CORPORATE & COMMERCIAL IA

EMPLOYMENT
LAW APPLICABLE:
1. The 1995 Constitution of the Republic of Uganda
2. The Contract Act, Cap. 284
3. The Companies Act, Cap. 106
4. The Employment Act, Cap. 226
5. The Employment Regulations S.1 14/77
6. Civil Procedure Act Cap. 282
7. Civil Procedure Rules S.1 71-1
8. Common law/Case and Doctrines of Equity
9. The Evidence Act, Cap. 8
10. The Uganda Citizenship and Immigration Control Act, Cap. 313
11. Workers Compensation Act Cap 233
12. Workers Compensation Regulations SI 225-1
13. The Labor Disputes (Arbitration and Settlement) Act, Cap. 227
14. The Children’s Act, Cap. 62
15. The Occupational Safety and Health Act, Cap. 231
16. the Arbitration and conciliation Act, Cap. 5

EMPLOYMENT CONTRACTS
Section 2 of the Employment Act, defines a Contract of service to mean any contract, whether
oral or in writing, whether express or implied, where a person agrees in return for remuneration, to
work for an employer and includes a contract of apprenticeship.
Section 2 of the Employment Act, defines A contract of apprenticeship, means a contract of
service - (a) where there is an obligation on the employer to take all reasonable steps to ensure that
the employee is taught, and acquires, the knowledge and skills of that industry, by means of practical
training received in the course of the employee's employment; and (b) where there is a provision for
formal recognition of the fact that the employee has acquired the knowledge and skills intended to be
acquired when the employee has done so.
Section 2 of the Employment Act, defines an employee as any person who has entered into a
contract of service or an apprenticeship contract, including, without limitation, any person who is
employed by or for the Government of Uganda, including the Uganda Public Service, a local authority
or a parastatal organisation but excludes a member of the Uganda Peoples' Defence Forces.
Section 2 of the Employment Act, defines an employer any person or group of persons, including a
company or corporation, a public, regional or local authority, a governing body of an unincorporated
association, a partnership, parastatal organisation or other institution or organisation whatsoever, for
whom an employee works or has worked, or normally worked or sought to work, under a contract of
service, and includes the heirs, successors, assignees and, transferors of any person or group of
persons for whom an employee works, has worked, or normally works.

In Ready Mixed Concrete Ltd v Minister of Pensions & National Insurance (1968), a contract of
service exists if – (a) the worker provides their own skill in exchange for remuneration, (b) the employer
exercises sufficient control over the worker, an employee is one whose employer controls both the work
and how it is performed, (c) the terms of the contract are consistent with the employment.

Stevenson, Jordan & Harrison Ltd v MacDonald & Evans (1952), the court held that an
employee’s work is an integral part of the business, whereas an independent contractor’s work is
merely accessory.

Godfrey Kyamukama v Makerere University Business School Labour Dispute Reference No. 147
of 2019 defines a contract for services as where the employer contracts another to perform a specified
duty where the contractor is specialized and possesses skills and resources as to perform the work that
the employer would ordinarily subject him or her to direction, control and supervision. Here if anything
goes wrong, the independent contractor is liable.

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Young & Wood Ltd vs West [1980] IRLR 201, for an independent contractor to qualify as such, he
must be in business for his own. The factors which may be of importance are whether the man
performing the services provides his own equipment, whether he hires his own helpers, what degree of
financial risk he takes, what degree of responsibility for investment and management he has.
The employment relationship is one where one enters at his or her fee will. PRINTING AND
NUMERICAL REGISTERING CO. –VS- SAMPSON (1875) LR19 E.g. 462 by SIR GEORGE JESSEL,
where he held that Public Policy required that men of full age and competent understanding shall have
the almost liberty in contracting and that their contracts, when entered into freely and voluntarily shall
be held sacred and shall be enforced by Courts of justice.
CHARACTERISTICS OF A CONTRACT OF EMPLOYMENT.
i. Control; manifests in how the work is to be done, at what time, exhibiting a certain form of character
including the dress code, salary scale etc.
ii. Right to terminate; generally, an employer has a right to terminate. Previously there was no
obligation to give reasons for termination, but now the law emphasizes procedural fairness.
iii. Notice; generally, in a contract of employment, termination is preceded by a notice. Notice arises as
a result of contract or as a result of law.
iv. Summary termination and summary dismissal; in summary dismissal, you are very disgraceful
person and affects entitlement under Pensions Act. Before you summarily dismiss, you must be sure
about the justification of the dismissal.

