Contracts and Dismissals
Written Employment Particulars
An employment contract is any contract, whether oral or in writing, whether expressed or implied, where a person agrees to work for an employer in return for remuneration. It includes a contract of apprenticeship as well.
An employment contract in Uganda can be either written or oral, unless a specific law requires it to be in writing. Both oral and written contracts are treated equally under the law, except where stated otherwise in the Act.
If an employee cannot read or understand the language used in a written contract, the contract must be formally attested. This means a magistrate or labour officer must prepare a written document confirming the contract. Copies of this attestation must be given to both the employer and the employee, while the original is kept by the magistrate or labour officer.
Every employee in Uganda is entitled to receive a written notice from the employer outlining the key terms and conditions of their employment. This must include:
- full name and addresses of the contracting parties;
- date of employment commencement;
- job title;
- workplace;
- wages, including payment intervals and other deductions;
- rate of overtime pay;
- employee’s normal hours of work and the shifts or days of the week on which such work is to be performed;
- the number of days of annual leave and wages during the period;
- terms relating to incapacity for work due to sickness or injury;
- length of notice; and
- sick pay.
Employer is required to provide the above information in a language that a worker can easily understand.
If this information is included in another written document, the employer can refer the employee to that document—provided it's accessible during working hours and in a language the employee can understand.
This notice must be provided no later than 12 weeks after employment begins.
If any changes are made to the employment terms, the employer must provide written notice of those changes. Employers are also required to retain a copy of these particulars and present them to a labour officer upon request.
Source: §24, 25, 58 & 59(b) of the Employment Act 2006, last amended in 2023
Fixed Term Contracts
There is no regulation of fixed-term contracts (their maximum duration or renewals) in the Employment Act. The Employment Regulations of 2011 also do not regulate the use of fixed-term contracts.
However, the employment regulations contain provisions on specific categories of temporary employees, namely casual employees, piece work employees and task work employees, which are mentioned in the employment regulations.
The casual employees may be employed for a maximum of 4 months. After 4 months of employment, he may cease to be a casual employee and be entitled to all rights and benefits as enjoyed by other employees. The piece work employee may be engaged for a maximum period of 3 months unless the person has a contract. An employee may work on the basis of a reasonable daily task (not more than 8 hrs of work) assigned by the employer.
For an employee who works in a seasonal job and is employed by the same employer over multiple seasons, the total period of employment will be counted as continuous, adding up all the time he/she worked in each season.
Ugandan Labour Law does not prohibit hiring fixed-term contract workers for tasks of a permanent nature.
Source: §39-41 of the Employment Regulations, 2011; §85 of the Employment Act 2006, last amended in 2023
Probation Period
A probationary contract is a contract of employment which is not of more than 6 months' duration. It is concluded in writing and states that it is for a probationary period.
The maximum length of the probation period is 6 months, but it may be extended to 1 year with the consent of the worker. An employer may not place the same worker twice under probation. A probationary contract may be terminated by either party after giving at least 14 days’ notice or by the employer after paying 7 days' wages in lieu of notice.
Under the Employment Regulations, an apprentice must first enter into a three-month probationary contract with the employer.
Source: §66 of the Employment Act 2006, last amended in 2023; §36 of the Employment Regulations, 2011
Termination of Employment
Types of Termination
An employment contract may be terminated in the following forms:
- An employer may end a contract with proper notice.
- A fixed-term contract terminates on the expiry of its term or completion of its task, unless it is a renewed-based contract that within one week on the same or better terms.
- An employee may end the contract, with or without notice, due to unreasonable employer conduct or breach of employment contract (constructive dismissal).
- An employee may also terminate the contract after receiving a termination notice but before its expiry.
- Termination happens when an employee reaches normal retirement age.
- If an employer is unable or refuses to pay wages, a labour officer, upon the employee’s application, may declare the contract terminated, preserving the employee’s accrued rights under the law, contract, or other laws.
- Summary termination occurs when an employer dismisses an employee without notice or with less notice than required by statute or contract, justified only if the employee fundamentally breaches their contractual obligations (gross misconduct).
Causes of Termination
Causes of termination depend on the type. For employer-initiated termination with notice, the employer must provide a valid reason, genuinely believed at the time, and prove it in any claim, with a certificate stating the reasons considered.
Summary termination is justified only if the employee’s conduct fundamentally breaches the contract, implying gross misconduct.
Employee-initiated termination may result from unreasonable employer conduct or after receiving a termination notice.
Non-payment of wages allows a labour officer to terminate the contract. Automatic causes include the expiry of a fixed-term/task-based contract or reaching retirement age.
Collective termination involves terminating at least ten employees within three months for economic, technological, structural, or similar reasons.
Employer Actions in Case of Collective Dismissals
For collective terminations of at least 10 employees within three months for economic, technological, structural, or similar reasons, the employer must provide labour union representatives with relevant information at least 4 weeks before terminations begin (unless impracticable), including the reasons, the number and categories of affected workers, and the termination period. The employer must also notify the Commissioner in writing with the same details. Non-compliance constitutes an offence.
Gross Misconduct
Gross misconduct justifying summary dismissal includes:
- Theft or fraud
- Physical assault
- Willful damage to property
- Serious insubordination.
Employers must conduct a fair hearing before dismissal, even in cases of gross misconduct
Unfair Dismissal
A dismissal is unfair if it occurs for invalid reasons or if the employer fails to act with justice and equity. Invalid reasons include pregnancy or related issues, taking entitled leave, labour union membership or activities (outside working hours or within working hours with employer consent), serving as a union or workers’ representative, refusing to join or leave a union, discrimination based on race, colour, sex, religion, political opinion, nationality, social origin, marital status, HIV status, or disability, initiating legitimate complaints or legal action against the employer (unless wholly irresponsible), or temporary absence (up to three months) due to reliable grounds like illness or injury.
A labour officer evaluates fairness based on procedures for deciding, communicating, and appealing the dismissal, the employee’s conduct and capability, compliance with statutory requirements (such as issuing a termination certificate and following procedural rules), and the employer’s past practices in similar cases. Employees with at least 13 weeks of continuous employment (excluding probationary contracts) can file an unfair dismissal complaint within three months, extendable if justified, in compliance with labour union agreements.
Remedies for Unfair Dismissal
If a court or labour officer finds a dismissal unfair, remedies include reinstatement or compensation. Reinstatement may be ordered unless the employee declines, continued employment is intolerable, reinstatement is impractical, or the unfairness stems solely from procedural flaws. A labour officer may award compensation as specified, subject to relevant conditions.
For unjustified summary dismissal, a labour officer may order the employer to pay net wages for the notice period, proportional wages for incomplete service, and losses from dismissal until the notice period’s end. Failure to follow notification and hearing procedures incurs a penalty of four weeks’ net pay, which can be ordered alongside other remedies.
An employer and employee may agree in writing, signed by both, to waive termination complaints, provided a labour officer certifies the agreement’s fairness and confirms payment of the employee’s entitlements.
Source: §30, 64, 65, 67-70, 72, 74, 76, 79, 80 & Schedule 2 of the Employment Act 2006, last amended in 2023
Regulations on Employment Security
- The Constitution of Uganda, 1995 (revised in 2005)
