Wakilii

Ssemalwade Wasswa Micheal v Uganda Coffee Development Authority (Civil Suit No. 152 of 2010)

High Court · [2018] UGHCCD 280 · 2018 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of contract of employment arising from termination
Decision
Plaintiff's claim for unfair termination upheld; general damages awarded; exemplary damages refused

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that termination of employment was unfair where the employer failed to comply with procedural requirements under the Employment Act. Although the employee's contract had expired and was retrospectively renewed, he remained in lawful employment by conduct when he continued to work and receive salary. Before lawful termination, the employer was obliged to explain reasons for dismissal and give the employee a hearing under sections 66 and 68 of the Employment Act. The defendant failed to prove reasons for dismissal and did not afford the plaintiff a hearing. Court awarded general damages of UGX 15,000,000 for unfair termination but refused exemplary damages.

Outcome

Plaintiff's claim for unfair termination upheld; general damages awarded; exemplary damages refused

Facts

The plaintiff was employed by the defendant from 1991 in various positions on permanent and pensionable terms until 1998, when terms were restructured to contractual basis. He was retained as Principal Administration Officer on continuous three-year contracts, last renewed 1 October 2008. After expiry, the plaintiff continued working without a formal renewed contract as the defendant had no board of directors. He was appraised as 'good' by the Performance Committee and his contract was retrospectively renewed. In February 2010, the defendant's newly appointed board terminated his employment summarily on grounds of unsatisfactory performance, without prior hearing or explanation. The plaintiff was paid terminal benefits including notice pay, but filed suit claiming general and exemplary damages for breach of contract. The defendant contended termination was lawful based on poor performance and that no hearing was required.

Issues

  1. Whether or not the plaintiff's services were lawfully terminated?
  2. What are remedies available to the Plaintiff?

Orders

  • The plaintiff's termination was unfair and wrongful.
  • The plaintiff is awarded UGX 15,000,000 as general damages for unfair termination of contract of employment.
  • Exemplary damages are refused.
  • General damages shall attract interest at 10% per annum from the date of filing until payment in full.
  • The plaintiff is awarded costs of the suit.

Rules and key headnotes

Employment & Labour — Termination of Employment — Continuance of Employment by Conduct — Effect of Contract Expiry Where Employee Continues to Work and Receive Salary
Where an employee continues to work and receive salary after expiry of a fixed-term contract, the employee remains in lawful employment by conduct and is entitled to the terms and conditions of the earlier contract, giving rise to a legitimate expectation that the contract will be renewed or that the employee will be treated fairly before termination.
Employment & Labour — Unfair Termination — Procedural Fairness — Duty to Give Hearing and Explain Reasons
Under sections 66 and 68 of the Employment Act, an employer must, before dismissing an employee on grounds of misconduct or poor performance, explain the reasons for dismissal in a language the employee can understand and give the employee a hearing to make representations. Failure to comply with these procedural requirements renders the termination unfair.
Employment & Labour — Termination of Employment — Burden of Proof — Employer's Duty to Prove Reason for Dismissal
Under section 68 of the Employment Act, in any claim arising from termination, the employer bears the burden of proving the reason or reasons for dismissal. Where the employer fails to discharge this burden, the dismissal is deemed unfair within the meaning of section 71.
Damages & Quantum — General Damages — Unfair Termination — Assessment
General damages for unfair termination are intended to restore the plaintiff to the position he would have been in had he not suffered the wrong. Where termination is unfair solely due to procedural non-compliance rather than substantive wrongfulness, the court will assess damages with regard to the circumstances of the case.
Tort Law — Exemplary Damages — Employment Termination — Preconditions for Award
Exemplary damages are punitive in nature and lie outside the field of compensation. They are awarded to punish wrongful conduct and act as a deterrent. A plaintiff seeking exemplary damages must demonstrate justification for such an award. Where the defendant has attempted to comply with the law, exemplary damages will not be awarded.

Legislation cited (8)

Cases cited (5)

  • Dr. Denis Lwamafa v Attorney General (High Court Civil Suit No. 79 of 1983)
  • Ouma vs Nairobi City Council [1976] KLR 298
  • Rookes vs Barnard & Others [1964] AC 1129
  • Obongo vs Municipal Council of Kisumu [1971] EA 91
  • Kakubhai Mohanlai v Warid Telecom Uganda (High Court Civil Suit No. 224 of 2011)

Full judgment

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

Ssemalwade Wasswa Micheal v Uganda Coffee Development Authority (Civil Suit No. 152 of 2010) [2018] UGHCCD 280 (17 September 2018)
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.