Case Law[2023] UGSC 58Uganda
Uganda Post Limited v Mukadisi (Civil Appeal 13 of 2022) [2023] UGSC 58 (29 November 2023)
Supreme Court of Uganda
Judgment
5 THE REPUBLIC OF UGANDA
IN THE SUPREME COURT OF UGANDA AT KAMPALA
(CORAM: MWONDHA, TIBATEMWA-EKIRIKUBINZA, TUHAISE,
cHrBrTA AND MUSOKE JJ.SC)
10
CIVIL APPEAL NO. 13 OF 2022.
BETWEEN
1s UGANDA POST LIMITED APPELLANT
AND
CONSOLATE MUI(ADISI RESPONDENT
20
[An
appeal
from
the decision of the Court of Appeal at Kampala
before: (Hon. Justices: Cheboion Barishaki, Stephen Musota and
Christopher Madrama, JJA) in Ciuil Appeal No.251 of 2O18 dated lOth
March 2022.1
Representationz The Appellant companA was represented by
Couns el .lfasser LumuL e no.
The Respondent LUas represented by Counsel Kagere Yusuf.
Case Summary: Employrnent law - Unlawful termination of
employment contract.
Employment law - Genera.l damages and payment in lieu of notice
serve different purposes.
Unlawful termination of employment
-
A wronged part5r can claim
both pagment in lieu of notice and compensatory damages. The
compensatory damages can be in form of general or aggravated
damages.
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1,
t
5 JUDGMENT OF PROF. TIBATEMWA-EKIRIKUBINZA, JSC.
Facts:
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The respondent was appointed by the Appellant company on
probation as Head of Human Resource and Administration. Following
the satisfactory completion of her probation, the respondent was
confirmed as the appellant's employee in the position of Head of
Human Resource for a period of 4 years commencing on 20th July,
2009. She was issued with an appointment letter as well as a copy of
the terms and condit.ions of service.
On the 17th of August, 20 11, the appellant by letter instructed the
respondent to take forced leave to pave way for investigations into
allegations of discrimination at work, use of unacceptable language
and professional misconduct which was made against her by one
Acham Christine-a former employee of the appellant.
Following the letter of 17th August, 201 1, an email was circulated to
the rest of the company staff stating that the respondent had been
sent on leave. On 18th August,2OIl, the respondent protested the
contents of the letter and following her protest, the decision to send
her on forced leave and all earlier communications were withdrawn.
On 31st August, 2011, the respondent received an invitation to
attend the appellant's Board Meeting which was to be held on 2nd
September,20ll to defend herself against the allegations.
Following the Board meeting, the appellant terminated the
respondent's employment with immediate effect. The respondent
contended that her contract of employment with the appellant was
unlaw{ully terminated, the decision having been based on
unfounded allegations made against her by Acham Christine and
that the hearing conducted hy the Board of Directors of the appellant
company contravened the rules of natural justice and tainted the
decision of the Board.
The appellant denied the claims and asserted that the termination of
the respondent's employment was proper and in accordance with its
terms and conditions of service. Furthermore, that the respondent
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5 had engaged in acts of insubordination, indiscipline ani had used
insulting language against Acham Christine which conduct was not
befitting of a person in the position of Head Human Resources and
Administration of the said comparly.
At the High Court, judgment was entered in favor of the respondent.
Dissatisfied with the trial court's decision and orders, the appellant
appealed to the Court of Appeal.
The Court of Appeal found that the respondent was entitled to fair
and reasonable treatment by the appellant. In his lead judgment,
Cheborion Barishaki, JA held that:
"The
learned tial Judge justified
his reasons
for
awarding a sum of 15O,O00,O0O/ = (One Hundred and
Fifiy Million) as resulting
from
the appellant's unfair and unlatuful act
in terminating the respondent. It is mg considered uietl that in
awarding general damages, the learned trial Judge exercised his
discretion judiciously and I
find
no reason to interfere with the au.tard
of general damages of 150,O0O,000/ = giuen to the respondent."
The Court of Appeal dismissed the appeal and upheld the judgment
as well as the orders of the trial Judge. The costs in both courts were
awarded to the respondent.
