Uganda Labour Laws

  1. Uganda Labour law highlights

    The Employment Act of 2006 sets the minimum standards of employment standards in Uganda. It provides that a person shall not be employed under a contract of service except in accordance with the provisions of the Act. It also prohibits the Employment of children under the age of 12 years

  2. Probation

    The maximum period of probation in Uganda is 6 months but which can be extended in writing to one year giving reasons for the extension

  3. Employee Leave

    1. Normal/Annual Leave in Uganda

      1. Number of days:

        Seven (7) days for every four consecutive months.

      2. Leave allowance.

        There is no provision on leave allowance hence leave allowance is at employer discretion

      3. Compensation during leave:

        Employee is entitled to full pay during the leave period.

    2. Sick leave in Uganda

      An employee who has served at least one month of continuous service is entitled to sick leave

      1. Duration.

        Two months in any one calendar year one month on full pay and one month with no pay.

      2. Procedure for getting sick leave.

        The employer may require a medical certificate from a qualified medical practitioner before granting sick leave or at the earliest opportunity but the sick must be supported a sick off certificate issued by a qualified medical doctor.

      3. Compensation during sick leave.

        For the first month’s absence from work he or she is entitled to full wages and every other benefit for the first month and nil salary and benefits in the second month. If at the expiration of the first month the sickness of the employee still continues, the employer is entitled to terminate the contract of service on complying with all the terms of the contract of service

    3. Maternity leave in Uganda

      A female employee who has a valid contract of service is entitled to maternity leave. The law does not provide a minimum period of service to qualify for maternity leave.

      1. Duration

        The female employee Shall have the right to a period of sixty working days leave from work of which at least four weeks shall follow the childbirth or miscarriage.

      2. Compensation during leave

        A female employee shall be entitled to full pay during maternity leave.

    4. Paternity leave in Uganda

      A male employee whose official spouse gives birth shall be entitled to paternity leave

      1. Duration

        The employee shall be entitled to four (4)working days Leave yearly.

  4. Public Holidays in Uganda

    Employees shall be released on paid holiday during public holidays. Official public holidays in Uganda are;

    1. Official public holidays

      1. New Year’s Day – 01 January
      2. NRM Liberation day – 26 January
      3. International Women’s day – 08 march
      4. Good Friday – (exact day Varies)
      5. Easter Monday – (exact day varies)
      6. Labor Day – 01 May
      7. Martyr’s day – 03 June
      8. National Heroes’ Day – 09 June
      9. Eid al- Fitr (end of Ramadan, exact day varies)
      10. Independence Day – 09 October
      11. Eid al-Aduha (Feast of the sacrifice, exact day varies)
      12. Christmas Day – 25 December
      13. Boxing Day – 26 December
    2. Compensation on public holidays

      An employee shall be entitled to a day’s holiday with full pay on every public holiday during his or her employment. An employee who works on a public holiday receives, in respect of such work, pay at not less than double the rate payable for work on a day that is not a public holiday, that employee shall not be entitled to a day’s holiday with full pay in lieu of the public holiday

  5. Working hours and overtime in Uganda

    1. Working hours

      The maximum working hours for employees shall be forty eight (48) hours per week.

    2. Overtime

      Working hours shall not exceed forty eight hours per week and any extra hours shall be deemed to be overtime

    3. Compensation for overtime

      Where hours in excess of eight hours per day or forty eight hours per week are worked, they shall, in the absence of a written agreement to the contrary, be remunerated at the minimum rate of one and a half (1.5) times of the normal hourly rate if the overtime is on the normal working days, and at two (2) times the hourly rate where the overtime is worked on gazetted public holidays.

  6. Training and skills development in Uganda

    There is no Law Regulating occupational or on job training in Uganda. The only training mandatory in Law in Uganda is Occupational Safety Training.

    In accordance with the Occupational Safety and Health Act, it is the responsibility of an employer to provide instruction, training and supervision as is necessary to ensure health and safety at work of his/her workers.

    1. Key highlights

    2. Funding training and skills development

  7. Remuneration

    1. Minimum wage in Uganda

      Uganda’s minimum wage is 6,000 Ugandan shillings per month for all workers. Uganda’s minimum wage was last amended on 1st-Jan-1884 and has largely been overtaken by time and actual wages for lowest paid workers are much higher than this

    2. Other regulations on income in Uganda

      Pay as You Earn (PAYE) – Filing by the employer is on a monthly basis by the 15th day of the month subsequent to the month in which payment was made. PAYE rates are calculated as follows;

      Resident individuals;

      1. Less 235,000 shs – nil
      2. Above 235,000 but Less 335,000 – 10% of the amount exceeding 235,000shs
      3. Above 335,000 but < less 410,000 – 20% of amount exceeding 335,000 shs.
      4. Above 410,000 shs – 25,000 shs plus 30% of amount exceeding 410,000 shs.