FORMALITIES OF A CONTRACT OF EMPLOYMENT

Contract of service can be either in writing or oral.

Section 25 of the Employment Act, (1) A contract of service made with an employee who is unable
to read or understand the language in which the contract is written shall be attested to.

THE CONTENTS OF AN EMPLOYMENT CONTRACT.

1. The Name of the Employer, undertaking and place of employment,

Section 32 of the Employment Act, makes it a perquisite for a prospective employee wishing to enter
a contract of service to be first examined by a medical practitioner at the expense of the Employer.

APPLICABILITY OF THE EMPLOYMENT ACT

Section 1 (1) of the employment act, the act applies to all employees employed by an employer under
a contract of service.

Under Section 1 (2), of the act does not apply to – (a) Employers and their dependent relatives when
dependent relatives are the only employees in a family undertaking as along as the total number of
dependent relatives does not exceed five, (b) The Uganda peoples defense forces other than their
civilian employees.

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Section 2 of the Employment Act, defines a dependent relative to mean a member of an employee’s
family who substantially depends on that employee for his or her livelihood.

Performing Rights Society Vs Mitchell and Booker, the court looked at the facts that regular hours
where worked each day by the band, there was a fixed period of employment, the band had been told
where they should work, and they had exclusivity of service, there was also a right to dismiss the
band for the breach of any fair instructions or requirement. In short, the court looked at the 'nature and
degree of detailed control over the person alleged to be a servant' and the band was held to be an
employee.
Hawley v Luminar Leisure plc [2005] EWHC 5 (QB), the most satisfactory [test] by which to
ascertain who is the employer at any particular time, is to ask who is entitled to tell the employee the
way in which he is to do the work upon which he is engaged & it is not enough that the task to be
performed should be under his control, he must control the method of performing it.
If employer only determines what is done not how, then the worker is independent contractor.
Honey Will & Stain Ltd v. Lakin Brothers Ltd [1934] 1 KB 19 Slaser LJ said… “the determination
whether the actual wrong doer is a servant or agent on the one hand is or… contractor. depends on
whether or not the employer only determines what is to be done but retains the control of the actual
performance in which case the doer is a servant or agent… if
DISTINCTION BETWEEN CONTRACTS FOR SERVICES AND A CONTRACT OF SERVICE.
A contract for services gives rise an employer-independent contractor relationship while a contract of
services once established creates an employer- employee relationship.
Why the distinction is important.
1. Vicarious liability. Employers are liable for the torts of their employees committed in the course of
employment. The employer except in certain special circumstances is not vicariously liable for the tots
of an independent contractors committed during the execution of their work.
2. Compensation for injury. Under The workers compensation Act Cap.233, employees are
generally entitled to compensation for injuries sustained in the course of employment. In an employer-
independent contractor relationship, the employer has no obligation to compensate the independent
contractor for injuries sustained during work.
3. Mandatory contribution. Employers are by law mandate to remit certain contributions on behalf of
employees for example PAYE, NSSF contributions under sections 11 and 12 of the NSSF act.
These deductions are permitted under S.45 of the Employment Act.
4. Employment benefits. Employment benefits such as sick leave among others is stipulated under
THE EMPLOYMENT ACT CAP 226 only accrue to employees and not independent contractors.
EMPLOYMENT CONTRACTORS.
S.22 of THE EMPLOYMENT ACT CAP 226 provides that no person shall be employed under a
contract of service except in accordance with the act. Further section 26(1) of THE EMPLOYMENT
ACT CAP 226 bars the exclusion of any provision of THE EMPLOYMENT ACT CAP 226 in any
contract of service and states that such agreement is null and void. However, in sub-section 2, the
act allows for the parties to vary the provisions of the act in favor of terms and conditions which are
more favourable to the employee than those stipulated in the act.
Requirements of an employment contract.
As noted earlier, these are governed by the CONTRACTS ACT and THE EMPLOYMENT ACT with
each creating various requirements.
Under S.9 of the Contracts Act, the requirements are that there is
1. An offer and acceptance
2. Consideration
3. Lawful subject matter
4. Capacity to contract
5. Intention to be legally bound.
1. Offer and acceptance.

