Supreme Court awards UZ bursar US$320,000

A former bursar of the University of Zimbabwe (UZ), Vengai Mugabe, has been awarded US$323,046 in damages after a lengthy legal battle over his dismissal in 2018. Mugabe was fired after he refused to authorise transactions that contravened the provisions of the Public Procurement and Disposal of Public Assets Act.

Mugabe's legal challenge to his dismissal culminated in a ruling by the Supreme Court, which upheld the Labour Court's decision and dismissed UZ's appeal for lack of merit. The court found that Mugabe had been unfairly dismissed and was entitled to damages in accordance with the terms of his contract.

Mugabe, who was employed as a bursar at UZ on a fixed-term contract, had raised concerns regarding procurement transactions he was instructed to authorise in June 2018. He informed the UZ vice-chancellor that procurements exceeding US$20,000 should undergo a formal bidding process, as stipulated by law. Despite his warnings, the university pressed him to authorise the payments, which Mugabe believed violated legal provisions.

On June 5, 2018, Mugabe wrote a memorandum to the vice-chancellor raising his concerns, but received no response. A week later, on June 14, he reiterated his position and offered to resign if his refusal to approve the payments became a hindrance to the university's progress. His offer of resignation was accepted by the vice-chancellor on June 19, 2018, but Mugabe disputed that it was a formal resignation letter.

The university argued that Mugabe had breached his contract by failing to give the mandatory three months' notice, but Mugabe maintained that he had not resigned and was unfairly dismissed. The university subsequently paid him terminal benefits amounting to $4,089.04, but Mugabe sought to challenge the dismissal through legal channels.

Mugabe approached the courts for unfair dismissal, and the matter eventually reached the Supreme Court after a series of rulings. In its final decision, the Supreme Court found that Mugabe's letter could not be construed as a resignation, and that he had been unfairly dismissed. The court awarded Mugabe damages equivalent to the full value of his remaining contract, including his salary and benefits, which amounted to US$323,046.

Additionally, the court ruled that UZ was to deliver a Toyota Land Cruiser, two laptops, a desktop computer, and 11,520 litres of fuel, which Mugabe was entitled to as part of his work equipment and benefits. The fuel was to be paid for in local currency at the prevailing Reserve Bank of Zimbabwe auction rate.

The Supreme Court bench, comprising Justices Antonia Guvava, Tendai Uchena, and Hlekani Mwayera, confirmed the Labour Court's decision, stating that Mugabe's dismissal had been unjust and that the award of damages was appropriate to compensate for the unlawful termination of his employment.

"Damages in respect of unfair termination of fixed-term contracts are generally calculated by considering the total amount the employee would have earned had the employment relationship continued," the bench stated. "The court a quo's confirmation of the award in favour of the second respondent (Mugabe) is unassailable and cannot be faulted."

The ruling marks a significant victory for employees challenging unfair dismissals, especially in cases where the employer fails to adhere to the terms of the Public Procurement and Disposal of Public Assets Act.