SONARWA v. KABANDA

SONARWA v. KABANDA

The Supreme Court held that compensation for unlawful dismissal must be calculated on the net salary actually received by the employee, not the gross salary, and that the High Court erred in using the gross salary. The correct net salary was determined from payslips and bank records, and the compensation was...

Source-derived case information.

Citation
RS/INJUST/RSOC00008/2024/SC
Parties
Applicant: Sonarwa General Insurance Company Ltd; Respondent: Kabanda Agnès
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
21 November 2025
Case Number
RS/INJUST/RSOC00008/2024/SC
Procedural Posture
Labour Dispute / Supreme Court Review of High Court Judgment on Grounds of Injustice
Outcome
partially allowed
Legal Topics
Unlawful Dismissal, Calculation of Compensation, Net Salary Vs Gross Salary, Employment Contract Termination
Source Language
rw
Labour Law Unlawful Dismissal Calculation of Compensation Net Salary Vs Gross Salary Employment Contract Termination

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Parties

Sonarwa General Insurance Company Ltd

Applicant

Kabanda Agnès

Respondent

Procedural Posture

Labour Dispute / Supreme Court Review of High Court Judgment on Grounds of Injustice

  1. 1 Whether compensation for unlawful dismissal should be calculated on net salary or gross salary
  2. 2 Whether the High Court erred in its calculation of compensation due to the employee

Ratio Decidendi

The Supreme Court held that compensation for unlawful dismissal must be calculated on the net salary actually received by the employee, not the gross salary, and that the High Court erred in using the gross salary. The correct net salary was determined from payslips and bank records, and the compensation was recalculated accordingly, deducting amounts already paid as severance.

Court Disposition

partially allowed

Orders

  • The High Court judgment is varied only as to the amount of compensation for unlawful dismissal.
  • SONARWA is ordered to pay Kabanda Agnès compensation for unlawful dismissal in the amount of 2,461,632 Rwandan Francs.