Hire in Uganda

Employment contracts in Uganda can be set for open-ended or fixed-term, part-time or full-time.

Employers in Uganda can offer permanent positions to contract workers without any maximum duration or renewal requirements. However, there are provisions in place for certain types of temporary workers, such as casual workers, piece workers and task workers.

Generally, temporary workers can be employed for a maximum duration of four months. If a casual employee works for four months continuously, they are no longer considered a casual employee and is entitled to the same rights and benefits as other employees.

For piece-work employees without a contract, the maximum period of employment is three months.

There are no specific regulations on employee reference and background checks by employers,. These types of pre-employment checks are commonplace in many industries.

The maximum probation period in Uganda is six months and can be extended to one year with the employee’s consent. An employee may not be placed on probation twice by the same employer. During the probation period, either the employee or employer can terminate the employment contract by giving 14 days’ notice or by the employer paying seven days’ wages in lieu of notice.

In Uganda, the standard schedule for employees is eight hours per day and 48 hours per week. If an employee works overtime, the total working hours should not exceed 10 hours per day or 56 hours per week, except for shift workers.

Employees are also entitled to have 24 hours of uninterrupted rest each week, which can be taken on a customary rest day (Sunday) or a day agreed upon by both the employer and the employee.

If employees work more than eight hours a day or 48 hours a week, they should receive a minimum of 1.5 times their regular hourly rate on weekdays and two times their normal hourly rate on public holidays.

Employers cannot terminate employees at will in Uganda and must have legitimate grounds for termination. Prior to termination, a fair hearing/consultation procedure should be followed, with the reasons for termination being explained.

Employers who terminate unfairly must compensate the affected employee with a basic compensation order for four weeks’ salary. If an employee is served a notice of termination by the employer, he or she may terminate the contract of employment before the end of the notice period without having to compensate the employer for the remainder of the notice period.

The required notice period depends on the employee’s length of service as follows:

• Less than six months of service: no note requirements
• Service of more than six months but less than one year: two weeks
• Service of more than 12 months but less than five years: one month
• Service of more than five years but less than 10 years: two months
• Service of 10 years or more: three months

Payment in lieu of notice is allowed; however, the employer must obtain the employee’s consent before making the payment. If the employee does not consent, the employer must allow the employee to continue working until the end of the notice period.

Employers are required to provide severance pay in the following circumstances:

• Cases of unfair dismissal
• If an employment contract is terminated due to the employer’s insolvency or death
• If the employee dies while in the employ of the employer
• If the employee terminates the contract due to physical incapacity

To qualify for severance pay, the affected employee must have completed a minimum of six months of continuous service. The amount of severance pay is negotiated between the employer and the employee or the labor union representing the employee.

Restrictive covenants are only permissible in narrow and justifiable circumstances. The duration is usually no longer than six to 12 months.

Data Protection in Uganda is governed by the Data Protection and Privacy Act 2019, which requires employers to obtain explicit consent from employees before collecting and processing their personal data.

Employers must pay their employees their remuneration promptly. Hourly and daily workers must receive their pay at the end of the current day or week, while those who are paid on a biweekly or monthly basis must be paid at the end of every fortnight or month.

Employers are required to provide itemized payslips in writing to all employees. These payslips should show the employee’s gross compensation and provide information about the amount and purpose of any deductions.

Employees are entitled to a minimum of 21 days of paid annual leave, accruing at a rate of seven days for each continuous period of four months of service. It is not valid for an employee to relinquish their right to annual leave in exchange for monetary compensation. Failure to apply for leave within a certain year implies forfeiture of the employee’s right to leave.

In the event of termination, an employee is entitled to compensation for any unused annual leave.

If an employee is unable to work due to illness, they are entitled to full pay and other benefits for the first month of absence. This applies to employees who work at least 16 hours per week and have completed at least one month of continuous service.

If an employee is still unable to work due to sickness at the end of the second month, the employer may terminate their employment.

To be eligible for sick pay, employees must promptly notify their employer of their absence and provide a written certificate from a qualified medical practitioner.

Employees are entitled to three paid days of compassionate leave on a single occasion and a maximum of six paid days in a given calendar year due to the death of a family member or dependent relative.

Maternity Leave

Female employees are entitled to 60 working days of paid maternity leave. They must provide at least seven days written notice before beginning their leave and returning to work afterward. Maternity leave can be extended by 20 additional workdays in exceptional circumstances, such as illness related to pregnancy or childbirth.

Paternity Leave

Male employees are entitled to four paid days of paternity leave per year following the birth of a child or a miscarriage of a wife.

There are 15 public holidays in Uganda. If employees are required to work on public holidays, they are entitled to compensation equal to 200% of their regular wage.