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Usually, the offer is made during the interviews or through a letter of appointment after the interviews.
Negotiation if any are made and concluded during this period usually relating to the salary, other
employment benefits and the starting date.
2. Consideration.
The consideration in employment contracts is the employers promise to pay the agreed wages in
return for the employee performing a particular task. IN DELANEY V STAPLES (1992) IRIR 191, Lord
Browne Wilkinson was of the view that the essential characteristic of wages is that they are
contributions for work done or to be done under a contract of employment. If payment is not referable
to an obligation on the employee under a subsisting contract of employment to render his services, it
does not fall within the ordinary meaning of the word wages.
S.40 (1) of THE EMPLOYMENT ACT CAP 226 provides that wages have to be paid in legal tender.
Although the section also allows the employer to pay by cheque, postal order, money order or by
direct payment to employees’ bank account having sought the consent of the employee to do so.
3. Capacity.
Section 10(1) of the contracts Act provides that a person has capacity to contract where such a
person is of 18 years and above, of sound mind and not disqualified from contracting by any law to
which he or she is subject.
Section 10(2) goes further to stipulate that a person of 16 years plus has the capacity to enter into a
contract of employment as provided under Article 34(4) and (5) of the 1995 constitution of the
republic of Uganda.
4. The other requirement of a contract of service under THE EMPLOYMENT ACT CAP 226 are
stipulated under section 58 of the employment Act a contract and these include the following
1. Full names and address of the parties.
2. The date on which employment began
3. Title of the job the employee is employed to do
4. Place where the employee’s duties are to be performed
5. Wages which the employee is entitled to receive or the means by which they can be
calculated intervals they are too paid in, the deductions or other conditions to which they shall
be subject.
6. The rate of any overtime pay applicable to the employee
7. The employee’s normal working hours and the shifts or days of the week on which such work
is to be performed.
8. The number of days annual leave to which the employee is entitled and their entitlement
during such leave.
9. The terms or conditions relating to incapacity for work due to sickness or injury, including a
provision for sick pay.
10. Length of the notice of termination
11. Terms and conditions relating to incapacity for work due to sickness or injury, including any
provision for sick pay.
5. Attestation.
S.25 of THE EMPLOYMENT ACT CAP 226 requires an employment contract made with an
employee who is unable to read or understand the language in which the contract is written to be
attested to. Attestation is by means of a written document drawn up by the magistrate or Labor officer.
1. Oral and written contracts.
S.24 states that a contract of service other than a contract which is required by THE EMPLOYMENT
ACT CAP 226 or any other act to be in writing maybe made orally and except as otherwise provide,
the act applies equally to oral and written contracts.
2. Written particulars
S.58 (1) of THE EMPLOYMENT ACT CAP 226 requires employers to provide employees with a
notice in writing specifying the particulars of employment. The notice is called a statement of written
particulars.

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The notice must pursuant to S.58 (3) of THE EMPLOYMENT ACT CAP 226 be given by the employer
to the employee not later than 12 weeks after the date of which employment commenced.
The statement of written particulars is under S.59 (a) of THE EMPLOYMENT ACT CAP 226
admissible evidence in courts of law of the existence of the terms and conditions about which there is
a dispute.
Under S.59 (b) of the employment act, the written statement of particulars creates a rebuttable
presumption that the terms and conditions of employment are accurately stated in the written
particulars and in any notified changes.
In SYSTEMS FLOORS (UK) LTD V DANIEL (1982) ICR 54, Browne- Wilkinson j stated that the
written statement of particulars provides very strong prima facie evidence of what were the terms of
the contract between the parties but does not constitute a written contract between the parties. Nor
are the statements conclusive terms; at most they place a heavy burden on the employer to show that
the actual terms of the contract are different from those which he/she has set out in the statutory
statement.

