The High Court in Kampala has ruled that Yalelo Uganda Limited, a prominent aquaculture company, must pay its former commercial director, Martin Kasasira, more than Shs 176 million as compensation for unlawful and unfair dismissal from his position.
A four-judge panel from the Industrial Division, composed of Justices Anthony Wabwire Musana, Jimmy Musimbi, Emmanuel Bigirmana, and Can Amos Lapenga, determined that Yalelo terminated Kasasira’s employment without adhering to proper procedural and legal requirements.
Kasasira joined Yalelo in June 2020 and was dismissed in May 2022. The dismissal cited allegations of underperformance and gross misconduct. However, Kasasira claimed that he was never given a proper hearing before the termination. He stated that Yalelo’s CEO, Piers Mudd, sent him an email raising concerns about his performance and requesting a meeting to discuss the matter. Before this meeting could take place, he received a dismissal letter.
Feeling aggrieved, Kasasira initially sought redress at the Kampala Labour Office and later escalated the matter to the High Court. The court found that Yalelo’s actions violated legal principles, particularly the right to a fair hearing.
“The email correspondence does not, under any interpretation, qualify as a notification of a disciplinary hearing,” the court stated. “There was no indication that the respondent [Yalelo] was considering dismissal or any other serious consequences. Furthermore, no formal hearing was conducted, which was a statutory requirement under employment law.”
The court also emphasized that the company should have conducted a thorough investigation into the allegations against Kasasira and shared its findings with him before making any termination decisions.
“It is a well-established principle that failing to follow internal disciplinary procedures constitutes an unfair labor practice. Based on the evidence presented, the claimant’s dismissal was both procedurally and substantively unfair, making it unlawful,” the judgment read.
The court ordered Yalelo to issue a certificate of service to Kasasira within 15 days and awarded him compensation as follows:
Shs 12,096,774 for unpaid leave
Shs 37,545,000 as one month’s salary
Shs 70,084,300 as severance pay
Shs 56,317,500 in general damages
Additionally, the total amount will accrue a 14% interest until it is fully paid.
This ruling highlights the necessity for employers to follow due process in disciplinary actions to avoid violating labor laws.
