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Sempebwa & 20 Ors v Attorney General (Labour Dispute Claim 225 of 2014) [2020] UGIC 50 (29 April 2020)
- Citation
- [2020] UGIC 50
- Status
- Judgment
- Jurisdiction
- Uganda
- Court
- Industrial Court of Uganda
- Panel
- Ruhinda-Ntengye, J, Tumusiime-Mugisha, J
- Case number
- Labour Dispute Claim 225 of 2014
- Language
- English
More details
- Court
- Industrial Court of Uganda
- Panel
- Ruhinda-Ntengye, J, Tumusiime-Mugisha, J
- Case number
- Labour Dispute Claim 225 of 2014
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the claimants were initially employed on permanent and pensionable terms by the Uganda Government Printer. Upon privatization and the creation of the Uganda Printing and Publishing Corporation (UPPC), their previous positions were abolished and they were required to enter into new contracts, indicating termination of their original employment. Under Section 10(1)(c) of the Pensions Act, abolition of office entitles an employee to pension. The court held that the respondent's failure to process the claimants' pension and terminal benefits constituted a breach of contract. The court also determined that ex parte proceedings were valid since the Attorney General had been duly served but failed to respond or appear. The claimants were awarded damages and interest, with costs, as the respondent was aware of the obligation to process the pension but failed to do so.
Court disposition
Claim allowed ex parte with damages, interest, and costs awarded to claimants.
Orders
- Respondent to pay each claimant 15,000,000 UGX in damages.
- Respondent to process and pay pension and terminal benefits to claimants as per the Pensions Act.
- Respondent to pay interest at 12% per annum on the damages from the date of award until payment in full.
- Respondent to pay costs of the suit to the claimants.
02
Material facts
Parties
Twaha Sempebwa & 20 Others
Claimant Counsel: __MISSING__Attorney General
Respondent Counsel: __MISSING__Amounts and remedies
- Damages Per Claimant: UGX 15,000,000
- Interest Rate Per Annum: PERCENT 12
03
Procedural history
Posture
Labour Dispute Claim / Exparte Final Award
04
Questions and positions
Legal issues
- 01
Whether the claimants were entitled to pension and terminal benefits upon abolition of their jobs due to privatization.
- 02
Whether ex parte proceedings could be validly conducted against the Attorney General without formal leave of court.
- 03
Whether failure to pay terminal benefits constituted breach of contract.
Party arguments
- Applicant
- The claimants argued that their employment with the Uganda Government Printer was terminated due to privatization, resulting in abolition of their jobs. They contended that they were entitled to pension and terminal benefits under the Pensions Act and their contracts, and that failure to pay these benefits constituted a breach of contract. They relied on communications from the Office of the President and the Ministry of Public Service confirming their permanent and pensionable status and the requirement for formal retirement processing.
- Respondent
- The respondent did not file a reply or attend proceedings despite being served. No arguments were presented on their behalf.
05
Court’s reasoning
Legal principles
- 01
Section 7, Government Proceedings Act; Rule 6, Government Proceedings (Civil Procedure) Rules; Attorney General v Ejulu John, Civil Application 64/2012
Ex parte proceedings may proceed against the Attorney General if the court is satisfied that service was effected and the Attorney General neglected or refused to appear, even without formal application for leave.
- 02
Section 10(1)(c), Pensions Act, Cap. 286
Employees whose jobs are abolished due to privatization and who were on permanent and pensionable terms are entitled to pension under the Pensions Act.
- 03
Contracts of service; Pensions Act, Cap. 286
Failure to process pension and terminal benefits as required under contract and statute constitutes breach of contract, entitling the affected employees to damages.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the claimants were initially employed on permanent and pensionable terms by the Uganda Government Printer. Upon privatization and the creation of the Uganda Printing and Publishing Corporation (UPPC), their previous positions were abolished and they were required to enter into new contracts, indicating termination of their original employment. Under Section 10(1)(c) of the Pensions Act, abolition of office entitles an employee to pension. The court held that the respondent's failure to process the claimants' pension and terminal benefits constituted a breach of contract. The court also determined that ex parte proceedings were valid since the Attorney General had been duly served but failed to respond or appear. The claimants were awarded damages and interest, with costs, as the respondent was aware of the obligation to process the pension but failed to do so.