Employment contract.
THE REPUBLIC OF UGANDA
IN THE MATTER OF THE EMPLOYMENT ACT CAP 226 AND
IN THE MATTER OF AN EMPLOYMENT CONTRACT
EMPLOYMENT CONTRACT
This contract is made at Kampala on this 10th day of February 2020.
Between
BHALO TRAVELS LIMITED of P.O BOX 869, Kampala, Uganda, (Hereinafter referred to as ‘THE
EMPLOYER” of one part:
And
FREDERICK HASAHYA of P.O BOX 569, Kampala, Uganda, (Hereinafter referred to as ‘the
employee’’) of the other part:
WHEREAS.
1. The employer intends to engage the services of the employee and the employee is interested and
desirous of offering his services to the employer.
2. The employer having represented to the employer that he has the required skills and expertise
3. The employee is desirous of taking up the employment and to provide the services on the terms
and conditions set forth in this contract.
NOW THEREFORE, THIS CONTRACT IS WITNESSETH AS FOLLOWS:
1. JOB TITLE:
The employer shall employ the employee in the capacity of sales person for a period of 2 years from
the date of execution of this contract.
2. PLACE OF WORK.
2.1 the employee shall sell he employers’ products only within the required boundaries as stipulated in
the first schedule to this contract
2.2 the employee shall not sell the products outside the stipulated boundaries in clause
2.2.1 except with the express written permission from the marketing manager
2.3 The employer reserves the right to relocate the employee to another location upon issuance of a 7
days’ notice communicating the intention to transfer the employee.

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3. DUTIES/RESPONSIBILITIES
The employee shall be expected to:
a) Diligently and faithfully perform the duties of a sales person and such other duties as may be
required of them by the employer from time to time with a view of making profit for the employer.
b) Devote substantially the whole of their time and attention while at work to discharge of their duties
which are clearly spelt out in the employee’s job description specified in the second schedule of this
contract.
c) Perform and meet daily, weekly and monthly performance targets that shall be set by the employer
through the marketing manager or any duly authorized agent and these targets maybe adjusted by
the management at any time without the employee’s consent.
d) Failure to meet the target stipulated in clause 3(a) may lead to termination of this contract.
e) At all times comply with all other regulations and guidelines set by the employer
4. PERFORMANCE APPRAISALS.
4.1 The employer shall conduct performance appraisals through the employer’s designated
supervisor as a means of monitoring and evaluating the employee’s performance for the year.
4.2 The final annual performance report shall be the only basis for promotion from the sales person
position to senior sales person position or renewal of the employee’s contract.
5. RENUMERATION
5.1 The employee shall be entitled to Gross monthly salary of UGX.600,000 (six hundred thousand
shillings only)
5.2 The employee’s remuneration shall be paid into their bank account
6. COMMISSION.
6.1 the employer shall pay to the employee a commission on all sales made
6.2 the commission payable on each sale of the employer’s product made shall be 8% of the total
amount paid on the product.
7. HOURS AND DAYS OF WORK.
7.1 The employee shall be expected to work for 8 hours per day for 6 days of the week
7.2 The working hours shall start at 8;00 am and end at 5;00pm with the time between 1:00pm and
2:00pm excluded for a lunch break.
7.3 The days of work shall be Monday to Saturday.
7.4 In case the employee reports to work later than 9:00am or leaves the work place earlier than
4:00pm, they shall be paid a wage for half a day.
7.5 The employee may be required to work past the set working hours where there is a target that
needs to be met and the employer shall pay the employee for the overtime in such instances.
7.6 The employer reserves the right to call an employee to work on a weekly off in which case the
employee shall be paid in the equivalent of 1.5 days wage.
8. ANNUAL LEAVE.
The employee shall be entitled to 21 days of paid annual leave or payment in lieu of the leave
9. SICK LEAVE
The employee shall be entitled to sick leave as stipulated in the employment act
10. EMPLOYMENT BENEFITS.

