[2006] UGCA 44
The Court held that where an employee's salary and allowances have been consolidated into a single figure, the computation of pension and gratuity must be based on that consolidated amount. The appellant, having agreed to consolidate the respondent's emoluments, could not subsequently attempt to dissect the package...
Source-derived case information.
- Citation
- [2006] UGCA 44
- Parties
- Appellant: Uganda Electricity Board; Respondent: Kiganda Peter
- Court
- Court of Appeal of Uganda
- Jurisdiction
- Uganda
- Case Number
- Civil Appeal No. 46 of 2005
- Procedural Posture
- Civil Appeal / Judgment
- Outcome
- appeal dismissed
- Legal Topics
- Termination of Employment, Pension Entitlement, Calculation of Gratuity, Consolidated Salary, Employee Benefits
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Uganda Electricity Board
Appellant
Kiganda Peter
Respondent
Procedural Posture
Civil Appeal / Judgment
Legal Issues
- 1 Whether the calculation of pension and gratuity should be based on the consolidated salary figure or the basic pay after consolidation.
- 2 Whether the respondent was entitled to additional terminal benefits beyond what was paid by the appellant.
Ratio Decidendi
The Court held that where an employee's salary and allowances have been consolidated into a single figure, the computation of pension and gratuity must be based on that consolidated amount. The appellant, having agreed to consolidate the respondent's emoluments, could not subsequently attempt to dissect the package to minimize the respondent's entitlement to terminal benefits. The High Court's orders were upheld, and the appeal was dismissed with costs.
Court Disposition
appeal dismissed
Orders
- Appeal dismissed with costs.
- Orders of the High Court are upheld.
Full Case Text
Judgment text and source record
18 paragraphs
**THE REPUBLIC OF UGANDA**
**COURT OF APPEAL**
**CIVIL APPEAL NO. 46 OF 2005**
(An Appeal from the decision of the High Court at Kampala dated December 15, 2004 in High Court Civil Suit No. 77 of 2003)(Yorokamu Bamwine, J.)
**(CORAM: MUKASA-KIKONYOGO; DC. J, TWINOMUJUNI AND KAVUMA, JJ. A)**
**UGANDA ELECTRICITY BOARD;;;;;;;;;;;;;;;;;;;;;;;;;;;; APPELLANT**
**VERSES**
**KIGANDA PETER;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; DEFENDANTS**
Labour Law—Employment—Pension—Calculation of pension for employee where salary/wages and allowances are consolidated
The respondent was employed by the appellant from June 1980 as an Accounts Assistant. He was subsequently promoted to the post of Accounts Clerk. His services were terminated on grounds of flouting the Board's procurement; hence gross misconduct. On termination, the respondent was paid terminal benefits which he disputed and claimed for gratuity. It was contended that the appellant did not qualify for pension at the time his services were terminated. The appellant denied any liability. Save for the extra two months in lieu of notice, the appellant asserted that it had paid the entire respondent’s terminal benefits/gratuity.
Judgment was entered in favour of the respondent. Aggrieved by part of the judgment, an appeal was lodged on grounds inter alia that the consolidated salary figure did not constitute his basic pay after consolidation.
**HELD:**
Calculation of pension for employee where salary/wages and allowances are consolidated should be based on the consolidated figure. In the instant case, it would have been better for the Board to come out with a specific statement on the computation of service gratuity. The defendant having agreed to consolidate the plaintiffs emoluments, it could not now turn around and seek to open it to look at the individual elements of that package for purposes of computing his gratuity.
*Appeal dismissed with costs. Orders of High Court upheld.*
*Dated this 27th day of October 2006*
Mukasa Kikonyogo, D. C. J
Twinomujuni, J. A
Kavuma J. A