Dissatished with the Court of Appeal decision, the appellar^t company
lodged an appeal in this Court on the following ground:
The Learned Trial Judge erred in Law and fact when he awarded
the Respondent shs. 15O,OOO,OOO / = (shilling One Hundred Fifty
Millionl as general damages which was manifestly excessive in
the circumstances and amounted to an illegality.
Prayers:
(i) The Appeal be allowed.
(ii) The decision of the Court of Appeal be reversed.
(iii) The Appellant be granted the costs of this Appeal as well those
in the lower Courts.
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5 Appellant's submissions
The Appellant submitted that the general damages award of Ug. Shs.
150,000,OO0/= is manifestly excessive warranting the intervention of
this Honourable court.
Counsel argued that, the Respondent misled the trial judge into
believing that salary for the unexpired term of the contract, gratuity
for the unexpired term of 23 months, other a-llowances and
entitlements for the unexpired term of contract such as airtime,
medical allowance, lunch subsidy should be taken into account when
awarding her general damages for unlawful dismissal.
The Appellant's counsel submitted that the Respondent used a wrong
principle in guiding the trial judge to assess the quantum of
damages. That it was as a result of this error that the trial judge
awarded a hefty sum of Shs. 150,00O,OOO/= as general damages to
the Respondent. Furthermore, that the Justices of thc Court of
Appeal were also misled by the above mentioned
assessment and upheld the above decision of the trial judge.
In support of the above submission, counsel referred to the decision
of this Court in Bank of Uganda v Betty Tinkamanyirel which
states the law regarding the award of damages to an employee for the
termination of an employment contract. In that case, Kanyeihamba
JSC (as he then was) who wrote the lead judgment observed at page
7 lines 4-15 that:
"The contention that an emplogee uhose contract of emplogment is
terminated premahrely or illegallg should be compensated
for
the
remainder of the
Aears or
period when they would haue retired is
unattainable in Law. Similarlg, claims of holidags, leaue, lunch
allowances and the like which the unlaufully dismissed employee
would haue enjogeci had the dismissal not occurred are merely
speculatiue and cannot be
lustified
in Law.
I u.tould confine the compensation
for
the unlawful dismissa/ of the
Appellant to the monetary ualue of the peiod that uas necessary to
giue proper notice of termination which is commonlg known in lau as
compensation in lieu of notice.
l
Supreme Court Civil Appeal Number 12 of 2007
4
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5 The pinciples established by this Court in Barclags Bank of Uganda
u Godfrey Mubiru (supra) remain good lau that gouerns the
relationship between an employer and employees with regard to
termination of the latter's employment."
According to counsel, application of the principle in the above
authority meant that the Respondent was entitled to damages
equivalent to one month's salary which was Ushs. 6,O5O,0O0/-.
Respondent's reply
The Respondent's counsel argued that the trial judge was never
misguided on the principles that are supposed to be considered while
awarding general damages That the Court of Appeal held, inter
alia, on page 1O of the judgment that: the learned trial judge justified
his reasons for awarding a sum of UGX 150,000,000/= (One
Hundred and Fifty Million). This stemmed from the Appellant's
actions of unfairly and unlawfully terminating the respondent's
employment. Furthermore, that the Court of Appeal held that in
awarding general damages, the learned trial judge exercised his
discretion judiciously and there was no reason to interfere with the
award of general damages.
In conclusion, counsel submitted that the leamed Justices of the
Court of Appeal properly evaluated the evidence on record, the
circumstances of the case, the relevant authorities and principles of
the law regarding award of general damages and it was on the said
basis that the Court of Appeal upheld the decision of the trial judge
of awarding the respondent UGX 15O,OOO,O0O/: (Shillings One
Hundred Fifty Million only).
Counsel therefore prayed for the Appeal to be dismissed with costs
to the Respondent.
Rejoinder
In rejoinder, the Appellant submitted that the Court of
Appeal considered ttre principles goveming the award of general
damages generally instead of addressing the principles governing
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5 the award of damages in employment matters which said principles
have been settled by this Court in the case of Bank of Uganda v
Betty Tinkamanyire (supra) thereby erring in law and awarding
damages of Ushs. 15O,OOO,O0O/= (Shillings One Hundred Fifty
Million Only) which were manifestly excessive in the circumstances
and amounted to an illegality.
