Uganda Airlines has been ordered to compensate its former Chief Executive Officer, Cornwell Muleya, to the tune of Shs455 million after the Industrial Court ruled that his 2021 dismissal was unlawful. The ruling, delivered by Justice Anthony Wabwire Musana, found that the national carrier violated both procedural and substantive fairness in handling Muleya’s suspension and eventual termination, making the dismissal illegal under Uganda’s employment laws.

Muleya, who was first sent on leave and later suspended for several months before being dismissed, took the airline to court challenging what he described as a wrongful and humiliating dismissal. The court agreed with his claim, noting that Uganda Airlines had mishandled the entire process and failed to offer him a fair hearing before termination. Justice Wabwire said the company’s actions fell short of the law and basic principles of fairness expected from any employer.

According to court records, Muleya was placed on a three-month leave of absence on April 29, 2021, before being suspended on May 21 of the same year. The suspension was later extended for another three months on August 20, leaving Muleya out of work for six months before a disciplinary hearing even began. Justice Wabwire ruled that this sequence of actions breached Section 63 of the Employment Act, which limits suspensions to a reasonable period and guarantees employees the right to a timely hearing.

“It is common that the claimant was first sent on leave of absence for three months on the 29th of April 2021. Then, on the 21st of May 2021, he was suspended for three months. On the 20th of August 2021, the suspension was extended for another three months,” the judge observed. “Therefore, by the date of commencement of the disciplinary hearing, the claimant had been on suspension for six months, contrary to the clear provisions of the Employment Act. That renders his suspension unlawful.”

Justice Wabwire further ruled that Muleya’s dismissal was “disguised but unlawful,” adding that it was no longer acceptable for employers to disguise terminations under the pretext of administrative leave or disciplinary procedures. He emphasized that even when an employee is compensated in lieu of notice, an employer is still bound to follow due process and justify the dismissal with valid reasons. “Considering the underlying circumstances of disciplinary proceedings before the claimant’s termination with notice, we hold this to have been a disguised unlawful dismissal,” he stated.

The court faulted Uganda Airlines for failing to show evidence that Muleya was ever granted an oral hearing to defend himself against the allegations made against him. “Because the Respondent was unable to show that it respected the Claimant’s right to a fair oral hearing at which he should defend himself against the allegations made against him, we find his dismissal to be both procedurally and substantively unfair and unlawful,” Justice Wabwire ruled.

Following the judgment, the airline has been directed to pay Shs252 million as severance pay, Shs77 million as four weeks’ net pay for failing to grant a disciplinary hearing, Shs126 million in general damages, and Shs460,800 as unpaid gratuity. The total award amounts to approximately Shs455 million.

The decision marks yet another chapter in the turbulent history of Uganda Airlines, which has faced several leadership and operational controversies since its revival in 2019. Muleya, a Zambian national and aviation expert, was appointed CEO to help stabilize the airline and guide its early operations. However, his tenure was marred by internal wrangles, allegations of mismanagement, and government interference that eventually led to his dismissal.

While the ruling is a victory for Muleya, it also reignites debate about the management culture within the national carrier and the accountability of public enterprises in Uganda. For many observers, the court’s decision sends a strong message to state agencies and corporate employers alike — that procedural fairness and respect for employee rights are not optional, regardless of status or position.

As Uganda Airlines weighs its next steps, including whether to appeal, the ruling stands as a costly reminder that even the skies of national ambition must obey the laws that keep both workers and institutions grounded.