Wakilii

Serwamba v Deneva Company Limited (Labour Appeal 19 of 2019)

Industrial Court · [2023] UGIC 18 · 2023 Appeal Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Appeal from decision of Labour Officer dismissing claim for lack of jurisdiction
Decision
Appeal dismissed; matter to be pursued in Kenya if appellant wishes to proceed

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Industrial Court dismissed the appeal and upheld the Labour Officer's finding that he lacked jurisdiction to hear the dispute. The Court found that the appellant was employed by a company incorporated and domiciled in Kenya, the alleged misconduct occurred in Kenya, and the employment contract was executed with the Kenyan entity. Under Section 3(5) of the Employment Act 2006, the Act does not apply to employment outside Uganda. The Kenyan Labour Court had the most real and substantial connection with the dispute. The appellant failed to demonstrate any hardship if he pursued the matter in Kenya.

Outcome

Appeal dismissed; matter to be pursued in Kenya if appellant wishes to proceed

Facts

The appellant was employed as a driver by Deneva Company Limited. He applied for the position in March 2009 addressing his application to a Mombasa, Kenya postal address. In April 2018, while transporting cargo, he was accused of transporting unauthorized maize cargo in Kenya. Upon his return, he was summarily dismissed. He filed a labour dispute with the Kampala Capital City Authority Labour Officer claiming unfair dismissal. The respondent raised a preliminary objection that the Labour Officer lacked jurisdiction because the respondent was a Kenyan-incorporated company, the employment services were rendered to a foreign entity, and the alleged misconduct occurred in Kenya. The respondent produced a Kenyan certificate of incorporation dated March 2007, the appellant's application letter addressed to Kenya, and a police abstract report from Changamwe Police Station in Mombasa describing the alleged incident. The Labour Officer upheld the preliminary objection and dismissed the complaint for lack of jurisdiction.

Issues

  1. Whether the Labour Officer erred in law and fact when he held that he had no jurisdiction to entertain the labour dispute.
  2. Whether the Labour Officer failed to evaluate the evidence before him and thus misdirected himself in arriving at a wrong decision.

Orders

  • Appeal dismissed.
  • Each party to bear its own costs.

Rules and key headnotes

Employment & Labour — Jurisdiction — Employment Outside Uganda — Application of Employment Act 2006
Under Section 3(5) of the Employment Act 2006, nothing in the Act applies to employment outside Uganda except where the contrary is provided. Where an employee is employed by a company incorporated and domiciled outside Uganda and the employment services are rendered outside Uganda, the Employment Act 2006 does not apply and Ugandan labour authorities lack jurisdiction to hear disputes arising from such employment.
Administrative Law — Jurisdiction — Statutory Jurisdiction — Nullity of Proceedings Without Jurisdiction
Jurisdiction is a creature of statute. Proceedings conducted by a court or tribunal without jurisdiction are a nullity. A court or tribunal must be clothed with jurisdiction before it can adjudicate a dispute, and it must decline to hear a matter the moment it forms the opinion that it lacks jurisdiction.
Civil Procedure — Forum Non Conveniens — Most Real and Substantial Connection Test
In determining the proper forum for a dispute with cross-border elements, the court must consider whether there is another available forum having competent jurisdiction that is more appropriate for the trial of the dispute. Factors include the law governing the transaction, the places where the parties reside or carry on business, the availability of witnesses, and which forum has the most real and substantial connection with the dispute. The court will decline jurisdiction where substantial justice can be obtained in the foreign jurisdiction.
Employment & Labour — Costs in Labour Disputes — Exception Rather Than Rule
In labour disputes, the award of costs is the exception rather than the rule. Where a matter rests on a question of jurisdiction without misconduct by the unsuccessful party, there shall be no order as to costs and each party shall bear its own costs.

Legislation cited (4)

Cases cited (10)

  • Father Nanensio Begumisa and three Others v Eric Tiberaga [2004] KALR 236
  • Kifamunte Henry v Uganda (S.C Criminal Appeal No. 10 of 1997)
  • Baku Raphael Obudra and Another v Attorney General (S.C.C.A No. 1 of 2005)
  • Desai v Warsaw [1967] EA 351
  • Okullu and Another v Ocepa (LDMA 09 of 2022)
  • Owners of Motor Vessel Lillian S v Caltex Oil Kenya Limited [1989] KLR 1
  • Attorney General of the United Republic of Tanzania v African Network of Animal Welfare (Appeal No. 3 of 2011)
  • Spiliada Maritime v Cansulex [1987] 1 AC 460
  • C and 11 Others v Attorney General and Another (Civil Suit 278 of 2013) [2020] UGHCCD 55
  • Joseph Kalule v GIZ (LDR No. 109/2020)

Full judgment

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

Serwamba_v_Deneva_Company_Limited_(Labour_Appeal_19_of_2019)_[2023]_UGIC_18_(6_June_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.