Furthermore, counsel submitted that the Court of Appeal is bound
by the Supreme Court decision of Betty Tinkamanyire. That
consequently, in declining to follow the principles governing the
award of damages in employment matters set out in the said case,
the Court of Appeal had erred in law.
Counsel argued that even if the principles governing the award of
damages in employment matters were as the Court of Appeal stated,
there was no justification for an increase of genera-l damages from
Ug. Shs. 6,O50,000/= to Ug. Shs. 150,000,000/=.
Court's consideration
The essence of the Appellant's arguments is that the award of general
damages in cases of unlawful dismissal from emploSrment should be
restricted to the amount
pav
able in lieu of notice stipulated in the
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employment contract. That any payment beyond this would be
excessive and illegal.
I however note that in their submissions, the Appellant seems to blur
the difference between damages awarded for wrongs suJered as a
result of the unlawful termination of employment
-
general damages
- on the one hand, and compensation for failure by the employer to
give the employee notice as stipulated in the contract of employment,
on the other hand.
Consequently, whereas the sole ground of appeal is against the
quantum of general damages awarded by the Trial Court and upheld
by the Court of Appeal, the submissions elucidating the ground talk
about the Respondent's claims for salary for the unexpired term of
the contract, gratuity for the unexpired term of 23 months, other
allowances and entitlements for the unexpired term of cor,tract such
6
b
5 as airtime, medica-l allowance, lunch subsidy which should be taken
into account when awarding her general damages for unlawful
dismissal. The appeliant argued that it is this that misguided court
in arriving at a wrong quantum of general damages. I must point out
however that the claims being referred to in the argument of the
Appellant are only relevant to an interrogation of what is justifiable
as a compensatory award for the termination of an employment
contract without notice.
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The issues to be determined in this appeal are therefore as follows:
where it is proved that an employee's contract was unlaw{ully
terminated,
1. What principles are relevant to a determination of damages for
termination of employment before expiry of contract, without
notice?
2. What principles are relevant to a determination of general
damages? 20
30 lixed
period.
and one in which there is a
provision
enablins
either party to terminate the emplovment. The learned Justices
stated the law to be that in the event of wrongful termination by
the employer, the employ ee in the former contract would be
entitled to recover as damages, the equivalent of remuneration
3s for the balance ofthe contract
period, whereas in the latter case
7
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,
sccA No.G of 1998
The answer to issue 1 above is found in the judgment of Mulenga
JSC (as he then was), who while agreeing with the Courr. of Appeal
held in Gullabhai Ushillani v Kampala Pharmaceutical Limited2
zs held that:
In deciding that issue
1of
damages), the Court of Appeal
appreciated that the employment in the instant case, was for a
fixed period. The Court made a distinction between a contract
which makes no provision for termination prior to exPirv of the
the wronEed emplovee wotrld be entitled to recover as damages.
the equivalent of remuneration for the period stipulated in the
s contract for notice. I respectfully agree that this is the correct
10
statement of the law. I would add that it is premised on the
principle of restltrttlo ln integrunL Darrl,ages are intended to
restore the wronged party into the position he would have been
in if there had been no breach of contract. Thus, in the case of
employment for a fixed period which is not terminable, if there
is no wrongful termination, the employee would senre the full
P
eriod and receive the full remuneration for it. And in the case
of the contract terminable on notice if the termination
preyisian iS complied with, the employee would serve the
1s stipulated notice
period and
receive remuneration for that
perild. or would be paid in lieu of the notice. (My emphasis)
20
The above position of law was subsequently reiterated in this Court's
decision of Bank of Uganda v Betty Tinkamanyire (Supra). In that
case, the appellant faulted the Court of Appeal for, inter alia,
upholding the award of damages to the respondent for wrongful
dismissal which exceeded the three months' salary in lieu of notice
as well as the upholding of the award of the respondent's salary for
the remaining period of her service. In addressing these grounds of
appeal, this Court as expressed in the judgment of Kanyeihamba,
JSC held that: 25
30
"... compensation for the unlawful dismissal of the appellant was
to be confined to the monetary value of the period that was
necessary to give proper notice of termination which is
commonly known in law as compensation in lieu of notice."
