UZ to compensate Mugabe US$323,046

Philemon Jambaya

Zim Now Editor

The University of Zimbabwe (UZ) has been ordered by the Supreme Court to pay its former bursar, Vengai Mugabe, US$323,046 in damages for unfair dismissal. Mugabe was fired after he refused to authorize financial transactions he deemed to be in violation of the Public Procurement and Disposal of Public Assets Act.

Mugabe had raised concerns with the UZ vice-chancellor in a memorandum dated June 5, 2018, highlighting that several procurement transactions he was instructed to approve contravened the legal requirement for bids on procurements exceeding US$20,000. Despite Mugabe's insistence on adherence to the law in a subsequent memo on June 14, 2018, and his offer to resign if his stance was hindering the university's progress, the vice-chancellor accepted his "immediate resignation" on June 19, 2018.

UZ then informed Mugabe that he was in breach of his contract for not providing the mandatory three months' notice and demanded an equivalent of three months' salary. Mugabe, however, refuted that his memorandum constituted a resignation and denied owing the university any notice pay. The university proceeded to pay him terminal benefits of a paltry $4,089.04 in September 2018.

Seeking recourse, Mugabe approached the courts for unfair dismissal, initiating conciliation proceedings. When conciliation failed, the matter was referred for determination by a labour officer, Jealous Zhakata, who initially declined jurisdiction citing an arbitration clause in the employment contract. This decision was successfully challenged by Mugabe at the Labour Court, which then remitted the matter back to Zhakata for determination.

Upon resumption of the hearing, Zhakata ruled that Mugabe's communication could not be interpreted as a resignation and concluded that he had been unfairly dismissed. Consequently, Zhakata ordered UZ to pay Mugabe US$323,036.69 or its equivalent in local currency at the prevailing Reserve Bank of Zimbabwe (RBZ) auction rate as damages in lieu of reinstatement. The award also included the delivery of a Toyota Land Cruiser, two laptops, a desktop computer, and 11,520 litres of fuel (to be paid in local currency at the RBZ auction rate).

UZ appealed this Labour Court judgment at the Supreme Court, arguing that Mugabe had terminated his own contract and was not entitled to damages for unlawful termination. However, the Supreme Court bench, comprising Justices Antonia Guvava, Tendai Uchena, and Hlekani Mwayera, upheld the Labour Court's decision, finding that Mugabe had indeed been unfairly dismissed.

In their ruling, the Supreme Court justices stated, "Damages in respect of unfair termination of fixed term contracts are generally calculated, regard being had to the total amount the employee would have earned under the contract had the employment relationship continued. Essentially, such damages aim to place the employee in the position he or she would have been in had the contract run its full course..." The bench concluded that the Labour Court's confirmation of the award in Mugabe's favor was "unassailable" and dismissed UZ's appeal with costs, effectively compelling the university to compensate the unfairly dismissed bursar for upholding principles of public procurement.