ALP Legal Alert

High Court holds that the Registrar of Companies, while discharging his or her quasi-judicial functions, is immune from any civil or criminal suits brought either against individual registrars or the institution.

Courts and arbitration tribunals address different objections to arbitration agreements: Vantage Mezzanine Fund II Partnership v. Simba Properties Investments Co Ltd & Another [2021] UGCommC

High Court underscores a difference between incorporation of a company and its registration for purposes of foreign presence, and holds that a foreign company need not register in Uganda unless it has the intention of establishing a place of business in Uganda.

High Court holds obiter dictum—in an application for leave to defend a summary suit—that, for purposes of vitiating contractual obligations, the economic impact of COVID-19 shall depend on the provisions of the contract and the unique circumstances of each case.

Court of Appeal adopts the doctrine of legitimate expectation—a doctrine with roots in public law—in Uganda’s employment law and determines that an employer is required to provide a reason for termination of employment that goes against the legitimate expectation of an employee.

No Right of Appeal to Highest Court in Employment Matters: DFCU Bank Limited v Donna Kamuli, Civil Application No 29/2019 Background In its application by

Court of Appeal affirms the misconduct of an employee as a basis for summary dismissal must be verifiable and not just mere allegations. It explains that gross misconduct must be proved by a disciplinary hearing that is procedurally and substantively fair and is akin to a judicial hearing.

Court of Appeal affirms need to give literal and ordinary meaning in interpreting terms of contracts of employment. Further, it upholds the necessity for fairness in the proceedings of disciplinary committees while noting they are not expected to adopt strict rules of evidence applied in courts of law.

Industrial Court finds informal discussions about an employee’s performance not to amount to a disciplinary hearing and called for minimum standards of natural justice in disciplinary procedure. The Court held a termination based on such discussions to amount to unlawful dismissal and awarded Shillings One Billion in damages.

Court of Appeal affirms requirements of notice and reasons in termination of an employment relationship and that an employee who rejects payment in lieu of notice is entitled to a hearing. Further, it upholds salary loan arrears as deductible from special damages and terminal benefits.