Thus, the Court in the Betty Tinkamanyire decision set aside the
Court of Appeal's decision which upheld the award of Ushs.
3O,00O,OOO/= as general damages for wrongful dismissal which had
exceeded the notice period the respondent was contractually entitled
to. This decision was in line with the earlier cases of Barclays Bank
of Uganda v Godfrey Mubiru3 and Ahmed lbrahim Bholm v Car &
General Limiteda
35
3
sccA No.1of 1998.
4
SCCA No.12 of 2002
8
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5 In all the above cases, this Court has been consistent in applying the
principle in respect of compensatory damages following unlawful
termination: that lhe compensation should be resticted to the
contractual notice peiod or if there is none in the contract, reasonable
notice depending on the circumstances of each case. The
compensatory award is limited to reimbursing the employee for the
employer's failure to give proper notice of termination of their
employment.
In the matter before us, the employment was for a hxed period- four
years. Paragraph 12(b) of the contract specifica-lly stipulated that:
"Afier confirmation, the appointment mag be terminated bg either party
giuing one month's notice or bg pagment of an equiualent of one
month's salary." The contract made provision for termination of the
employment prior to expiry of the fixed period.
According to the above authorities, a wronged employee was entitled
to recover as compensation, the equivalent of remuneration for the
period stipulated in the contract for notice.
The question which follows is: whether, in the present appeal, the
lower courts followed the said principle in exercising the drscretion to
award compensation damages. The Appellant argued that the
Respondent's plaint misguided the trial Court by including claims
beyond the direct pecuniary benefit/salary stipulated in the contract
which the respondent was entitled to receive upon termination of her
employment contract. The particular claims highlighted by the
Appellant's counsel which misguided court were:
(i) Salary for the unexpired term of the contract from September
20 1 l-July 2013 i.e. 23 months at the rate of Ushs.
6,050,000/= per month at a total sum of Ushs.
139,1s0,0O0/ =.
(ii) Gratuity for the unexpired term of 23 months at 2Oo/o of Shs.
139,1s0,OOO/ =.
(iii) Other allowa.irc€S d.rrd entitlement for the unexpired term of
the contract i.e. airtime of Shs. lOO,OOO/= per month for 23
months (Shs. 2,3OO,OOO/=); medical allowance at 5O,OOO/=
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5 per month for the unexpired period of 23 months (shs.
1,150,OOO/=); lunch subsidy of 5,00O/= per day for 23 days
a month for 23 months (shs. 2,645,00O/=).
Al1 the above claims amounted to a total of Ug. Shs. l9O,'/99
,333 I
= .
At the Trial Court, the Judge considered the claims under issue three
which was framed as follorvs: What remedies are auailable to the
parties?
The Trial Judge considered each of the above claims one by one.
Regarding the claim for salary for unexpired term of contract, the
Judge held as follows:
"... the plaintiffs contract of seruice was
for
a peiod of 4 yeors
[which]
had commenced on 20th Julg 2009. It is the case that the plaintiffs
contract of seruice uas terminated on 3d September 2011. In effect
therefore, there is a peiod of about 23 months remaining on her
contract.
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20 In this matter, I will
follow
the decision of the Supreme Court in the
case of Bank of Uganda a Betty Tinkamangtre SCCA No.72 of
2OO7 to hold that the Plaintiff is not entitled to claim the salaru or anu
emoluments for the unexpired term of her contract. I uill consider the
25
monetary ualue of one-month notice peiod that she was entitled to tn
lieu of notice.
I note that the one month's termination notice has been con.sidered as
part of the terminal benefits that are pagable to the Plaintiff." (My
emphasis)
It is clear from the Trial Court's holding above that the Judge followed
the principles laid down in the already discussed authorities which
are to the effect that an employee's compensation following unlawful
termination is restricted to the equivalent of the remuneration for the
period of notice stipulated in the employment contract and does not
include compensation for the remaining or unexpired term of the
contract.
