Government told to pay 800 retrenched employees

The former workers had sued, demanding terminal benefits and pension.

Kampala

A court has ordered the government to pay terminal benefits and pension packages to 825 former employees of the defunct
Uganda Posts and Telecommunications Corporation (UPTC).

The group was retrenched 10 years ago, when UPTC underwent structural re-organisation on March 15, 1998.
Several companies, including Uganda Telecommunications Ltd, Uganda Posts Ltd, Uganda Communications Ltd and Post Bank Ltd, were created out of this re-organisation of the UPTC.

Uganda Telecommunications Ltd, took on most of the workers from the defunct UPTC.
Between 1998 and 2001, the services of the claimants were terminated by the successor companies, who subsequently paid
them only gratuity.

Payments
This caused the group to sue the companies along with the Attorney General, claiming that they were entitled to pension.
Last week, judgment was delivered in their favour.

Justice Kibuku Musoke said: “The denial to pay pension to the plaintiffs and the purported change in terms and conditions
of service, clearly constituted to breach of plaintiffs contract service.” He ordered that each of the former workers be
paid his pension calculated basing on the emoluments they received from the each successor company at the time.

Justice Kibuuka awarded Shs5 million to each of the former workers as general damages for breach of contract of service.
The court further awarded an 18 per cent interest per annum to the yet-to -be paid pension to the former workers from the
date of termination till payment in full. The judge regretted that the case had dragged on for so long with four different
judges handling it.

awesaka@ug.nationmedia.com