Absa Bank Uganda Limited has suffered a setback after the Industrial Court ordered the financial institution to pay Shs14 million to a former IT employee who was found to have been unfairly dismissed.
The court ruled in favour of Eddy Muleme, an Information Technology specialist who lost his job in 2018, after finding that although the bank had a reason to discipline him, the process leading to his termination did not comply with required employment procedures.
Muleme had served at the bank since July 2007, gradually advancing through different roles before becoming a Data Centre and Networks Engineer in March 2018. His employment was terminated later that year following a dispute linked to an office relocation project.
The disagreement emerged during Absa’s move from its Hannington Road offices to Kampala Road, a project that required the transfer of major infrastructure, including network equipment, fibre systems, power connections and other workplace installations.
As part of efforts to reduce costs, some electrical fittings and related materials were removed from the former premises and reused at the new location. However, questions later arose over whether the removal had been properly approved and whether Muleme had authority to oversee the activity.
The bank suspended Muleme on June 20, 2018, accusing him of removing installations without approval. He later faced a disciplinary hearing on June 28 and was dismissed on July 23 after the bank upheld the allegations. His appeal against the decision was later rejected.
Muleme challenged the dismissal, arguing that he was subjected to an unfair process because the accusations during the disciplinary proceedings differed from those initially communicated in his suspension. He also argued that his efforts to help the bank save costs during the relocation were overlooked.
Although Absa maintained that the dismissal was justified and that Muleme had been given a fair opportunity to defend himself, Justice Anthony Wabwire Musana ruled that the bank’s procedure was flawed. The court awarded Muleme Shs4.7 million for four weeks’ pay and Shs9.4 million representing two months’ salary, bringing the total compensation to Shs14 million.
