Court orders coffee firm to pay sh167m for unfair dismissal
Court records show that Kaddu joined Ibero Uganda Limited as a senior accountant on October 1, 2009, and rose through the ranks to become Head of Finance and Accounting on August 25, 2020.
Ibero Uganda Limited denied allegations that Kaddu was summarily dismissed, arguing that her employment was lawfully terminated with notice in accordance with her contract.
KAMPALA - The Industrial Court has ordered Ibero Uganda Limited to compensate its former head of finance and accounting, Polly Kapapa Kaddu, with sh167,183,750 after finding that she was unlawfully dismissed.
Justice Anthony Wabwire Musana awarded Kaddu general damages, aggravated damages and severance pay arising from the unfair termination of her employment.
“This court finds that the respondent’s (Ibero Uganda Limited) unilateral abandonment of the mutual separation negotiation in favour of a disguised termination by notice constituted an unfair and unlawful termination. It was a disguised dismissal and an unfair labour practice.”
Court records show that Kaddu joined Ibero Uganda Limited as a senior accountant on October 1, 2009, and rose through the ranks to become Head of Finance and Accounting on August 25, 2020.
In a judgment delivered on June 5, 2026, the court further ordered that interest on the severance pay shall accrue at a rate of 10% per annum from June 24, 2023, the date of cessation of employment, until payment in full.
Interest on the awards for general and aggravated damages shall accrue at a rate of 15% per annum from the date of the award until full payment. The respondent was also ordered to bear the costs of the claim.
Ibero Uganda Limited denied allegations that Kaddu was summarily dismissed, arguing that her employment was lawfully terminated with notice in accordance with her contract.
The company maintained that a meeting held on March 20, 2023, was intended to discuss a draft mutual separation agreement, which Kaddu rejected, prompting the issuance of a formal three-month termination notice.
However, the court was not persuaded by the company’s argument and found that the circumstances surrounding Kaddu’s exit did not support its position.