Application Dismissed — Referred to Arbitration AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference arising from claim of unlawful termination, dismissed on preliminary objection regarding jurisdiction
Decision
Matter dismissed for lack of jurisdiction and referred for arbitration under Section 73 of the Co-operative Societies Act

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Industrial Court lacks jurisdiction to hear an employment dispute involving an employee of a registered cooperative society where the employment contract and the Co-operative Societies Act require such disputes to be referred to arbitration. Section 6 of the Labour Disputes (Arbitration and Settlement) Act mandates that where arbitration arrangements exist, the Labour Officer must not refer the matter to the Industrial Court but must ensure parties follow the agreed arbitration procedure. The matter was dismissed and referred for arbitration.

Outcome

Matter dismissed for lack of jurisdiction and referred for arbitration under Section 73 of the Co-operative Societies Act

Facts

The Respondent, Teso Co-operative, is a cooperative union registered under the Co-operative Societies Act Cap 112. It employed the Claimant as Production and Marketing Officer from 18 August 2019 to 31 July 2022 under a fixed-term contract. The Claimant was terminated before the expiry of his contract and brought a claim for unlawful termination. The matter was filed before the Labour Officer who referred it to the Industrial Court. At the pre-session hearing on 16 May 2024, the Respondent indicated its intention to raise a preliminary objection. The Respondent argued that under Section 73 of the Co-operative Societies Act and Clause 55 of its bye-laws, any dispute involving an officer (which includes employees) must be referred to arbitration. The Respondent had informed the Labour Officer from the outset that the matter should be handled through arbitration, but the Labour Officer proceeded to refer it to the Industrial Court.

Issues

  1. Whether the Industrial Court has jurisdiction to determine a claim which should have been resolved by arbitration under Section 73 of the Co-operative Societies Act and Clause 55 of the Respondent's bye-laws.

Orders

  • The matter is referred for arbitration as provided for under Section 73 of the Co-operative Societies Act, Clause 55 of the Respondent's bye-laws and Section 6 of the Labour Disputes (Arbitration and Settlement) Act.
  • Labour Dispute Reference No. 01 of 2021 is dismissed for being improperly and premature before this court.
  • No order as to costs is made.

Rules and key headnotes

Employment & Labour — Jurisdiction — Industrial Court — Arbitration Agreements in Employment Contracts
Where an employment contract between a registered cooperative society and its employee provides for arbitration of disputes, and Section 73 of the Co-operative Societies Act mandates arbitration for disputes involving officers (which includes employees), the Industrial Court lacks jurisdiction to hear the dispute until the arbitration process has been exhausted.
Arbitration & ADR — Mandatory Arbitration — Co-operative Societies — Scope of 'Officer'
Under Section 2 of the Co-operative Societies Act, the term 'officer' is defined to include employees. Therefore, Section 73 of the Act, which requires disputes involving officers to be referred to arbitration, applies to employment disputes involving employees of registered cooperative societies.
Employment & Labour — Labour Disputes (Arbitration and Settlement) Act — Section 6 — Existing Arbitration Arrangements
Section 6 of the Labour Disputes (Arbitration and Settlement) Act provides that where there are existing arrangements for settlement by arbitration between parties, the Labour Officer shall not refer the matter to the Industrial Court but shall ensure the parties follow the agreed arbitration procedure. A Labour Officer who refers such a matter to the Industrial Court acts contrary to the statute.
Arbitration & ADR — Arbitration and Conciliation Act — Application to Co-operative Societies Disputes
Section 73(8) of the Co-operative Societies Act provides that the Arbitration and Conciliation Act applies to disputes under Section 73 to the extent it is not inconsistent with the Co-operative Societies Act. Therefore, Section 5(1) of the Arbitration and Conciliation Act, which requires a court to refer a matter back to arbitration where an arbitration agreement exists, applies to employment disputes involving cooperative society employees.
Administrative Law — Jurisdiction — Substance Over Form — Article 126(2)(e)
Article 126(2)(e) of the Constitution enjoins courts to resolve substance rather than form. However, this principle does not permit a court to assume jurisdiction where the law explicitly requires a dispute to be resolved through arbitration. Courts must pronounce on jurisdictional issues even where procedural objections to jurisdiction may be defective.

Legislation cited (6)

Cases cited (4)

  • Dr. Kagoro Kaijamurubi v Jeremy John Graham (Civil Suit No. 48 of 2021)
  • Anywar Charles & 4 others v Gulu University (Civil Suit No. 16 of 2022)
  • Ozzu Brothers Enterprises v Ayikoru Mika (Civil Revision No. 002 of 2016)
  • Giorgio Zenegalia v Sari Consulting Ltd (Labour Dispute Reference No. 229 of 2019)

Full judgment

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

Opio_v_Teso_Cooperative_(Labour_Dispute_Reference_1_of_2021)_[2024]_UGIC_7_(25_June_2024)
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.