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s I therefore find that even though the Respondent's plaint included
compensatory claims for the unexpired term of the contract, the
Judge applied the correct principles of law and declined to award the
same. The Judge was not misguided by the claims for the unexpired
term of the contract. A notice period of one month was required for
10 the Appellant as an employer to terminate a contract. A
'payment in
lieu of notice' became immediately payable as compensation at an
amount equal to what the Respondent would have earned as salary
by working through the whole notice period. It is this that the trial
judge awarded to the Respondent.
1s But this could not, and did not prevent the trial judge from
considering the claim for general damages as an independent award
as will be explained below.
Issue 2
The Appellant faulted the quantum of general damages assessed by
zo the Trial Court and upheld by the Court of Appeal. I will now answer
the question: where it is proved that an employee's contract was
unlau{ully terminated, what principles are relevant to a
determination of general damages?
In arriving at the quantum, the Trial Judge held as follows:
zs "The plaintiff auerred in her pleadings that because of the defendant's
unlauful termination, such actions haue caused her mental anguish,
stress and contempt
from fellow
emplogees and contemporaies. In
Brrnk of Uganda a Bettg Tlnkamanglre SCCA No.72 of 2OO7,
court held that: '... th.e reasoning of the Court of Appeal in Agbettah u
30 Ghana Cocoa Marketing Board (1984-86) GLRD 16 should be
followed
so that the courts were able to anaard damages which reflected the
courts disapproual of a wrongful dismissal and the sum tuas not
confined to an amount equiualent to the worker's u.tages."'
In this respect, it is my
finding
that the defendant uillfully uiolated the
3s emplogee's terms and conditions of seruice in the manner that the
disciplinary proceedings and heaings u)ere instituted, conducted and
determined to the prejudice of the plaintiff, that occasioned
5 inconuenience and humiliation to her
colleague s and profe s sional circle s.
before her
family, fiends,
Taking that into accoun\ and the
fact
that the plaintiff had uorked
with the defendant
for
a peiod of two
Aears,
an anaard of UGX
150,000,000 (one hundred and
fifiq
million), would be sufficient as
general damages."
In upholding the above quantum of general damages, the Court of
Appeal held that:
"It is a settled proposition of lau that uthile assesslng general
damages, the Court considers the nafire of harm, the ualue of the
subject matter and the economic inconuenience that the injured party
mag haue been put through.
[See
Ugandq Commercial Bank V Deo
Kigozt (2OO2) 1 EA 3OS and Kibimba Rice Ltd u Umar Sulim, SCCA
No.17 of 19921.
The Record of appeal indicatcs that the Respondent had been hired as
the Head Human Resource and Administration Manager
for
the
appellant Compang
for
a contract of 4
Aears
commencing
from
2oth
dag of Julg, 20O9 to 3rd September, 2011, uhen the contract was
terminated. The euidence on record shorus that the respondent's
termination of employment was unlawful. The learned trial Judge
discussed the instances where the appellant
failed
to institute, conduct
and resolue the matter in accordance with the tenets of a
fair
heaing
under the
following
5 heads;
failure
bg the appellant to accord the
respondent enough time to prepare her defence, the offence u)ds not
clearlg set out in the prouisions of the disciplinary code and its
procedures, the appearance ofthe respondent before the board ofthe
appellant that submitted to external inJluences and tuas eager to
demonstrate ils submission to tLrc demands of the said
forces,
the
omission or
failure
to refer the matter to the Disciplinary Committee of
the appellant that tuas in place as the proper
forum to
resolue the
matter, the Board of Directors acting as a disciplinary
forum
and
participation of the Managing Director in the proceedings, discussion
and decision.
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40 The learned tial Judge justified his reasons
for
awarding a sum of
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5 150,000,000/- (One Hundred and Fifig Million) as resulting
from
the
appellant's unfair and unlawful act in terminating the respondent.
It is my considered uieu that in awarding general damages, the
learned trial Judge exercised his discretion
judiciouslg and I
find
no
reason to interfere utith the award of general damages of
150,0O0,OO0/ = the respondent."
