Kyambogo University: Fixed-Term Continuous Employment Ruled by Court

• The Uganda Industrial Court ruled that long-term fixed-term service constitutes continuous employment.
• Kyambogo University's re-categorisation of an employee was found to be unlawful and arbitrary.
• This re-categorisation led to discriminatory underpayment and outstanding arrears for the employee.
• The case, Magdalene Atono v Kyambogo University, is cited as Labour Dispute Claim 13 of 2015 and [2026] UGIC 108.
• The judgment was issued on October 27, 2026, by the Uganda Industrial Court.

The court determined that an employee's long-term service under fixed-term contracts should be recognized as constituting continuous employment, a finding that carries substantial implications for employment practices within the country.

The Uganda Industrial Court has delivered a significant ruling in the case of Magdalene Atono v Kyambogo University, specifically Labour Dispute Claim 13 of 2015. The court determined that an employee's long-term service under fixed-term contracts should be recognized as constituting continuous employment, a finding that carries substantial implications for employment practices within the country.

The dispute centered on the university's re-categorisation of an employee, which the court found to be both unlawful and arbitrary. This action by Kyambogo University directly resulted in the employee experiencing discriminatory underpayment, a situation the court moved to rectify. As a consequence of this unlawful re-categorisation, the court also ordered the payment of outstanding arrears to the affected individual. The full details of this decision are recorded under citation [2026] UGIC 108, with the judgment issued on October 27, 2026.

This ruling from the Uganda Industrial Court clarifies a crucial aspect of labour law concerning fixed-term contracts and their potential to evolve into continuous employment. The court's pronouncement that long-term engagement on fixed-term arrangements can indeed establish a continuous service fixed-term contract challenges the notion that such contracts inherently preclude the accrual of continuous employment benefits and protections.

The finding of an 'unlawful, arbitrary re-categorisation' underscores the legal principle that employers cannot unilaterally alter the terms or status of employment in a manner that disadvantages employees without proper legal justification. Such actions, particularly when they lead to discriminatory underpayment, are subject to judicial scrutiny and intervention by bodies like the Uganda Industrial Court, which is tasked with resolving labour disputes and upholding fair employment practices.

The decision in Magdalene Atono v Kyambogo University sets a precedent that could significantly impact how institutions, including Kyambogo University, manage their workforce, particularly those employed on successive fixed-term contracts. It highlights the risk employers face if they attempt to re-categorise employees in a way that diminishes their benefits or compensation, especially when long-term service has been rendered.

This judgment reinforces the importance of recognizing continuous employment principles, even when initial engagements are structured as fixed-term. Employers must now carefully review their practices to ensure that any re-categorisation or changes in employment status do not lead to discriminatory underpayment or the accumulation of arrears, thereby mitigating the risk of similar labour disputes. The ruling serves as a vital reminder of employee rights regarding continuous service and protection against arbitrary changes to their employment terms.

This ruling clarifies that long-term fixed-term service can constitute continuous employment, exposing employers to claims for discriminatory underpayment if re-categorisation leads to reduced benefits. Lawyers should advise clients to review fixed-term contract practices and employee categorisation to mitigate risks of similar labour disputes and ensure compliance with continuous employment principles.

Source: Original reporting via Uganda Industrial Court judgment