By Mukembo Wilfred
Uganda Airlines has been dealt a heavy legal setback after the Industrial Court ordered it to pay its former Chief Executive Officer, Cornwell Muleya, a total of Shs 455 million in compensation for what was ruled an unlawful and unfair dismissal.
In a strongly worded judgment, Justice Anthony Wabwire Musana faulted the national carrier for mishandling Muleya’s termination, describing the process as a “disguised unlawful dismissal” that blatantly violated his right to a fair hearing.
Court documents show that Muleya’s troubles began in April 2021, when the airline asked him to take a three-month leave of absence. Barely a month later, on May 21, 2021, he was suspended for another three months—an action that was further extended in August, effectively keeping him in suspension for six months.
“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 63EA. That renders his suspension unlawful under the Employment Act,” Justice Wabwire ruled.
The judge further found that Muleya was never accorded a genuine opportunity to defend himself against the allegations that led to his firing. While the airline maintained that he had been given a fair hearing, the court found that claim “unsupported by evidence.”
“The respondent hypothesizes that the claimant deliberately refused to attend the hearing. We do not find this acceptable. The evidence shows that between April 2021 and February 2022—when he received his termination letter—over six letters were exchanged between the two sides,” Justice Wabwire stated.
He noted that the only meeting Muleya was not informed about was the oral hearing on November 11, 2021—ironically, the same meeting that recommended his dismissal.
The ruling paints a damning picture of a state-owned airline grappling with internal leadership wrangles even as it strives to establish itself as a credible regional carrier.
“The respondent was unable to show that it respected the claimant’s right to a fair oral hearing,” the judge concluded. “We therefore find his dismissal to be both procedurally and substantively unfair and unlawful.”
Consequently, the court ordered Uganda Airlines to pay Muleya: Shs 252 million in severance pay, Shs 77 million as four weeks’ net pay for denial of a hearing, Shs 126 million in general damages, and Shs 460,800 in unpaid gratuity.