      Non- resident individuals

      1. Less 335,000 shs – 10%
      2. Above 335,000 but less 410,000 – 33,500 shs plus 20% of amount exceeding 335,000 shs.
      3. Above 410,000 shs – 48,500 shs plus 30% of amount exceeding 410,000 shs

      Where the chargeable income of an individual exceeds Ushs. 10,000,000, an additional 10% on the amount exceeding Ushs 10,000,000 per month.

      Individual Income Tax returns are filed by 30th September (1st Provisional return), 30th June (amended provisional Return) and by the end of six months after the end of the year (Final Return).

      The corporate tax rate under the Income Tax Act is 30% for resident companies and branches of foreign companies.
      The rate for individuals ranges from 10% to 45% depending on their chargeable income.

    3. Statutory Benefits in Uganda

      1. Social Security/Pension

        A worker contributes 5% of his gross monthly earnings while an employer contributes 10% of a worker’s gross monthly earnings.

      2. Medical

        There is no mandatory medical arrangement in Uganda

  8. Harassment at the Work Place under Uganda Law

    1. Discrimination

      Discrimination in employment shall be unlawful and for thepurposes of this Act, discrimination includes any distinction, exclusion or preference made on the basis of race, color, sex, religion, political opinion, national extraction or social origin, the HIV status or disability which has the effect of nullifying or impairing the treatment of a person in employment or occupation, or of preventing an employee from obtaining any benefit under a contract of service.

      It shall be the duty of all parties, including the minister, labor officers and the Industrial Court to seek to promote equality of opportunity, with a view to eliminating any discrimination in employment

    2. Sexual Harassment

      Sexual harassment at workplace is prohibited by law. Any person who commits any act of sexual harassment is liable to imprison for one year.

      Every employer who employs more than twenty five employees is required to have in place measures to prevent sexual harassment occurring at their work place.

  9. Retirement in Uganda

    Official age of normal retirement in Uganda is 55 years which is a policy rather than a Legal matter as it is not provided in Law. There is no early retirement age in Law or by practice in Uganda

    1. Lay off/Redundancy law highlights in Uganda

      1. Termination
      2. Notice of termination
    2. Termination of Contract in Uganda

      The period of notice period depends with the length of contracts follows;

      1. Not less than 2weeks where employment is of more than 6months but less than 1year
      2. Not less than 1month where employment is of more than 12months but less than 5years
      3. Not less than 2months where employment is of 5 years but less than 10years
      4. Not less than 3months where employment is of more than 10years.
    3. Dismissal in Uganda

      An employer is entitled to dismiss summarily, and the dismissal is justified, where the employee has, by his or her conduct fundamentally broken his or her obligations arising under the contract of service.

      The law not list those grounds

      The employer shall, before reaching a decision to dismiss an employee establish the offence was committed beyond any reasonable doubt and give the employee a fair opportunity to defend himself and to appeal against the dismissal.

    4. Lay off/Redundancy law highlights in Uganda

      Employment Act 2006 does not specifically define lay off and redundancy and therefore seem to classify it as termination

      1. Criteria for Layoff/Redundancy in Uganda.

        Since this form of separation is not defined by law, the Employer must follow the criteria set for termination which is existence of a fair ground to terminate the contract

      2. Procedure for layoff redundancy/layoff Uganda

        There is no procedure defined in Law

      3. Terminal/Severance Pay Uganda.

        An employee who has worked for at least 6 months is entitled to severance pay in case of Termination or unfair dismissal.

        The Law requires the employee and employer to negotiate severance pay.

        In the absence of such a negotiated agreement the determination may be done by a labour officer

  10. Health and Safety

    1. Health and Safety Law in Uganda

      Occupational Health and Safety in Uganda is Regulated by the Occupational Health and Safety Act of 2006

    2. Death and Disability Compensation in Uganda

      The Compensation for Injury death or disability in Uganda is regulated by the Workman Compensation Act of 2006

      Under this Act employers are responsible for full compensation for injuries, incapacity or death resulting from accidents or occupational disease.

      Employers are required to take out a suitable Insurance.

      1. Death compensation

        Compensation for death as result of industrial accident is 60 months salary

      2. Disability compensation.

        Compensation for disability will depend on degree of disability as assessed by a Medical Practitioner.

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