The Industrial Court has ordered Absa Bank Uganda Limited to pay Shs 14 million to a former employee, Eddy Muleme, after finding that his dismissal was procedurally unfair.
Muleme, an Information Technology professional, had worked with the bank since July 2007, rising through the ranks to become Data Centre and Networks Engineer in March 2018 before his employment was terminated later that year.
Court heard that the dispute stemmed from a 2018 office relocation project in which the bank was moving from Hannington Road to Kampala Road. The exercise involved transferring infrastructure, including network systems, fibre cabling, power installations and workstations, to make the new premises operational.
As part of the relocation, electrical sockets and related materials were removed from the old premises and reused at the new location, a move presented as a cost-saving measure. However, a disagreement later arose over whether the removal and reuse of the installations had been properly authorised and whether the tasks fell within Muleme’s assigned responsibilities.
On June 20, 2018, Muleme was suspended on allegations of removing the installations without authorisation. He was subsequently invited to a disciplinary hearing held on June 28, 2018, before being dismissed on July 23, 2018. His appeal against the decision was later rejected by the bank’s appellate panel.
Dissatisfied, Muleme filed a labour complaint at Kampala Capital City Authority, which was later referred to the Industrial Court. In his claim, he argued that his dismissal was unlawful and unfair, stating that he had been subjected to disciplinary proceedings on charges different from those in his suspension letter and that his contribution to saving project costs had not been considered.
The bank, however, denied wrongdoing, maintaining that Muleme was lawfully dismissed for acting outside his mandate and removing installations without authorisation. It argued that he had been granted a fair hearing, including being notified of charges, participating in investigations, attending a disciplinary hearing and lodging an appeal.
In his ruling, Anthony Wabwire Musana held that while the bank had a valid reason to dismiss Muleme, the process followed was flawed and did not meet the required procedural standards.
The court consequently awarded Muleme compensation equivalent to four weeks’ pay of Shs4.7 million and two months’ salary amounting to Shs9.4 million, bringing the total to Shs14 million.
