Wakilii

Tumusiime & 5 Ors v Mukwano Personal Care Products (Labour Dispute Reference No. 22 of 2014)

Industrial Court · [2019] UGIC 30 · 2019 Claim Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Labour dispute reference arising from High Court Civil Suit No. 213 of 2014, heard ex parte after respondent failed to appear
Decision
Claimants' claim succeeded; declaration of unfair dismissal granted with severance pay and general damages awarded to each claimant

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the claimants' dismissal was unlawful and unfair. The employer failed to conduct a proper investigation before the disciplinary hearing, gave the claimants less than 24 hours to prepare their defence, and the evidence before the disciplinary committee did not implicate the claimants in the alleged attempted strike. The claimants were denied a fair hearing as required by Section 66 of the Employment Act. Declaration of unfair dismissal granted, severance pay awarded at one month's salary per year worked, and general damages of UGX 500,000 per claimant awarded.

Outcome

Claimants' claim succeeded; declaration of unfair dismissal granted with severance pay and general damages awarded to each claimant

Facts

Six claimants were employees of the respondent company. On 10 February 2012, they were suspended on suspicion of involvement in an attempted illegal strike at the workplace. The claimants and other employees had previously demanded a salary increase. On 11 February 2012, the claimants were summoned to a disciplinary meeting and summarily dismissed. The respondent alleged the claimants conducted an illegal riot, failed to obey lawful orders, and caused loss of trust and confidence. The claimants denied involvement in the attempted strike and claimed they were denied a fair hearing. When the matter came for hearing, the respondent and its advocate did not appear, and the court proceeded ex parte after being satisfied they were served.

Issues

  1. Whether the dismissal of the claimants was unfair.
  2. What remedies are available to the parties?

Orders

  • Declaration granted that the dismissal was illegal.
  • Order for compensation under Section 78 of the Employment Act not granted as the Industrial Court is not a labour office.
  • Each claimant awarded severance pay calculated at one monthly salary for every year worked.
  • Each claimant awarded general damages of UGX 500,000.
  • All sums to attract interest at 20% per annum until payment in full.
  • No order as to costs.

Rules and key headnotes

Employment & Labour — Unfair Dismissal — Fair Hearing Requirements — Section 66 Employment Act
Before dismissing an employee for misconduct, an employer must explain the reasons for considering dismissal in a language the employee understands, allow the employee to be accompanied by a person of their choice, hear and consider the employee's representations, and give the employee reasonable time to prepare their defence. Failure to comply with these requirements renders the dismissal unfair.
Employment & Labour — Dismissal Procedure — Investigation and Disciplinary Hearing — Distinction
Where an employee is suspended pending investigation, the employer must conduct a proper investigation to confirm suspicions before constituting a disciplinary committee. A disciplinary inquiry cannot transform itself into a disciplinary hearing without the employee being formally informed of the infractions alleged and given sufficient time to prepare a defence before an impartial tribunal.
Employment & Labour — Summary Dismissal — Burden of Proof — Section 68 Employment Act
In any claim arising out of termination, the employer must prove the reason or reasons for dismissal. The reasons must be matters which the employer at the time of dismissal genuinely believed to exist and which caused the employer to dismiss the employee. Where the employer fails to discharge this burden, the dismissal shall be deemed unfair.
Employment & Labour — Industrial Action — Right to Strike — Section 3 Labour Unions Act
Employees have the right to withdraw their labour and take industrial action. However, such withdrawal of labour must be done in an orderly manner without causing destruction of property or unnecessary inconvenience which may be illegal.
Employment & Labour — Remedies — Severance Pay — Section 87 Employment Act
Where an employee is unlawfully terminated, they are entitled to severance pay under Section 87 of the Employment Act. In the absence of any arrangement between the employer and employee as to calculation of severance, the court may award one monthly salary for every year worked as severance pay.

Legislation cited (12)

Cases cited (1)

  • Donna Kamuli v DFCU (Labour Claim No. 2 of 2014)

Full judgment

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

Tumusiime_&_5_Ors_v_Mukwano_Personal_Care_Products_(Labour_Dispute_Reference_No._22_of_2014)_[2019]_UGIC_30_(10_May_2019)
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.