The Industrial Court has ordered Uganda Airlines to pay its former Chief Executive Officer, Cornwell Muleya, more than UGX455 million following a ruling that found his dismissal illegal.
In a detailed judgment delivered on October 24, 2025, by Justice Anthony Wabwire Musana, court held that Muleya’s suspension and eventual termination violated the Employment Act. Additionally, it contravened Uganda Airlines’ Human Resource Manual, particularly for failing to accord him a fair hearing before dismissal
The award comes after a long legal battle that began when Muleya challenged his 2022 dismissal, arguing that he had been unfairly removed without due process.
Court findings
Justice Musana found that Muleya was not properly notified or invited to an oral disciplinary hearing allegedly held on November 11, 2021. This hearing recommended his dismissal.
Court ruled that Uganda Airlines failed to demonstrate that it had served him with notice of the hearing. Moreover, there was no proof that Muleya had refused to attend.
“We think it more probable than not that the Respondent did not effectively serve the Claimant with a notice of the oral hearing … the failure to serve notice of the oral hearing was a procedural misstep resulting in procedural unfairness,” the judgment reads in part
Court further held that the airline’s six-month suspension of Muleya, beyond the four-week legal limit, was also unlawful.
It added that the company had disguised a dismissal as a termination with notice, violating both substantive and procedural fairness standards.
Breakdown of the award
The Industrial Court directed Uganda Airlines to pay Muleya UGX 252,130,908 as severance pay.
It also awarded UGX 77,205,436 as four weeks’ net pay for failure to accord him a disciplinary hearing.
World Bank bans PwC Africa, Rwanda and Kenya affiliates from Bank Group-financed projects over fraudulent practicesFurthermore, UGX 126,065,454 was awarded as general damages for unlawful termination, and Sh460,800 as unpaid gratuity, plus one-half of the taxed legal costs of the claim.
The total amount, excluding costs, comes to approximately Sh455,862,598 ($120,000)
The court also ordered Uganda Airlines to issue Muleya a certificate of service within 21 days of the ruling, by November 14, 2025.
Uganda Airlines has already indicated that it will appeal the award.
Muleya, a Zambian aviation executive, was appointed chief executive officer of Uganda Airlines in February 2020 after serving as its technical advisor.
His contract was extended in March 2021 for 18 months, but he was suspended in May 2021 following allegations of mismanagement.
He was later terminated in February 2022, prompting his legal challenge before the Industrial Court.
There, he sought more than UGX 3.1 billion in compensation for what he described as an unjust and reputationally damaging dismissal.
However, not that Uganda Airlines has indicated it will appeal.
The dispute is now headed to the Court of Appeal, where the national carrier will seek to overturn the Industrial Court’s decision.
