Court orders Uganda Airlines to pay former CEO Muleya Shs455 million for illegal dismissal

The Industrial Court has ordered Uganda Airlines to pay its former Chief Executive Officer, Cornwell Muleya, about Shs 455 million in severance pay, general damages, and other costs for wrongful dismissal.

In his ruling, Justice Anthony Wabwire Musana found that Muleya’s suspension and eventual termination were unlawful and that he was denied a fair hearing.

According to court records, Muleya was first sent on a three-month leave of absence on 29 April 2021, then suspended on 21 May 2021 for another three months. His suspension was later extended on 20 August 2021, keeping him out of office for a total of six months. The judge noted this violated Section 63EA of the Employment Act, which limits suspension periods.

“By the date of commencement of the disciplinary hearing, the claimant had been on suspension for six months, contrary to the clear provisions of the law. That renders his suspension unlawful,” Justice Wabwire ruled.

The court also found that Uganda Airlines failed to provide sufficient proof that Muleya had been properly invited to or had refused to attend the disciplinary hearing that led to his dismissal.

“The evidence shows that between April 2021 and February 2022, over six letters were exchanged between both parties. It is only the invitation to the oral hearing of 11 November 2021, which recommended the claimant’s termination, that seems to have eluded the respondent,” the judge stated.

Justice Wabwire ruled that the airline’s disciplinary process was a “disguised unlawful dismissal,” saying Muleya’s right to defend himself was violated.

“Because the respondent was unable to show that it respected the claimant’s right to a fair oral hearing, we find his dismissal to be both procedurally and substantively unfair and unlawful,” he concluded.

As a result, the court directed Uganda Airlines to pay Muleya Shs 252 million in severance pay, Shs 77 million (equivalent to four weeks’ net pay) for failure to provide a fair disciplinary hearing, Shs 126 million in general damages, and Shs 460,800 as unpaid gratuity