By Editorial,
The Court of Appeal has ruled that employers can terminate the contracts of their employees without giving any reason for doing so.
The court also ruled that when one’s employment contract is terminated without reason, there is no need for a hearing.
In a case between Nassanga Saphinah Kasule and Stanbic Bank, the court held that unless it was explicitly stated in the employment contract, the employer for as long as gives notice or pays the salary of three months in lieu of the notice, the termination stands.
It is therefore very clear…that the employer is not required to give reasons for termination of the employment contract under section 65(1)(a). Unless the employment contract states it, the unanimous decision written by Justice Christopher Gashirabake reads in part.
According to court records, Nassanga was employed by Stanbic Bank in 2001 however her contract was terminated in 2012 without stating any reasons. The Bank paid her 17 million Shillings for three months payment in lieu of the notice of termination which was issued one day to the date when it would take effect. Dissatisfied, she filed a case with the Industrial Court which found that she had been wrongfully dismissed. The Court awarded her 65 million Shillings for wrongful termination without reason and a hearing. The bank appealed this decision saying the law does not require them to give any reason for terminating the contract of their workers provided they give notice or pay three months salary in lieu of the notice. END
