Ex-Uganda Airlines chief Muleya awarded sh455m

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The Industrial Court has ordered Uganda National Airlines to pay its former chief executive officer, Cornwell Muleya, shillings 455 million in compensation for wrongfully terminating him from his job.

In a judgment dated October 24, 2025, Anthony Wabwire Musana ruled that Muleya was unfairly and unlawfully suspended and dismissed from employment by Uganda National Airlines.

The court heard that Muleya had been in employment with Uganda National Airlines for two years when he was dismissed from employment. During that time, he had spent about 11 months on suspension or forced leave.

The judge observed that, considering the underlying circumstances of disciplinary proceedings before the claimant’s termination with notice, it was a disguised unlawful dismissal.

“Because Uganda National Airlines was unable to show that it respected the claimant’s right to a fair oral hearing at which he should defend himself against the allegations made against him, I find his dismissal to be both procedurally and substantively unfair and unlawful,” Musana ruled.

The judge said a suspension lasting more than four weeks without disciplinary proceedings is considered an unfair labour practice and results in a declaration of the suspension as unlawful.

However, by the date of commencement of the disciplinary hearing, the claimant had been on suspension for six months, contrary to the clear provisions of Section 63 of the Employment Act, rendering his suspension unlawful.

The judge also said failure to serve notice of the oral hearing to the claimant was a procedural misstep resulting in procedural unfairness.

Muwema & Co Advocates & Solicitors represented Muleya

Background

On February 19, 2020, the claimant was appointed chief executive officer of the Uganda National Airlines, the national flag carrier, on a 12-month renewable contract. Before the appointment, he had been Uganda National Airlines’ technical advisor.

On March 1, 2021, his contract was extended for eighteen months. However, on April 29, 2021, the Uganda National Airlines chairperson issued the claimant with a notice of leave of absence following a communication that the Minister of Works and Transport had raised allegations of mismanagement of the Uganda National Airlines.

On May 21, 2021, Muleya was suspended for three months, pending investigations. The suspension was extended for another three months, and he was invited to a disciplinary hearing on allegations of various acts of mismanagement.

He filed a response to the allegations, and on February 15, 2022, he was issued a termination notice.

This prompted Muleya to petition court, challenging his termination and suspension as unlawful, asserting that he was denied a fair hearing, subjected to an illegal suspension without proper investigation, and suffered reputational damage. 

He sought declarations that his employment termination was unfair and unlawful, which were granted by the court.