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.
In his decision, Justice Anthony Wabwire Musana ruled that Muley was unlawfully suspended, before he was finally sacked by Uganda Airlines.
“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 whereas Uganda Airlines tried to portray itself as one that accorded a fair hearing to Muleya, its acts show otherwise.
“In this determination, the respondent hypothesises that the claimant had deliberately refused to attend the hearing. We do not find this hypothesis acceptable because the evidence does not support it. The evidence shows that between the 29th of April 2021 and the 15th day of February 2022, when the Claimant received the termination letter, over six letters were exchanged between the disputants, including the notice of commencement of disciplinary proceedings dated the 3rd August 2021 which the claimant duly acknowledged receipt of on the 11th of August 2021, and the claimant’s letters protesting his treatment by the Respondent. It is only the service of the invitation to the oral hearing set for the 11th of November 2021, which meeting recommended the claimant’s termination, which appears to have eluded the respondent.”
“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.”
According to the Industrial Court, Uganda Airlines failed to show during proceedings that it respected its former CEO’s right to a fair oral hearing , adding that his dismissal was 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.