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The employee shall be entitled to all benefits allowing to employees in the position of a sales person
as stipulated in the human resource manual of the employer.
11. MATERNITY OR PATERNITY LEAVE.
The employee shall be entitled to a maternity for a period stipulated in THE EMPLOYMENT ACT CAP
226or a paternity leave for the duration stated in the employment act.
12. CONFIDENTIALITY.
12.1 in the course of employment under their contract, the employee will have access to and be
entrusted with information in respect of the business, dealings, transactions and affairs of the
employer.
12.2 The employee shall not during or after the period of employment under this contract, divulge and
shall prevent the use, disclosure or publication to any unauthorized person whatsoever of any
confidential information concerning the business, dealings, transactions and affairs of the employer.
13. TERMINATION OF EMPLOLYMENT.
13.1 This employment shall terminate:
a) Automatically on completion of the 2 years herein stated unless renewed with express consent in
writing of both parties per this contract.
b) By either party by giving a written notice to the other party of not less than one month
13.2 The employer reserves the right to terminate the employee’s contract on grounds of misconduct
or poor performance and giving the employee a one months’ notice or a month’s salary in lieu.
13.3 The acts constituting misconduct are stipulated in the employer’s human resource manual.
14. SUSPENSION
14.1 The employer may suspend the employee from duty pending investigation into the matter leading
to such suspension.
14.2 The suspension shall not exceed 21 days consecutive days.
14.3 The employee shall be entitled to half pay for the duration of the suspension
14.4 The employer shall accord the employee a fair hearing before an independent tribunal appointed
by the employer and
a) If found that the reasons for the suspension are justified, the employee shall be dismissed from
employment
b) If found that the reasons for the suspension are unjustified, the employee shall resume his/her
duties.
15. SUMMARY DISMISSAL
The employer reserves the right to summarily dismiss the employee for any gross misconduct as
stipulated in employer’s human resource manual.
16. RENEWAL OF THE CONTRACT.
16.1 This contract maybe renewed pursuant to the provisions of this contract at the discretion of the
employer depending on work availability and the employee’s performance appraisal report.
16.2 The renewed contract shall be in the form of a new contract signed between the parties and it
shall be the employee’s duty to ensure that they obtain a new contract as and when this one expires.
17. DISPUTE RESOLUTION.
17.1 All disputes arising under this contract shall be resolved in line with the established company
policies and rules.
17.2 Should the parties fail to amicably resolve the dispute, then a mediator from the CADER
agreeable to both parties shall be appointed to resolve the dispute.

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18. LAW APPLICABLE.
This contract shall be governed by the laws of Uganda.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be signed in their respective
names as of the day and year first above mentioned.
Signed for and on behalf of the employer
....................................................
HEAD OF HUMAN RESOURCE
FOR BHALO TRAVELS LIMITED.
Signed by the said
NAME..............................................
SIGNATURE.........................................
EMPLOYEE. ...........................................
In the presence of
NAME.........................................................
PROFESSION.....................................................
SIGNATURE......................................................
DOCUMENTATIONAL AND INFORMATION CONTAINED IN A HUMAN RESEOURCE FILE.
1. Human Resource Manual.
Is a document detailing an organizations policy regarding employee management and the relationship
between managers and employees.
Provisions to include in the HR Manual
(i) Human Resource Management Policy. This clause is intended to guide staff regarding their
rights and obligations during the course of their employment.
(ii) Recruitment and appointment policy. This clause addresses the policies that the company
relies on while recruiting staff, the procedures followed i.e. from applications to selection tests, staff
appointments i.e. fulltime or part time, acceptance of offers of employment and induction so as to
familiarize them with the operations.
(iii) Conditions and Appointment. This clause covers the various conditions of appointment like
probation till full time, termination of the employment contract.
(iv) Staff development. This clause addresses the company’s plan to develop and implement training
of its staff.
(v) Performance Evaluation. This clause addresses the various steps and efforts set by the firm to
enhance proper and effective performance of its employees.
(vi) Compensation Package. This clause addresses issues of monetary compensation arising from
salary payments, and deduction which are usually determined by the company, overtime allowance
and such others.
(vii) Facilitation. This clause addresses facilitation of employees in terms of transportation to work or
even during the course of employment and such other expenses.
(viii) Discipline. This addresses disciplinary levels of employees while at work and how disputes that
arise during the course as a result of indiscipline may be addressed.
(ix) Leave. This clause addresses entitlement of employees being off work upon permission from the
firm’s administration and at which times it may arise for example annual leave, maternity leave sick
leave and such others.

