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Uganda Judgment

HC: Civil Division (Uganda)

Cavendish University Uganda Limited v Agolei (Miscellaneous Application 652 of 2021) [2023] UGHCCD 418 (28 March 2023)

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Professional case brief

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Source document

01

Holding and result

The court held that while section 93 of the Employment Act grants jurisdiction to the labour officer to handle employment disputes, it does not oust the original unlimited jurisdiction of the High Court, particularly in cases where the remedies sought, such as general and punitive damages, are beyond the powers of the labour officer. The court relied on appellate authority confirming that the High Court and Industrial Court have concurrent jurisdiction in employment matters. Since the respondent's claim included general damages, which the labour officer cannot award, the suit was properly before the High Court. The application to strike out the suit for want of jurisdiction was therefore dismissed for lack of merit.

Court disposition

application dismissed

Orders

  • The application is hereby dismissed.
  • Civil Suit No. 47 of 2021 shall proceed on its merit.
  • Costs of this application be in the cause.

02

Material facts

Parties

Cavendish University Uganda Ltd

Applicant Counsel: Isaac Walukagga and Gulam Hussein of MMAKS Advocates

Jimmy Danny Agolei

Respondent Counsel: Mooli Albert Sibuta of Waluku Mooli & Co. Advocates

03

Procedural history

  1. Posture

    Miscellaneous Application / Ruling on Preliminary Objection Regarding Jurisdiction

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that section 93(2)(b) of the Employment Act vests jurisdiction in the labour officer to hear and determine disputes relating to breach of contract of service, thereby ousting the jurisdiction of the ordinary civil courts. The applicant relied on the case of Former employees of G4S Security Services Uganda Ltd v G4S Security Services Uganda Ltd SCCA No. 18 of 2010, asserting that employment matters should be handled exclusively by labour officers and the Industrial Court.
Respondent
The respondent contended that the High Court retains jurisdiction over employment disputes, especially where claims for general, special, and punitive damages are made, which the labour officer cannot award. The respondent cited Wanzusi Samuel v Kakira Sugar Ltd HCCS No. 202 of 2015 and Eng. John Eric Mugyenzi v Uganda Electricity Generation Co. Ltd CACA No. 167 of 2018 to support the argument that the High Court and Industrial Court have concurrent jurisdiction and that section 93 of the Employment Act does not oust the High Court's jurisdiction.

05

Court’s reasoning

  1. 01

    Section 93, Employment Act; Eng. John Eric Mugyenzi v Uganda Electricity Generation Co. Ltd CACA No. 167 of 2018

    Section 93 of the Employment Act provides for the jurisdiction of the labour officer in employment disputes, but does not oust the original unlimited jurisdiction of the High Court, especially where remedies sought exceed the powers of the labour officer.

  2. 02

    Wanzusi Samuel v Kakira Sugar Ltd HCCS No. 202 of 2015

    The High Court and the Industrial Court have concurrent jurisdiction in employment matters, and the High Court may entertain claims for damages that the labour officer cannot grant.

06

Ratio, limits and disposition

Ratio decidendi

The court held that while section 93 of the Employment Act grants jurisdiction to the labour officer to handle employment disputes, it does not oust the original unlimited jurisdiction of the High Court, particularly in cases where the remedies sought, such as general and punitive damages, are beyond the powers of the labour officer. The court relied on appellate authority confirming that the High Court and Industrial Court have concurrent jurisdiction in employment matters. Since the respondent's claim included general damages, which the labour officer cannot award, the suit was properly before the High Court. The application to strike out the suit for want of jurisdiction was therefore dismissed for lack of merit.

Obiter and limits

  • A labour dispute can be filed in a court of judicature having jurisdiction such as the High Court of Uganda.
  • The labour officer does not have jurisdiction to award general or punitive damages.

Court disposition

application dismissed

  • The application is hereby dismissed.
  • Civil Suit No. 47 of 2021 shall proceed on its merit.
  • Costs of this application be in the cause.

Source and reliance status

HC: Civil Division (Uganda)

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Source document

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Judgment text

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Source document

HC: Civil Division (Uganda)

Judgment

[2023] UGHCCD 418

THE REPUBLIC OF UGANDA IN THE HIGH COURT OF UGANDA AT KAMPALA (CIVIL DIVISION)

MISC. APPLICATION NO. 652 OF 2021

(ARISING FROM CIVIL SUIT NO. 47 OF 2021)

CAVENDISH UNIVERSITY UGANDA LTD =============== APPLICANT

VERSUS

JIMMY DANNY AGOLEI =========================== RESPONDENT

BEFORE: HON. JUSTICE EMMANUEL BAGUMA RULING

Background.

The Respondent a former employee of the Applicant was allegedly terminate and upon termination he filed Civil Suit No. 47 of 2021 for unlawful termination and damages.

Counsel for the Applicant/Defendant filed this application to stuck out the main suit for want of jurisdiction.

The application.

