The Industrial Court has ordered Absa Bank Uganda Limited to pay former employee Eddy Muleme Shs14 million after ruling that his dismissal was procedurally unfair.
Muleme, an Information Technology professional, had worked with the bank since July 2007 and rose to the position of Data Centre and Networks Engineer in March 2018 before his employment was terminated later that year.
The dispute arose from a 2018 office relocation project in which Absa was moving its operations from Hannington Road to Kampala Road. The project involved transferring key infrastructure, including network systems, fibre cables, power installations, and workstations.
Court heard that during the relocation exercise, electrical sockets and other materials were removed from the old premises and reused at the new office as a cost-saving measure.
However, disagreements later emerged over whether the removal and reuse of the installations had proper approval and whether the responsibility fell within Muleme’s duties.
On June 20, 2018, Muleme was suspended over allegations of removing installations without authorization. He later appeared before a disciplinary hearing on June 28, 2018, before being dismissed on July 23, 2018.
His appeal against the dismissal was later rejected by the bank’s appellate panel.
Muleme challenged the decision, arguing that his dismissal was unfair and unlawful. He claimed that he faced disciplinary action over allegations different from those contained in his suspension letter and that his role in reducing project costs was not considered.
Absa Bank, however, maintained that the dismissal was lawful, arguing that Muleme acted outside his mandate and removed installations without approval. The bank said he was given a fair hearing, including being informed of the allegations, participating in investigations, attending a disciplinary hearing, and filing an appeal.
In his ruling, Industrial Court Judge Anthony Wabwire Musana found that although Absa had a valid reason to take disciplinary action, the process used to dismiss Muleme did not meet the required legal standards.
The court awarded Muleme compensation equivalent to four weeks’ salary amounting to Shs4.7 million and an additional two months’ salary worth Shs9.4 million, bringing the total award to Shs14 million.
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