NIZIGAMA v. SONARWA

NIZIGAMA v. SONARWA

The Supreme Court held that severance pay and damages for unlawful dismissal are separate entitlements under Rwandan labour law. The deduction of severance from damages was unlawful. The High Court also erred by awarding SONARWA more costs than it requested. The applicant is entitled to full damages for unlawful...

Source-derived case information.

Citation
RS/INJUST/RSOC00009/2024/SC
Parties
Applicant: Nizigama Félicité; Respondent: SONARWA General Insurance Company Ltd
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
5 December 2025
Case Number
RS/INJUST/RSOC00009/2024/SC
Procedural Posture
Labour Dispute / Supreme Court Review on Grounds of Injustice
Outcome
Applicant's review allowed; High Court decision overturned.
Legal Topics
Unlawful Termination, Severance Pay, Damages for Wrongful Dismissal, Procedural Fairness in Employment Disputes
Source Language
rw
Labour Law Unlawful Termination Severance Pay Damages for Wrongful Dismissal Procedural Fairness in Employment Disputes

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Parties

Nizigama Félicité

Applicant

SONARWA General Insurance Company Ltd

Respondent

Procedural Posture

Labour Dispute / Supreme Court Review on Grounds of Injustice

  1. 1 Whether an employee who has received severance pay is also entitled to damages for unlawful dismissal
  2. 2 Whether the High Court awarded the respondent more costs than requested
  3. 3 Whether the respondent's counterclaim was properly admitted

Ratio Decidendi

The Supreme Court held that severance pay and damages for unlawful dismissal are separate entitlements under Rwandan labour law. The deduction of severance from damages was unlawful. The High Court also erred by awarding SONARWA more costs than it requested. The applicant is entitled to full damages for unlawful dismissal, severance pay already received, and appropriate legal costs.

Court Disposition

Applicant's review allowed; High Court decision overturned.

Orders

  • SONARWA to pay Nizigama Félicité damages for unlawful dismissal of 6,439,950 Frw without deduction of severance pay.
  • SONARWA to pay Nizigama Félicité 1,000,000 Frw as advocate fees and 500,000 Frw as legal costs.