Lawpoint Uganda

This ruling sets a precedent that employers must formalise labour relations or face legal liability irrespective of registration status. For unregistered businesses such as small workshops or agricultural firms, the decision sends a clear warning: informal status does not extinguish legal responsibility.

In the employment context, where an employer has benefited from the labour of an individual under an employment arrangement, it may not escape liability by pleading technical non-existence or lack of incorporation. 

The rule of law is the bedrock of any functional society and is especially critical in the realm of employment relations. It ensures that both employers and employees operate within a framework of fairness, transparency, and accountability. In Uganda, as in many jurisdictions, the Employment Act and principles of natural justice serve as guiding lights for resolving workplace disputes.

An employer cannot indefinitely benefit from an employee’s higher-grade service while denying commensurate pay. Equity abhors such exploitation.

The Court clarified that reinstatement is a discretionary remedy under Section 71(6) of the Employment Act and not mandatory. Where a dismissal is unfair solely because of procedural irregularities, courts are not obligated to order reinstatement. The Court echoed the Supreme Court's stance in Bank of Uganda v Betty Tinkamanyire, cautioning against forcing employers to retain employees they no longer wish to employ.

There is no such thing as inherent appellate jurisdiction. Any right of appeal to the Supreme Court from decisions of the Court of Appeal i

Where co-defendants have conflicting interests, one may cross-examine the other’s witnesses.

The court emphasized that redundancy is not about fault but about business needs. However, fairness demands transparency, consultation, and

The court distinguished section 65(1)(a) from section 66 of the Employment Act, (now revised as section 64 (1) (a) from section 65 of the Em

The court emphasized that a PIP is a tool designed to progressively and consistently monitor employee performance with the goal of improvement, not as a means to facilitate termination. An objective PIP must include specific expectations, action plans, resources for improvement, and clear consequences for continued poor performance.