This is an application by notice of motion under section 33 of the Judicature Act, section 93 of the Employment Act, order 7 rule 11 of the CPR and order 52 rule 1, 2 and 3 of the CPR seeking for orders that;-

1. HCCS NO. 47 of 2021 be struck out for want of jurisdiction.

2. Costs of this Application be provided for.

The application is supported by the affidavit of David Mutabanura the executive director of the applicant whose details are on record but briefly states that;-

- 1. The Respondent was employed by the applicant as a lecturer till termination of his employment. - 2. Following termination of his employment he filed a suit in this court seeking damages for purported termination of his employment. - 3. I have been advised by my advocates that this is an employment matter which ought to be filed with the Labour Officer who should have referred the matter to industrial court where necessary. - 4. This court has no jurisdiction to try an employment matter and the same should be dismissed.

In reply, the Respondent opposed the application in an affidavit in reply deponed by Agolei Jimmy DanyDanniel the Respondent whose details are on record but briefly states that; -

- 1. I filled civil suit No. 47 of 2021 against the applicant for breach of contract of service and sought general, specific and punitive damages. - 2. I have been advised by my lawyers that this court is empowered by the constitution and the judicature act to handle such matters and section 93 of the Employment Act did not oust the unlimited original jurisdiction of this court. - 3. The termination letter was just emailed to me 8months later from the time it was dated and I am informed by my lawyers that by then I was out of time to seek redress in the labour office. - 4. The labour officer has no power to determine whether there was breach of contract of service and also cannot award general, Special and punitive damages which I seek from this court.

Representation.

At the hearing of this application, Mr. Isaac Walukagga together with Gulam Hussein of MMAKS Advocates represented the applicant while Mr. Mooli Albert Sibuta of Waluku Mooli & Co. Advocates represented the Respondent.

At the hearing both counsel agreed to file written submission and their details are on record.

Submissions for counsel for the Applicant.

Counsel for the applicant submitted that section 93 (2) (b) of the employment Act 2006 gives the labour officer jurisdiction to hear and determine by mediation or conciliation any dispute that relates to breach of a contract of service and other rights granted under this act.

Counsel referred to the case of Former employees of G4S Security Services Uganda Ltd Vs G4S Security Services Uganda Ltd SCCA No. 18 of 2010 where court held that; -

*"clearly, the above provision intended to oust jurisdiction of the ordinary civil courts in Uganda by ensuring that employment matters are only handled by the labour officers and the Industrial Court".*

Counsel submitted that the applicant's claim as stated in the plaint is for unlawful breach of contract of service by the defendant which falls squares within the ambit of section 93 of the Employment act and this court has no jurisdiction to try such a matter.

Submissions by Counsel for the Respondent.

Counsel for the Respondent submitted that the Respondent filed Civil Suit No. 47 of 2021 against the applicant for special damages, general damages, punitive damages, interest and costs of the suit and the cause of action being unlawful breach of contract of service by the Applicant. That this court has jurisdiction to try this matter and section 93 of the employment act is not applicable to this matter.

Counsel referred to the case of Wanzusi Samuel Vs Kakira Sugar Ltd HCCS No. 202 of 2015 where court held that; -

"The High court and the Industrial Court have co-current jurisdiction since appeals from both courts lie to the court of Appeal".

Counsel also referred to the case of Eng. John Eric Mugyenzi Vs Uganda Electricity Generation Co. Ltd CACA No. 167 of 2018 and submitted that the issues raised in the main suit go beyond the scope of the employment act and hence the provision of section 93 of the act do not apply.

Analysis of Court.

In the case of Eng. John Eric Mugyenzi Vs Uganda Electricity Generation Co. Ltd CACA No. 167 of 2018 where court held among others that; -

*"a labour dispute can be filed in a court of judicature having jurisdiction such as high court of Uganda*

*Court further stated that the labour officer from the foregoing does not have jurisdiction to award general or punitive damages…….."*

In the instant case, the Respondent/plaintiff in his plaint seeks among others for general damages which cannot be granted by the labour officer, therefore this suit is properly before this court and shall proceed on its own merit.

I find that this application lacks merit.

Conclusion.

In the final analysis, this Application fails with the following orders;

- 1. The application is hereby dismissed. - 2. Let Civil Suit No. 47 of 2021 proceed on its merit. - 3. Costs of this application be in the cause.

DATED, signed, sealed and delivered by email at Kampala this 28th day of March 2023.

Emmanuel Baguma

Judge

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Former employees of G4S Security Services Uganda Ltd v G4S Security Services Uganda Ltd SCCA No. 18 of 2010

Case cited

Wanzusi Samuel v Kakira Sugar Ltd HCCS No. 202 of 2015

Case cited

Eng. John Eric Mugyenzi v Uganda Electricity Generation Co. Ltd CACA No. 167 of 2018

Case cited

Section 33 of the Judicature Act

Legislation

Legislation referenced in the available case record.

Section 93 of the Employment Act

Legislation

Legislation referenced in the available case record.

Order 7 rule 11 of the Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

Order 52 rule 1, 2 and 3 of the Civil Procedure Rules

Legislation

Legislation referenced in the available case record.

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