Ex-worker awarded sh9.9m after court finds dismissal over missing pens unlawful
The court ordered Picfare to pay Sylvester Niyibaho sh2.4m as severance allowance and sh7.5m in general damages for the unlawful dismissal.
Ex-worker awarded sh9.9m after court finds dismissal over missing pens unlawful
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The Industrial Court has awarded a former Picfare Company Limited employee sh9.9m after finding that he was unlawfully dismissed following allegations that he caused the loss of cartons of pens worth sh5.2m.
The court ordered Picfare to pay Sylvester Niyibaho sh2.4m as severance allowance and sh7.5m in general damages for the unlawful dismissal.
The court also awarded him the costs of the claim and directed that interest at 8% per annum would accrue on the severance allowance from the date of dismissal, while interest on the general damages would run from the date of the award until payment in full.
The decision was delivered by Industrial Court head judge Justice Linda Lillian Tumusiime Mugisha, sitting with panelists Rose Gidongo, Beatrice Aciro Okeny and Charles Wacha Angulo.
Niyibaho, who worked as a stores assistant at Picfare from August 23, 2013, sued the company, challenging his dismissal in September 2017 after 14 cartons of pens belonging to one of the company's clients went missing from the stores.
He told the court that he was arrested on September 21, 2017, and detained at Jinja Road Police Station for three days over the alleged theft.
After he was released on police bond and returned to work, he said he was informed by the supply chain manager that the company intended to terminate his employment.
Niyibaho argued that his dismissal was unfair because he was not given an opportunity to defend himself before the decision was made.
He further told the court that criminal charges of conspiracy to commit theft against him were later dismissed for want of prosecution on August 31, 2018.
However, Picfare defended the dismissal, arguing that the employee was negligent and failed to safeguard company property, leading to the loss of pens worth sh5.25m.
The company told the court that the matter was reported to police as part of its corporate procedures and that Niyibaho had previously received warnings over negligence and poor performance.
Picfare argued that he was paid sh780,500 as full and final settlement, covering his salary, leave pay and notice.
In its ruling, the court held that although an employer has the right to dismiss an employee for misconduct, it must follow the law by giving the employee reasons for the intended dismissal and an opportunity to respond.
The court found that the dismissal was fault-based because the company accused Niyibaho of negligence that allegedly caused the loss of the pens.
"This could not be categorised as termination under the Employment Act, but rather dismissal," the court held, adding that the company was required to prove the allegations and give the employee a chance to defend himself.
The court further observed that although Picfare relied on previous warnings issued to Niyibaho, the warning letter produced in court had been issued a year before the theft incident and was not sufficient to prove responsibility for the missing goods.
The judges ruled that Picfare failed to prove that it conducted an investigation or disciplinary hearing before dismissing the employee.
“The respondent had the responsibility of substantiating the allegations of negligence against the claimant by notifying him about the allegations and hearing his representations before dismissing him, but this was not done,” the court held.
The court also noted that Niyibaho had suffered mental anguish after being arrested and detained over allegations that were not proven.
It therefore awarded him sh7.5m in general damages.
The court dismissed his prayer for punitive damages, holding that the award of general damages was sufficient compensation.