Unlawful Dismissal or Termination - Justice Centres Uganda

Unlawful Dismissal or Termination

What is termination?

According to Section 64 the Employment Act 226 as amended, termination occurs in the instances where the contract of service is:

  • Ended by the Employer with notice,
  • A contract for a fixed term or task ends without renewal for a period of one week from the date of expiration of the contract on the same terms or terms not less favorable to the employee,
  • Ended by the Employee with or without notice due to unreasonable conduct from the employer towards the employee and
  • Ended by the employee after receiving notice of termination of the contract of service from the employer but before the notice expires.

Therefore, any one of these situations amounts to lawful termination of a contract of service

Who can terminate a contract of service?

It is important to note that either the employer or the employee may terminate a contract of service as per Section 64 above.

How is lawful termination carried out?

The Employment Act provides for the steps that an Employer MUST carry out in order for termination to be considered lawful as follows:

  1. Where the ground for termination is of either misconduct or poor performance, the employer SHALL explain to the employee in a language they understand the reasons for the dismissal and as an employee, you can have another person present for this explanation.
  2. The employer SHALL give the employee and any person whom they desire a hearing and consider the explanations put forth in the hearing.
  3. The employer SHALL give the employee reasonable time to prepare for the hearing above.

NOTE: In accordance with the Employment Act, termination becomes unlawful where the above steps are not complied with by the Employer. Termination also becomes unfair where the employer fails to provide reason(s) for the dismissal. Plus where the employer doesn’t act in accordance with justice and equity in terminating the employee from service.

What to do when unlawfully terminated?

The employee shall within 3 months make a complaint to the labour officer and the labour officer has the mandate to order the employer to pay the employee the equivalent of four weeks net pay if satisfied with the authenticity of the complaint.

Where & how to report in case of unlawful termination?

Report to the Labour Officer by way of a formal letter addressed to the Labour Officer.

What is summary termination?

The general rule provides that no employer has a right to terminate a contract of service without notice or with less notice that provided by the law or contract. However, summary termination is the exception to this. Summary termination takes place where the employee through their conduct, breaks a KEY obligation under their contract of service and as a result, the employer terminates the service of the employee without notice or with less notice than provided by the law.

What do you do when you have been summarily terminated without justification?

The employee may within six months after the date of dismissal present a complaint to a labour officer (by way of formal letter) who shall seek to settle the matter by mediation.

What is dismissal?

Dismissal is defined under the employment act as the discharge of an employee from employment at the initiative of their employer when the employee commits a verifiable misconduct.

What does not amount to fair reasons for dismissal?

The following are not grounds for dismissal.

  • Pregnancy or any reason connected to the pregnancy.
  • Taking or proposing to take leave you are entitled to under the contract or law.
  • Being a member of a labour union
  • Participating in activities of a labour union
  • Being in office or seeking office in a labour union
  • Refusal to withdraw from of labour union
  • Race, colour, sex, religion, political opinion or affiliation, nationality, social origin, marital status, HIV status or disability
  • Initiating of legal proceedings against the employer
  • Employee’s absence from work for any period up to 3 months on grounds of illness or injury.

Sources:

Employment Act Cap 226

Case Law.

 

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