General damages are the direct natural or probable consequence of
the wrongful act complained of and include damages for pain,
suffering, inconvenience and anticipated future loss.s General
damages are monetary compensation for the non-monetary aspects
of a wrong suffered by a plaintiff.
The basis for the award of general damages is the doctrine of restitutio
in integrum which is supported by Article 126
l2l
(c) of the
Constitution which provides that in adjudicating cases, adequate
compensation shall be awarded to victims of wrongs.
In computing the adequate compensation which a plaindff may be
awarded as general damages, the court exercises judicia-l discretion.
The discretion is guided by factors such as the value of the subject
matter and the econc-,mic inconvenience that a party may have been
put through.6
I note that in arriving at the award of general damages, the Court of
Appeal took into consideration the high handed manner in which the
Respondent's employment was terminated as well as the procedural
improprieties in the disciplinary action undertaken by the Appellant's
Board of Directors. Having taken into account these factors, and the
period of 2 years and I month the Respondent had served the
Appellant company, the Court of Appeal found that the Trial Court
had exercised its discretion judiciously and upheld the award of
general damages in the sum of Ug. Shs. 150,OO0,OOO/=. It therefore
cannot be said that the court acted upon a wrong principle of law nor
s
Storms vs. Hutchinson [1905] AC 515; Betty Kizito v David Kizito & 7 Ors (Civil Appeal No.8 of 2018) [2019] UGSC
28 (19 September 2019)
6
Kibimba Rice Limited vs. UmarSalim (sCCA No.17 of 1992).
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5 can it be said that the amount was excessive and an entirely
erroneous estimate of the damages to which the plaintiff is entitled.
An appellate Court will not interfere with an award of general
damages by a lower court unless the court has acted upon a \,'rrong
principle of law or that the amount is so high or so low as to make it
an entirely erroneous estimate of the damages to which the plaintiff
is entitled.T
In the circumstances of the case before us, I find no reason to
interfere with the award.
I also hasten to add that general damages on the one hand, and
pagment in lieu of notice on the other serve different purposes.
General damages can be awarded in addition to the paynrent in lieu
of notice given to an employee who has been unlawfully dismissed
from employment.
Pa5rment in lieu of notice is intended to compensate the wrongfully
terminated employee for the employer's breach of contract in failing
to give due notice of termination.
General damages are not tied to specific financia-l losses. Genera-l
damages are assessed by the court and are not restricted to the
salary or pecuniarlr benefit stipulated in the employment contract.
They are awarded to compensate the employee for nor,-economic
harm or distress caused by the wrongful dismissal. These damages
include compensation for emotional distress, mental anguish,
damage to reputation and .rny other non-monetary harm suffered
due to the dismissal.
I note that the Respondent at paragraph 10 of her plaint averred that,
the defendantt (appellant in this Court) unlawful actions haue
caused her mental anguish, stress and contempt
from fonner fellou
employees and contemporaies
for uhich
she uill seek to recouer
from
the defendant.
7
Robert Coussens vs. Attorney General SCCA No.8 of 1999; Crown Beverages Ltd vs. Sendu Edward SCCA No.1of
2005.
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Genera,l damages were awarded as disapproval by the court of the
high handed manner in which the Respondent's employment was
terminated as well as the procedural improprieties in the disciplinary
action undertaken by the Appellant's Board of Directors. The courts
below made a finding that the manner in which the disciplinary
proceedings and hearings were instituted and conducted occasioned
inconvenience and humiliation to the Respondent before her family,
friends, colleagues and professional circles.
The Appellant submitted that the effect/consequence of the decision
of this Court in Bank of Uganda v Betty Tinkamanyire (Supra) - a
decision which states the law regarding the award of damages to an
employee for the termination of an employment contract
-
is that an
employee cannot be awarded anything beyond payment in lieu of
notice.
