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Can You Sue a Ghost? Corporate Personality, Labour Law, and The Case of Oringo v Dede Farming Tractors (U) Ltd [2025] UGIC 47

🔹 Introduction In the recent decision of Oringo John v Dede Farming Tractors (U) Ltd [2025] UGIC 47, the Industrial Court of Uganda was faced with an unusual, yet increasingly relevant, legal question in employment law: can a person enforce a labour claim against an employer that disputes its own existence? At the heart of this case were two compelling legal questions; the doctrine of corporate personality and the validity of a contract of employment. The judgment unpacks the tension between classical company law and the evolving principles of labour law. This post delves into the facts, the key legal arguments, and the implications of the Court’s decision for practitioners, employers, and employees.   🔹 Background to the Case Mr. Oringo John was hired as a Workshop Manager by an entity styled “Dede Farming Tractors (U) Ltd” on 12 December 2019 at a salary of UGX 2,000,000 per month. However, from September 2020, his salary payments ceased. He lodged a complaint with ...

WORKPLACE FAIRNESS: THE LEGAL REQUIREMENT FOR CONSULTATION OF EMPLOYEES AND ADVANCE NOTICE PRIOR TO RESTRUCTURING.

  Introduction Employment restructuring is a crucial exercise that allows institutions to align their workforce with operational requirements. However, when not conducted transparently, it may give rise to claims of unfair termination. This article reviews the recent Industrial Court decision of Namayanja & Others v Cavendish University (Labour Dispute Ref 97 of 2019) in which the Claimants challenged the legitimacy of their termination, asserting that the Respondent unlawfully dismissed them under the guise of restructuring. Their argument rests on the principles of legitimate expectation, procedural fairness, and compliance with statutory labour requirements. Case Background. In November 2016, the Claimants entered into two-year employment contracts with the Respondent. However, their tenure was abruptly cut short when, on June 16, 2017, their employment was terminated under the guise of a restructuring process purportedly aligned with National Council for Higher Educat...

TAXATION OF EMPLOYEES VS. INDEPENDENT CONTRACTORS: THE REQUIREMENT FOR A FIXED AND ASCERTAINABLE REMUNERATION (A REVIEW OF INFETIOUS DISEASE INSTITUTE V URA (APPLICATION NO. 15 OF 2019) RULING.)

a.             Introduction Employers have , in a move to lessen the tax burden, characterized some of their workers as independent contractors . This characterization is premised on the understanding that whilst Section 118 of the Income Tax Act Cap 340 imposes a fixed 6% withholding tax for independent contractors, it imposes various rates of PAYE for employees that earn above Ugx. 235,000, depending on the income bracket. The implication is that employers remit more money to URA through PAYE contributions than if it were Independent Contractors. In a recent decision by the Tax Appeals Tribunal, it was ruled that whilst an employer might characterize certain persons as independent contractors, the payment made to such persons may entitle URA to treat them as employees thus culminating in the employer making the necessary PAYE contributions. This blog reviews the case of Infectious Disease Institute v Uganda Revenue Authority in which t...

THE INDUSTRIAL COURT OF UGANDA NOT BOUND BY THE RULES OF EVIDENCE IN CIVIL PROCEEDINGS: A CASE REVIEW OF YUSUF BALIRUNO V CEENTRAL BROADCASTING SERVICES (LABOUR DISPUTE REFRENCE NO. 92 OF 2020)

Background As a general rule of evidence, documents must be proved by primary evidence. Primary evidence means the original document itself produced in court. However, Section 64 of the Evidence Act, Cap. 6 l ays out exceptions in which documents may be proved by secondary evidence including; when the original copy is or appears to be in the possession of the person against whom the document is sought to be proved, when the existence, condition, or contents of the original have been proved to be admitted on writing by the person against whom, when the original has been destroyed or lost, or is in the possession   or power of any person not legally bound to produce it, when the original is a public document, when the original is of such a nature that it cannot easily be moved, when the original is a  document  of which a certified copy is permitted by the evidence Act, or by any other law in force in Uganda, to be given in  evidence , w hen the originals consist ...

CONTINUED PAYMENT OF SALARY AFTER EXPIRY OF CONTRACT TERM NOT PROOF OF SUBSISTENCE/RENEWAL OF A FIXED TERM CONTRACT: A CASE REVIEW OF ELIZABETH NABATANZI LUGUDDE KATWE V ATTORNEY GENERAL (CIVIL APPEAL NO. 53 OF 2013)

 Introduction A fixed term contract is an agreement between an employer and an employee that specifies the duration and terms of the employment, usually for a specific project, task, or period . At the end of the contract period, the contract automatically terminates. According to Section 65(1) (b) of the Employment Act,  a fixed term contract automatically terminates with the expiry of the specified period or the completion of the specified task unless it is renewed within a period of one week  from the date of expiry on the same terms or terms not less favourable .   The above provision of the law connotes an express communication in the event that a fixed term contract is to be renewed. This blog sheds light on the legal position that continued earning of a salary after the date of expiry of a contract does not imply continuity or renewal of the contract.   Brief Facts The Appellant was appointed as a Special Presidential Assistant by a letter dated 19 th ...

THE LAW ON CONTINUOUS SERVICE OF EMPLOYMENT IN UGANDA: CASE REVIEW OF GEORGE JOHNSON OJOK & 87 OTHERS VS. TORRES ADVANCED ENTERPRISES SOLUTIONS LLC (LABOUR DISPUTE REFERENCE NO. 024 OF 2015)

  THE LAW ON CONTINUOUS SERVICE OF EMPLOYMENT  IN UGANDA : CASE REVIEW OF GEORGE JOHNSON OJOK & 87 OTHERS VS. TORRES ADVANCED ENTERPRISES SOLUTIONS LLC (LABOUR DISPUTE REFERENCE NO. 024 OF 2015)   Introduction The concept of continuous service in employment law is defined under Section 83 of the Employment Act 2006 as an employee’s period of uninterrupted service with the same employer. This includes c onsecutive periods of employment with two successive employers where the successor has taken over the   business  of the former  employer  as receiver, liquidator, personal representative, or heir, or upon transfer of the whole or part of the  business. It also includes a ny   week  or part of a  week  in which an  employee  is employed for sixteen hours or more . Continuity of service has a number of benefits attached to it such as severance allowance, entitlement to wages when absent from work for good cause, annu...