Umeme gets green light to challenge Shs45m labour award

The Industrial Court has granted Umeme Limited leave to appeal a decision by a Kampala Capital City Authority (KCCA) labour officer ordering the power distributor to pay Shs44.9 million to a former employee over alleged unlawful dismissal.

The dispute stems from an April 8, 2024 ruling by KCCA Labour Officer Irene Nabbumba, who awarded Abubaker Mubazi Shs44,939,377 in compensation. The award comprised damages for unlawful dismissal, payment in lieu of notice and severance pay.

Umeme, through its legal officer, Rogers Mugisha, challenged the decision, arguing that the labour officer failed to properly evaluate the evidence before reaching the conclusion that Mubazi had been unfairly dismissed and denied a fair disciplinary hearing.

Mubazi opposed the application, maintaining that the labour officer’s findings were based solely on questions of law, which do not require leave to appeal under the Employment Act. He argued that Umeme’s application was therefore misconceived and an abuse of court process.

However, in a ruling delivered on July 3, 2026, Industrial Court Head Judge Linda Lillian Tumusiime Mugisha held that the intended appeal raised both legal and factual issues, making leave to appeal necessary under Section 93 of the Employment Act.

The court explained that appeals from labour officers proceed as of right only where they involve pure questions of law. Where the appeal raises questions of fact, or a combination of law and fact, an appellant must first obtain permission from the Industrial Court.

Justice Mugisha found that Umeme’s proposed grounds of appeal—including whether Mubazi was accorded a fair hearing and whether the dismissal was justified—involved mixed questions of law and fact that warranted appellate consideration.

The court consequently granted Umeme leave to appeal and directed the company to file its substantive appeal within 14 days of the ruling.