COURT | SHOPRITE | EMPLOYEES 

KAMPALA - The Chief Judge, Ruhinda Asaph Ntengye has directed that the former Shoprite managers pursue out of court settlement in sh5.4b case.

A total of 45 claimants sued Shoprite Checkers, Uganda Limited, in the Industrial Court, demanding sh5.4bn, over wrongful termination of their contracts of service.

Ntengye issued the directive Monday, in the presence of James Lyagoba, the lawyer representing the claimants. Shoprite lawyer did not turn up in court.

“The parties should settle the matter before October, 26, this year when the case resumes for hearing,” he advised.

The former Shoprite managers, who petitioned the Industrial Court in Ntinda, demanding sh5.4bn, over wrongful termination of their contracts of service listening to their lawyer James Lyagoba on October 11, 2021. (All Photos by Michael Odeng)

They contend that the unlawful termination of their employment has rendered them jobless, for which they seek payment of the money, in severance allowances, general damages and repatriation costs.

A severance package is pay and benefits that employees may be entitled to receive when a contract is abruptly terminated. Shoprite stopped its operations in Uganda and Madagascar, in August, this year.

The claimants led by Rashid Nyende, who have spent between 15 to 20 years with Shoprite, also want their contracts transferred to the new company to allow continuity of employment.

According to court documents, Shoprite sold 100% shares of its business stock and assets to Majid Al Futtaim, trading as Carrefour Supermarket Chain and ceased operations in Uganda.

The claimants contend that they were not involved in the transaction.

“Shoprite terminated the contracts of the claimants without giving them any remedy as protected by the Employment Laws of Uganda,” reads part of the plaint.

Shoprite says owing to the general decline in Uganda’s and other economies in Africa exacerbated by effects of the Covid-19 pandemic in the recent past, it experienced declining financial performance, affecting its business that led to losses the necessitated closure of business.

Shoprite asserts that it notified the gender ministry of the intended closure of its business and the likely effects on its employees.

The company maintains that it issued a notice of the intended sale to all its 394 employees in July 2021, explaining that it would result in termination of their contracts.