In a landmark ruling delivered by the Industrial Court of Uganda, Hellen Alaba, a former Banking Assistant at the Bank of Uganda (BOU), emerged victorious in her 19-year legal battle for retirement benefits. The court ruled that Alaba is entitled to her accrued pension benefits for her service between May 1, 1984, and February 10, 1994, when she was dismissed.
The case, filed in 2017, centered on Alaba’s dismissal in 1994, after which her retirement benefits were frozen until she reached the official retirement age of 55. When she turned 55 in 2013, BOU denied her benefits, citing Rule 8 of its Retirement Benefits Scheme (RBS), which disqualifies dismissed employees from receiving retirement benefits.
However, Alaba argued that her dismissal letter clearly stated she would receive her benefits upon reaching retirement age. She invoked the legal principle of estoppel, asserting that BOU could not now go back on its promise.
Presiding over the matter, Justice Anthony Wabwire Musana, together with panelists Hon. Jimmy Musimbi, Hon. Emmanuel Bigirimana, and Can Amos Lapenga, ruled in Alaba’s favor. The court clarified that although Rule 8 excludes dismissed employees from future benefits, it does not negate the right to benefits that were already accrued before the dismissal.
The court also noted that the bank’s decision to freeze the benefits until retirement age aligned with the discretionary powers granted under the RBS rules, but its refusal to pay upon retirement was unjustified.
BOU was ordered to compute and pay Alaba her accrued pension benefits within 90 days. The court further awarded her Shs 19 million in general damages and another Shs 19 million in exemplary damages for the distress caused by the prolonged denial of her entitlements. Additionally, the bank was directed to cover her legal costs.
“This judgment underscores the importance of fairness and equity in employment disputes,” said Alaba’s lawyer, MDouglas Rwambale. “It is a victory not just for my client, but for all workers who seek justice in the face of institutional errors.”
The court sharply criticized BOU for waiting 19 years to inform Alaba of the alleged inconsistency in her dismissal letter, calling the delay “inexcusable.” The judgment also emphasized the broader social protection aspect of retirement benefits, aligning the ruling with international labor and human rights standards.
BOU was not present during the delivery of the judgment. However, the court assured that the ruling would be published on its website and made available through the Uganda Legal Information Institute (ULII).
This case sets a significant precedent in Uganda’s labor law landscape, reinforcing employees’ rights to accrued benefits and affirming the responsibility of employers to honor their contractual and statutory obligations.
