Stanbic Bank Uganda Ltd v Asiimwe (Civil Appeal 18 of 2018)
Observed later treatment
Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.
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Holding
The Supreme Court held that although an employer may terminate employment by payment in lieu of notice, where the termination is expressly stated to be for the employee's fault (here, unsatisfactory performance) the employer must accord the employee a hearing; payment in lieu of notice does not cure the breach of natural justice. The finding of wrongful dismissal was therefore upheld (ground 1). The award of general damages was set aside (ground 2) because the respondent had already been paid three months' salary in lieu of notice, fully compensating the termination. The award of aggravated damages of UGX 30,000,000 was upheld (ground 3) given the high-handed and degrading manner of the dismissal. The appeal succeeded only in part.
Outcome
Appeal partly allowed: finding of wrongful dismissal and aggravated damages of UGX 30,000,000 upheld; general damages of UGX 10,000,000 set aside.
Facts
The respondent was employed by Uganda Commercial Bank as a Bank Supervisor; the bank was acquired by the appellant, Stanbic Bank. In December 2002 his terms were varied and a fresh contract retaining him as Supervisor was executed. By letter dated 19 January 2005 his employment was terminated, the letter stating that his performance had been found unsatisfactory, and he was paid three months' salary in lieu of notice. The respondent had, however, been positively appraised in April 2003 and received a salary increment and an award of merit in 2003, with no warning or hearing about his performance before termination. He sued in the High Court for wrongful dismissal; the suit was dismissed. The Court of Appeal found the dismissal wrongful and awarded UGX 10,000,000 general damages and UGX 30,000,000 aggravated damages, plus costs. The bank appealed to the Supreme Court.
Issues
- Whether the respondent was wrongfully dismissed where his employment was terminated, on stated grounds of unsatisfactory performance, with payment in lieu of notice but without a hearing.
- Whether the Court of Appeal erred in awarding general damages of UGX 10,000,000 in addition to the salary already paid in lieu of notice.
- Whether the Court of Appeal erred in awarding aggravated damages of UGX 30,000,000.
Orders
- This appeal is dismissed in respect of grounds 1 and 3.
- The award of UGX 10,000,000 by the Court of Appeal as general damages is set aside.
- The award of UGX 30,000,000 as aggravated damages to the respondent by the Court of Appeal is upheld.
- The appellant shall bear the costs of the appeal in this Court and in the courts below.
Rules and key headnotes
Legislation cited (5)
Cases cited (8)
- Barclays Bank of Uganda v Godfrey Mubiru (Civil Appeal No. 1 of 1998)
- Stanbic Bank Ltd v Kiyemba Mutale (Civil Appeal No. 2 of 2010)
- Betty Tinkamanyire v Bank of Uganda (Civil Appeal No. 12 of 2007)
- Fredrick Zaabwe v Orient Bank & Another (Civil Appeal No. 4 of 2006)
- Father Narsensio Begumisa and 3 Others v Eric Tibebaga (Civil Appeal No. 17 of 2002)
- Ridge v Baldwin and Others [1964] AC 40
- Stroms v Hutchinson [1905] AC 515
- Lees v Arthur Greaves Ltd [1974] ICR 501
Cases citing this judgment (6)
How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.
- Ssemugenyi Stephen Monday v Benle Consult Limited (Labour Dispute Reference 55 of 2023)
- Kangave Mustafa v Pride Microfinance Limited (MDI) (Labour Dispute Reference No. 88 of 2020)
- Kasasira v Yalelo Uganda Limited (Labour Dispute Reference 296 of 2022)
- Egimu v Henly Distributors Uganda Limited (Labour Dispute Reference 178 of 2020)
- Sserunjogi v Guinness Transporters Limited Ta Safe Boda (Labour Dispute Reference 47 of 2022)
- Sserunjogi v Guinness Transporters Limited Ta Safe Boda (Labour Dispute Reference 47 of 2022)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.