The Industrial Court has given two weeks to Shoprite Supermarket to settle out of court a case in which its 45 former staff are demanding Shs5.4b for wrongful dismissal.
Justice Ruhinda Asaph Ntengye on Monday directed that the two parties should hold discussions over the matter before the matter comes for hearing on October 26.
Forty-five former workers of Shoprite sued the company, which has since ceased operations in Uganda, for wrongful termination of their contracts.
On Monday, the matter came up for hearing before Justice Ntengye but Shoprite’s lawyers were not present in court.
The former workers 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.
However, in defence, 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.