The Industrial Court has ordered Uganda Airlines to pay about Shs 455 million in severance pay, and general damages among other costs its former CEO, Cornwell Muleya for wrongful dismissal.
Muleya who was sacked in 2021 dragged the national carrier to court.
In the court's decision, Justice Anthony Wabwire Musana ruled that Muley was unlawfully suspended, before he was finally sacked by the national carrier.
“It is common that the claimant was first sent on leave of absence for three months on the 29th of April 2021. Then, on the 21st of May 2021, he was suspended for three months. On the 20th of August 2021, the suspension was extended for another three months. Therefore, by the date of commencement of the disciplinary hearing, the claimant had been on suspension for six months, contrary to the clear provisions of Section 63EA. That renders his suspension unlawful under the EA,” the judge said.
Justice Wabwire therefore ruled that Muleya was not accorded a fair hearing by the airline before he was sacked.
The judge said by the look, Muleya’s dismissal was disguised but unlawful which is illegal, noting that it was no longer fashionable for employers to dismiss employees without any justification even if the employee is paid in lieu of notice.
“Considering the underlying circumstances of disciplinary proceedings before the claimant’s termination with notice, we hold this to have been a disguised unlawful dismissal.”
“Because the Respondent was unable to show that it respected the Claimant’s right to a fair oral hearing at which he should defend himself against the allegations made against him, we find his dismissal to be both procedurally and substantively unfair and unlawful.”
The court consequently directed that Uganda Airlines pays shs252 million as severance pay, shs77 million as four weeks’ net pay for failure to accord Muleya a disciplinary hearing, shs126 million as general damages and shs460,800 as unpaid gratuity.
