Kampala, Uganda: The Industrial Court in Kampala has ruled that the 2020 dismissal of Betsy Mugamba, the former Chief Operations Officer of Sanyu FM, was lawful, justified, and procedurally fair, bringing to a longstanding legal battle at the Ruparelia-owned station.
Delivering the ruling, Justice Anthony Wabwire Musana and a panel of three members held that Sanyu FM had followed due process both procedurally and substantively in terminating Mugamba’s 27-year employment.
Mugamba, who joined Sanyu FM in December 1993 as a marketing executive and rose to become Chief Operations Officer in 2005, was dismissed in, 2020, following disciplinary proceedings related to a staff strike over Covid-19 pay cuts.
During the Covid-19 lockdown, the station had announced a 25 per cent salary reduction to stay afloat amid declining revenue. However, on June 5, 2020, 27 employees, led by Mugamba, are said to have rejected the pay cut and stopped working, forcing the radio off-air.
The station later accused Mugamba of inciting and participating in an unlawful strike that disrupted broadcasts and damaged its brand reputation. And following internal investigations and three disciplinary hearings held in August and September 2020, the former Sanyu FM boss was summarily dismissed.
But through her lawyer, Anthony Bazira of Byenkya, Kihika & Co. Advocates, Mugamba challenged her dismissal as unfair and unlawful, seeking over Shs 792 million in damages for lost income and emotional distress.
She argued that she had not incited a strike but merely showed solidarity with her colleagues, and that the pay cuts had been imposed without consultation. His lawyer claimed the disciplinary process was flawed, alleging procedural bias, inadequate notice, and lack of fair hearing, saying Mugamba was “ambushed with unclear charges.”
However, Sanyu FM’s lawyers, Elias Matovu and Shafic Mutesasira of Mugisa, Namutale & Advocates, insisted the dismissal was justified, noting that as a senior manager, Mugamba’s role was to uphold management directives, not to endorse or join a strike.
They argued that Sanyu FM’s internal investigation, led by media consultant Dr Joel Isabirye, concluded that Mugamba’s actions amounted to gross misconduct and breach of trust, and directly contributed to “severe brand damage.”
“She was given a fair hearing, seven days’ notice, and legal representation. The process met all legal requirements under Section 65 of the Employment Act,” the lawyers argued.
After reviewing the evidence, Justice Musana agreed with Sanyu FM’s position, ruling that Mugamba had been properly notified, given adequate time to prepare, and allowed to defend herself during the hearings.
The court further found that the strike was unlawful, since the staff had not notified the District Labour Officer as required under the Labour Disputes (Arbitration and Settlement) Act, especially given that Sanyu FM was classified as an essential service provider during the Covid-19 lockdown.
“The strike which the claimant joined by appending her hand to the joint letter was unlawful,” Justice Musana wrote. “The respondent was justified in commencing disciplinary proceedings against her.”
The court noted that as a senior executive, Mugamba owed her employer a heightened duty of trust and loyalty, and her actions, even if well-intentioned, breached that fiduciary obligation.
“As a manager, the eyes and ears of management, she was expected to represent her employer’s interests,” Musana said. “By endorsing an unlawful strike, she breached the duty of trust and confidence owed to her employer.”
The court, therefore, ruled that Sanyu FM had genuine and reasonable grounds for Mugamba’s dismissal and that she was not entitled to any compensation or damages. However, each party was ordered to bear its own legal costs.
The ruling, seen as a major precedent in Uganda’s labour jurisprudence, reinforces the principle that senior executives carry heightened accountability and that industrial actions without due legal notice are unlawful, particularly in essential services and emergency contexts.
Labour experts say the decision could deter similar disputes in the private sector and compel management teams to maintain operational continuity during future economic crises.
Neither Mugamba nor Sanyu FM’s management had issued public statements by press time, though Mugamba’s lawyer said they would consider an appeal.
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