Peter Kiwanuka, the former head of Human Resources at Uganda Clays has been awarded Shs128 million in general damages following his unlawful dismissal in March 2020.
Justice Anthony Wabwire Musana of the Industrial Court said Kiwanuka’s dismissal was “procedurally and substantively unfair and unlawful,”
Kiwanuka joined Uganda Clays in December 2012 as Human Resource Manager and was later promoted to Head of Human Resources and Support Services. His three-year contract was extended in 2019.
On March 6, 2020, he received a dismissal letter from the company’s board of directors citing “persistent conflicts and disharmony within top management.”
Uganda Clays later published notices in The New Vision saying he had left “by mutual consent.”
But Kiwanuka rejected that version of events, insisting he had been dismissed without warning, hearing, or any evidence of wrongdoing.
Through his lawyers, Semambo & Semambo Advocates, he sued the company, seeking over Shs 1.7 billion in lost earnings, loan repayment, damages, and costs.
He argued that the dismissal tarnished his reputation, caused psychological distress, and led to his bank blocking his loan account.
Uganda Clays maintained that the board acted within its powers to terminate Kiwanuka’s contract due to persistent conflicts that had affected the company’s performance.
One of the board members, Marion Adengo Muyobo said after Kiwanuka’s failed bid to become managing director in 2014, his relationship with the successful candidate deteriorated, creating “a case of two bulls in one kraal.”
She said the board unanimously decided to replace top management, including Kiwanuka, and that he was offered a chance to resign but refused. She admitted, however, that no formal disciplinary hearing or investigation was conducted.
Kiwanuka’s lawyers argued that the company’s actions amounted to dismissal for misconduct, which under Section 65 of the Employment Act requires a fair hearing. They said the company violated his constitutional right to be heard and failed to conduct an investigation.
“Uganda Clays’ failure to provide a fair hearing rendered the dismissal unlawful and unfair,” Semambo submitted.
The company said Kiwanuka’s termination was lawful since his contract allowed either party to end it with three months’ salary in lieu of notice, a payment he accepted.
But Kiwanuka’s lawyers countered that the payment could not replace the legal requirement for a fair hearing.
Ruling in Kiwanuka’s favour, Justice Musana said the company’s reasons for ending his employment amounted to allegations of misconduct and therefore required a disciplinary process.
“Uganda Clays did not issue Kiwanuka an invitation to any hearing to interrogate the allegations of persistent conflicts and disharmony,” Musana noted.
“By failing to hold a hearing, Uganda Clays is in breach of the central tenet of labour law, the right to a fair hearing.”
He added that Uganda Clays’ belief that it already had enough information was “suggestive of a perception of a hearing as a perfunctory formality. It is not.”
Musana also ruled that offering Kiwanuka a chance to resign before dismissing him amounted to a “forced resignation” and was therefore unlawful.
He further found that the company had no credible evidence of misconduct.
“In the absence of notification, investigation report and a hearing … it is impossible to say that Uganda Clays had a credible, well-founded, and substantive reason for dismissal,” he ruled.
He said the company’s argument that Kiwanuka accepted terminal benefits could not justify the dismissal.
Kiwanuka had sought Shs1 billion in damages for defamation, citing newspaper notices that claimed he had left by “mutual consent.”
The court agreed that the statement was false but not defamatory.
All said and done, the court awarded Kiwanuka Shs 114 million in general damages and Shs14 million for failure by Uganda Clays to subject him to a disciplinary hearing.
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