Obiter and limits
- The court considered the proposed damages of 50,000,000/= per claimant excessive given that pension was already awarded, and instead awarded 15,000,000/= per claimant as sufficient atonement.
- Given the inflationary nature of the currency and potential delays in realizing the benefits, interest at 12% per annum from the date of award until payment in full was deemed appropriate.
Court disposition
Claim allowed ex parte with damages, interest, and costs awarded to claimants.
- Respondent to pay each claimant 15,000,000 UGX in damages.
- Respondent to process and pay pension and terminal benefits to claimants as per the Pensions Act.
- Respondent to pay interest at 12% per annum on the damages from the date of award until payment in full.
- Respondent to pay costs of the suit to the claimants.
Source and reliance status
Industrial Court of Uganda
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Industrial Court of Uganda
Judgment
THE REPUBLIC OF UGANDA IN THE INDUSTRIAL COURT OF UGANDA AT KAMPALA LABOUR DISPUTE CLAIM NO. 225 OF 2014 (ARISING FROM HCT-CS-297 OF 2013)
TWAHA SEMPEBWA & <sup>20</sup> OTHERS CLAIMANT
VS.
ATTORNEY GENERAL RESPONDENT
BEFORE:
- 1. Hon. Chief Judge Ruhinda Asaph Ntengye - 2. Hon. Lady Justice Lillian Linda Tumusiime Mugisha
PANELISTS
- 1. Ms. Adrine Namara - 2. Mr. Michael Matovu - 3. Ms. Susan Nabirye
AWARD
The gist of this claim is that the claimants having been employees of the Uganda government Printer, and the Uganda government Printer having become <sup>a</sup> private corporation effective July 1993, the claimants' jobs were abolished as a result of privatization and therefore they were entitled to retirement/terminal benefits on abolition of their jobs. According to the claim, failure by the e respondent to pay terminal benefits constituted breach of contract of the respective contracts of service.
This claim was originally filed in the High Court as Civil Suit No. 297/2013 on 26/09//2013 in the civil division of the High Court. The respondent filed <sup>a</sup> defence in the High court on 11/10/2013.
Subsequently in accordance with the rules of this court the claimants filed <sup>a</sup> memorandum of claim in this court on 13/05/2015 to which the respondent did not file <sup>a</sup> reply. Various hearing notices were issued by the court but for one reason or another the respondent could not be available either to file <sup>a</sup> memorandum in reply or to attend the court proceedings until 29/11/2019 when this court was fully satisfied that indeed the attorney General's office had been served and on the application of counsel for the claimants the court agreed to proceed exparte.
On perusal of Section 7 of the Government Proceedings Act and rule 6 of the Government Proceedings (Civil Procedure Rules) a question is raised as to whether exparte proceedings could be against the Attorney General without formal leave of court by <sup>a</sup> formal application.
Section 7 of the Government Proceedings Act provides
"Civil Proceedings in the high court
(1) Subject to this Act, all Civil Proceedings by or against the Government in the High court shall be instituted and proceeded with in accordance with rules of court and not otherwise.
Rule 6 of the Government Proceedings (Civil Procedure) Rules provides;
"6 Judgment in default.
Judgment shall not be entered, and no order shall be, against the Government in default of appearance or pleading under any provision of the principal rules without leave of the court, and any application for such leave shall be made by summons served days before the return day.
In dealing with the above dichotomy Hon. Lady Justice H, Wolayo in the case of ATTORNEY GENERAL VS EJULU JOHN, Civil Application 64/2012 (from civil suit 13/2009, Soroti circuit) held "with regard to counsel for the applicant's submission that there was non-compliance with rule 6 of the Government Proceedings rules, rule 3 of the same rules extends the application of the CPR to proceedings involving government. The same rules do not exempt such proceedings from the operation of order 9".
