A former employee of Finca Uganda has won a case against the financial institution after his contract was unfairly terminated.Gordon Bajunana, a former a recovery officer at by Finca, a licensed Microfinance Deposit-Taking Institution (MDI), was awarded UGX51m for wrongful dismissal.Finca dismissed Bajunana over poor performance. However, the claimant (Bajunana) went to Industrial Court and registered a labour dispute Reference NO. 007 OF 2019, where he sought declaration that his termination as Recovery Officer was unfair and without justifiable cause.He had served the Respondent (Finca) for approximately 15 years in various capacities.He was dismissed for failing to recover UGX 50,000,000/= (Uganda shillings Fifty Million) per month from Fort Portal Branch. The Claimant contended that the target was unattainable due to the limited recovery area, a concern he raised with the Respondent, who acknowledged the challenge and promised to allocate him additional branches but failed to do so before terminating his contract.Bajunana said the Respondent refused to pay severance pay and other accrued terminal benefits despite his demand. He sought payment of unpaid salaries and accrued benefits, severance pay, interest, general damages, costs, and any other relief the Court deemed fit.The bank, however, denied that the termination was unfair or unlawful and disputed all monetary claims.It averred that the Claimant had persistently exhibited poor performancethroughout his employment despite receiving cautions, a demotion, performance evaluations, performance hearing, and placement on a Performance Improvement Plan (PIP).The Respondent contended that the Claimant’s employment was lawfully terminated following a duly convened performance hearing after he failed to improve. It further maintained that the recovery target of UGX 50,000,000/= (Uganda Shillings Fifty Million) was reasonable and appropriate, and that the proposal to allocate additional branches was considered but found impracticable. It was contended that the Claimant was paid all his contractual entitlements, including salary, payment in lieu of notice, leave pay and retirement benefits, and was therefore not entitled to severance pay.Liability was denied, and Finca prayed that the Claim be dismissed with costs.Court had a duty to find out if the termination of Bajunana’s employment by Finca was unfair and unlawful, and what remedies were available for the parties.Bajunana estified that he joined Finca as an intern in 2004 before being appointed Accounts Relations Officer and subsequently appointed Recovery Officer in 2015 for the Mbarara and Kabale branches.He stated that throughout his employment he performed diligently, successfully improving the performance of the Masaka branch and earning several “Best Performing Officer” awards. He testified that his employment problems began in January 2017 when Finca unilaterally increased his monthly loan recovery target for Fort Portal Branch to UGX 50,000,000/= (Uganda Shillings Fifty Million) per month, which he considered unreasonable and impossible to attain. Despite repeatedly requesting for additional branches, as allegedly promised by the Regional Manager and Head of Legal Services, none were allocated.Following warning letters, a performance hearing, and his failure to meet the target, he was terminated on 17th February 2018.However, Bajunana maintained that the target was not contained in his job description, rendering his termination unfair and unlawful.Under cross-examination, Bajunana testified that he was terminated for poor performance as stated in his termination letter. He confirmed that his performance had been evaluated twice every year throughout his employment of almost 15 years (less four months) and that performance evaluations were conducted annually for all the positions he held. He testified that he joined the Finca as an intern in 2004 before serving as a Credit Officer, Credit Supervisor, Credit Officer for another product, Recovery Officer and finally Performance Officer.He admitted that he had previously been demoted from Credit Supervisor to Credit Officer for poor performance and had appeared before a performance hearing in 2015.He further admitted that towards the end of his employment, he was a poor performer and was placed on a Performance Improvement Plan (PIP) from July to December 2017, which culminated in his dismissal.Sarah Ekirapa, the bank’s Training and Staff Development Manager testified that she was familiar with the Bajunana’s employment history and the circumstances leading to his termination.She argued that Bajunana was lawfully terminated, had been paid all his terminal dues, including salary, payment in lieu of notice, leave pay and provident fund contributions, and was therefore not entitled to severance pay or any further reliefs.Under cross-examination, Ekirapa testified that although the Claimant’s contract of employment was permanent and pensionable, it was performance-based. She confirmed that the Claimant was initially promoted to Accounts Relations Supervisor before being demoted due to poor performance and later transferred between branches and departments based on operational needs.She maintained that Bajunana was lawfully terminated for persistent poor performance, particularly his failure to achieve the 2017 recovery targets for Fort Portal Branch.She stated that recovery targets were determined based on the branch’s risk portfolio and, in the Claimant’s case, were agreed upon with the Head of Legal.Court found that the Respondent’s dismissal of Bajunana on account of poor performance was both procedurally and substantively flawed.According to court, Finca unfairly dismissed Bajunana by setting an unachievable recovery target and withholding the promised branch support needed to meet it.Furthermore, the court said the employer violated procedural rules by giving the employee only twenty-four hours to prepare for his final performance hearing.”Consequently, the Claimant’s dismissal was unfair and unlawful, thereby entitling him to declarations, statutory severance, general and punitive damages, and costs,” said Justice Anthony Wabwire Musana in a ruling delivered on July 1, 2026.Bajunana was awarded general damages in the sum of Shs 18,018,000, and Shs 15 million in statutory severance pay in the sum of UGX 15,015,000/= (Uganda Shillings Fifteen Million, Fifteen Thousand Only), calculated at one month’s salary for each of his 15 completed years of service.”Interest shall accrue on the award of Severance Pay at the rate of 15% per annum from the date of this award until payment in full,” court declared. 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