A careful reading of the Betty Tinkamanyire decision does not
support the Appellant's argument. What the decision propounds is
as follows:
i. An employee who is dismissed unlaw{ully is not entitled to
the amount of money they would have earned had they not
been dismissed.
ii. An employee who is dismissed without notice is entitled to
palrnent of the monetary value of the period that was
necessary to give proper notice of the termination which is
commonly known in law as compensation in lieu of notice.
iii. Where an employee is dismissed in a manner that is
abusive or unfair, they might have a claim for aggravated
damages as compensation in addition to compensation in
lieu of notice. Damages can be awarded as compensation
for distress arising lrom the manner in which the defendant
committed the wrong.
The decision did not propound anything to the effect that general
damages cannot be paid to a wrongfully dismissed employee beyond
what is due to them as paS,.rnent in lieu of notice. As a matter of
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/7
5 fact, the Court awarded aggravated damages to the employee. In the
words of Kanyeihamba JSC:
The acts of the Appellant (employer) were not only
unlawful but were degrading and callous. In my
view, a good case has been shown for the
respondent to be eligible for the award of
aggravated damages.
The same principle regarding damages beyond payment in lieu of
notice had been enunciated earlier by the East African Court in
Obongo Vs Municipal Council of Kisumu8. wherc court held that:
10
15 It is well established that when damages are at e
and a court is making a general award, it may take
into account factors such as malice or arrogance on
the part ofthe defendant and this is regarded as
increasing the iniurv suffered by the plaintiff, as,
20 for example, by causing him humiliation or distress.
25
Damages enhanced on account ofsuch aggravation
are regarded as still being essentially compensatory
in nature. On the other hand, exemplary damages
are completely outside the field of compensation
and although the benefit goes to the person who
was wronged, their object is entirely punitive.
Arising from my discussions above, I come to the conclusion that in
some circumstances, in addition to payment of the contractually
agreed upon amount in lieu of notice, courts can order the employer
to pay damages to compensate for sufferinq arising out of the manner
in which the termination of the contract was effected. A court
exercises its discretion to determine whether to award general or
aggravated damages.
Proceeding under Article L32
l4l
of the Constitution which allows
this Court to depart from its own judgments, I depart from this
Court's earlier decision in Stanbic Bank Uganda Limited vs.
Deogratius Asiimwe'r where it was held that where an employee's
30
35
3
[1971] EA 91.
e
sccA No.18 0f 2018
16
,d
5 contract is terminated unlawfullg but the employer makes payment in
lieu of notice in line with the contract of employment, no additional
general damages can be awarded. And that pagment in lieu of notice
is preciselg uhat general damages would address or atone if such
compensation had not been paid to the emplogee.
10
15
Conclusion and orders
Arising from the above analysis, I uphold the award of general
damages in the sum of Ug. Shs. 15O,000,000/=.
I would dismiss the appeal and award costs to the Respondent.
I would also award costs in the courts below to the Respondent.
c1
tb.
6{5
v<.nnL=-.r
Dated at Kampala this day of 2023.
20
f,
'",ra
"^-\<nn^r"--"--'
PROF. LILLIAN TIBATEMWA-EKIRIKUBINZA
JUSTICE OF THE SUPREME COURT.
25
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17
rE
\ uGr3
:R:S
THE REPUBLIC OF UGANDA
IN THE SUPREME COURT OF UGANDA TA KAMPALA
(Coram: Mwondha, Tibatemwa-Ekirikubinza, Tuhaise, Chibita, Musoke, JJ.SC)
CIVIL APPEAL NO. 13 OF 2022
UGANDA POST LIMITED .APPELLANT
VERSUS
CONSOLATE MUKADISI................ ........RESPONDENT
(An Appeal liom the decision of the Court ol'Appcal at Karnpala Civil Appeal No. 25 of
2018 datcd lOtr' March 2022 bclirre Cheborion Barishaki. Musota. Madrama. .l.lA)
.IUDGMENT OF MWONDHA JSC.
I have had the benefit of reading in draft the judgment of my learned sister Justice
Lillian Tibatemwa-Ekirikubinza, JSC. I concur with the analysis and decision, that
this appeal would fail.
I also concur with the orders proposed.
Decision of the Court
Since all the Justices o
proposed therein.
Dated at Kampala this
n the Coram concur, the Appeal is dismissed with the orders
]3
tt
day of ..
t'*Io,.rer:+Sgez:.