Rule 3 of the Government proceedings (Civil Procedure) Rules provides
"3 Application of Civil Procedure Rules subject to the government proceedings Act and these rules-
- (a) The principal rules shall, so far as may be, apply to all civil proceedings by or against government; and - (b) Civil Proceedings by or against the government shall, so far as may be, take the same form as civil proceedings between private persons, and shall, if no special form is applicable, take the form of a suit instituted by a plaint".
From the above section of the law and the decision of Attorney General Vs Ejulu John above mentioned, we take the position that although <sup>a</sup> party to <sup>a</sup> suit against the Attorney General may under rule 6 of the Government Proceedings (Civil Procedure) rules apply by Chamber summons for leave to proceed exparte against Attorney General, failure to so apply may not invalidate exparte proceedings as long as the court is satisfied that the Attorney General was served but neglected or refused to appear in court to defend the same.
Since in the instant case this court was satisfied that the Attorney General was served before allowing exparte proceedings, we will go ahead to evaluate the evidence adduced in the absence of the Attorney General.
Evidence was adduced from one Twaha Sempebwa on behalf of all the others by virtue of <sup>a</sup> power of Attorney duly registered with the Uganda Registration
3 <sup>|</sup> p a g e
services Bureau. By <sup>a</sup> written witness statement the said Twaha informed court that he and the other claimants were initially employees of the Uganda Government Printer and due to privatization in July 1993 they were offered new contracts with the new privatized organization without paying them their benefits under the previous service contracts.
On perusal of the various contracts of service while being employed by the Uganda Government printer, we find that the appointments were "subject to the appropriate Articles of constitution of the Republic of Uganda, and the public service Act, and regulations made thereunder, the service standing orders and administrative instructions made from time to time and the Pensions Act, Chapter 281"
There is communication from office of the President under which the claimants were originally employed in the service of the Uganda Government Printer that they were employed under permanent and pensionable terms before they transferred their services to the Uganda Printing and Publishing Corporation (UPPC). This communication details each of the claimant's job tittle, confirmation date and transfer date to the UPPC. The communication is dated 23/11/2017 and addressed to the Permanent Secretary Ministry of public service for purposes of formal retirement and accessibility to pension of the claimants. Earlier on, communication dated 30/6/2017 was from the Managing Director addressed to the Secretary, office of the president detailing the same subject matter.
We are in agreement with the submissions of counsel for the claimants that by virtue of the coming into force of the UPPC Act, Cap. 330 the claimants employment with the Government Printer was terminated. This is especially so when they were required to enter into new contracts with the UPPC.
Section 10 of the Pensions Act, Chapter 286 provides for circumstances under which pension may be granted. On careful perusal of the whole section, it is our opinion that one of the circumstances mentioned thereunder is when the office is abolished. On perusal of some of the contracts between some of the claimants and UPPC we find that there were new contracts indicating that the claimants had to serve probationary periods before being confirmed which in our view indicated
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that their jobs earlier occupied as testified by the first claimant in his written witness statement were abolished.
Consequently we are in agreement with counsel for the claimant that under section 10(l)(c) of the Pensions Act, the jobs of the claimants having been abolished, they were entitled to pension.
The claimants having been employed subject to the Pension Act and therefore having been entitled to pension, the failure of the respondent to process their pension was in breach of their respective contracts and therefore they were entitled to damages. We consider the proposal of 50,000,000/= proposed by counsel very high given that the respondent has already been condemned to paying pension. Instead we consider 15,000,000/= for each of the claimants sufficient atonement in damages.
Given the inflationary nature of the currency and the time it may take for the claimants to realize the benefits under this Award, the respondent shall pay 12% interest per year from the date of the Award till payment in full. Given that the respondent, though the Ministry of Public Service was aware of the need to process pension as per the letters from president's office and from UPPC, the claim is allowed with costs to the claimants.
BEFORE:
1. Hon. Chief Judge Ruhinda Asaph Ntengye ....*l.xr:*
2. Hon. Lady Justice Lillian Linda Tumusiime Mugisha
PANELISTS
- 1. Ms. Adrine Namara - 2. Mr. Michael Matovu - 3. Ms. Susan Nabirye <sup>L</sup>
Dated: 29/04/2020
<sup>5</sup> <sup>|</sup> Page
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