Mwondha
Justice of the Supreme Court.
THE REPUBLTC OF UGANDA
IN THE SUPREME COURT OF UGANDA AT KAMPALA
(CORAM: MWONDHA; TIBATEMWA-EKIRIKUBINZA; TUHAISE;
CHIBITA; tr,lUSOKE;
IISC)
CIVIL APPEAL NO.13 OF 2OZZ
UGANDA POST LIMITED
APPELLANT
VERSUS
CONSOLATE MUKADISI
RESPONDENT
[Appeal
nising
from
the decision of tlu Court of Appeal nt Kanrynla before Hon.
]trstices
cheboion Bnrishnki, stephen Musotn nnd Chistopher Mndrnnn,
JlA,
in Cit il Appenl No. 251
of20'18, dnted 10il' March 20221
IUDGME NT OF TUH AISE, ISC.
I have had the benefit of reading in draft the
Judgment
prePared
by
-y
learned sister Hon. Prof.
Justice
Tibatemwa-Ekirikubinza,
ISC.
I agree with her decision and conclusions that the appeal be
dismissed with costs to the Respondent.
lr1
'J=
N!^ur
2023.
Dated at Kampala, this day of
Percy Night Tuhaise
]ustice of
the Supreme Court
THE REPUBLIC OF UGANDA
IN THE SUPREME COURT OF UGANDA
AT KAMPAI.A
(CORAM:
MWONDHA TIBATENTWA.EKIRIKUBINZ,T
TUIIAISE; CHIBIT& MUSOKE;
JI.SC)
CIVIL APPEAL NO: 13 OF 2022
UGANDAPOST LIMITED APPELI.ANT
VERSUS
CONSOI.{TE MUKADISI RESPONDENT
lAn appal fronz the decision of the but of Appal at lGmpah bforc: 6totz. Jwticcs: chchrio,
Baishaki, Stephen Mwoa and Chrisaphcr Madnn4 lI4 in Avil AppI No. lil of l0I8 dared 1O
Merch,20221
ruDG MENT OF CHIB IT,dISC
I have ha<l the benelit ol'rea<ling in drali the
judgment prepiued by my learned
sister, Hon.
.Justit:e ljllian
'l'ibatcmwa-I,lkirikubirua,JSC
ar)d I agree with her
rcasoning arr<l hcr cont lusiorr.
I also aglee rvith the oxlers that she has propose(|.
3a*u
2023 <lay ol'
\-\-
Hon..fustice Mike Chibita
ruSTICE OF TIIE SUPRET,IE COURT
f)ate<l at Kampala this
FJs-lgh4€,r
THE REPUBLIC OF UGANDA
IN THE SUPREME COURT OF UGANDA AT KAMPALA
CIVIL APPEAL NO. 013 OF 2022
UGANDA POST LIMITED: : : :: : : : : : : : : :: : : : : : : : : : : : : : : : : : : :APPELLANT
VERSUS
CONSOLATE MUKADISI: : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : RESPoNDENT
(Appeal from the decision of the Court of Appeal (Cheborion, Musota and Madrama, JJA)
in Civil Appeal No. 251 of 20iB dated
jOh
March, 2022)
CORAM: HON. LADY JUSTICE FAITH MWONDHA, JSC
HON. LADY JUSTICE PROF. LILLIAN TIBATEMWA
_
EKTRIKUBINZA, JSC
HON. LADY JUSTICE PERCY TUHAISE, JSC
HON. MR. ]USTICE MIKE CHIBITA, JSC
HON. LADY JUSTTCE ELIZABETH MUSOKE, JSC
JUD GMENT O F ELIZABETH MUSO KE, JSC
I have had the advantage of reading in draft the;udgment of my learned
sister Prof. Tibatemwa-Ekirikubinza,
ISC and I concur with the analysis
leading to her conclusion that the appeal be dismissed with costs, here and
in the Courts below, to the respondent.
Dated ar Kampata ,n,,
I
Y.. ouy or.
Elizabeth Musoke
lustice of the Supreme Court
fr.-tctr.a-A.,.
2023.
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