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(x) Termination Of Service. This addresses the various notice periods in lieu of termination of their
employment and handing over after termination.
(xi) Safety and Security. This clause ensures security conditions of employees at all times whether
at office or outside office.
What policies should be implemented by an employer to govern Human Resource functions,
their legal basis, relevance and whether these policies are enforceable and binding on
employees?
1.Workplace Safety Policy
This policy ensures that the employer provides a safe work environment for all employees, including
health assessments, safety gear, and regular training on safe working practices.
Legal Basis: Employment Act Cap 226; Employment Regulations; Occupational Safety and Health
Act, Cap 231.
Regulation 30 of the Employment Regulations prohibits the employment of persons who are totally
or substantially deficient in the powers of hearing, speech or sight, or of feeble intellect making them
physically unfit for the task on which they are employed.
Regulation 36 provides for the obligation of the employer to cater for medical expenses of sick
employees.
Regulation 37 provides that where a workplace employs more than 40 workers but not exceeding
500, the employer is placed with an obligation to stock, at a workplace, a cupboard full of drugs
necessary for the treatment of workers who fall sick or get injured.
Binding Effect: The policy is mandatory for all employees, and violations may result in suspension or
dismissal, depending on the severity of the violation.
2. Anti-Harassment and Equal Opportunity Policy
Legal Basis: Employment (Sexual Harassment) Regulations, 2012, Employment Act, Cap 226. Right
to Equality and freedom from discrimination under Article 21 of the Constitution.
Explanation: Fostering a zero-tolerance policy toward harassment and discrimination. This includes
sexual harassment, racial discrimination, and unfair treatment based on gender, disability, or religion.
Binding Effect: All employees are required to comply with this policy, and violators may face
disciplinary action up to termination.
Sexual harassment policy. Section 6 of THE EMPLOYMENT ACT CAP 226 defines a sexual
harassment as an unwelcome sexual advance, requests for sexual favours and other verbal or
physical conduct of a sexual nature. Reg 2 of Employment (Sexual Harassment) Regulations,
2012 Statutory Instrument 15 of 2012 expounds on the definition further.
S.6 (4) mandates every employer who employees more than 25 employees to have in places
measures to prevent sexual harassment occurring at their work place.
Regulation 3 of the employment (Sexual Harassment) regulations stipulates that the sexual
harassment must be written and must be written and must include the following:
1. Notice to employees that sexual harassment at the workplace is unlawful
2. A statement that it is unlawful to retaliate against an employee for filing a complaint of sexual
harassment or for co-operating in an investigation of sexual harassment complaint.
3. A description and examples of sexual harassment
4. A statement of the consequences for employers who are found to have committed sexual
harassment.
5. A description of the process for filing sexual harassment complaints and the addresses and
telephone numbers of the person to whom complaints should be made.
6. Education and training programs on sexual harassment for all employees on a regular basis.\
7. Additional training for the committee on sexual harassment, supervisory and managerial
employees.
Regulation 8 requires an employer with more than 25 employees to designate a person who is
gender sensitive to be in charge of sexual harassment complaints.

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Under Regulation 10, the sexual harassment committee shall be constituted of four members who
shall be persons knowledgeable in and sensitive to gender and sexual harassment issues. Any
member of the committee may receive a sexual harassment complaint.
Regulation 4(1) requires that an employer provides each employee with a copy of the sexual
harassment policy.
Regulation 6 necessitates that the sexual harassment policy is placed in a conspicuous area at the
work place.
Pursuant to Regulation 12, a sexual harassment complaint maybe lodged by the employee with a
Labor officer where they are sexually harassed by the employer or their representative.
Regulation 13 provides for the procedure for handling such complaints
Where a Labor commissioner to when a sexual harassment is made fails to dispose of the complaint,
they may under Regulation 14(1) refer the complaint to the industrial court for hearing.
Further a person aggrieved by the decision of a Labor officer may within 21 days give a notice of
appeal to the industrial court under Reg14(2). The notice is in the form prescribed in the 3rd
schedule.
Reg 15 states the principles that must be exhibited in a sexual harassment complaint procedure
and these are:
1. Thoroughness
2. Impartiality
3. Timeliness
4. Gender sensitivity
5. Social dialogue
6. Discretion
7. Confidentially
8. The right to privacy of the victim of harassment.
Reg 17(1) bars any form of retaliation and discrimination against persons involved in sexual
harassment complaints. Sub Reg 3 defines discrimination under this regulation to include:
1. Termination
2. Denial of promotion
3. Demotion in title or duties
4. Transfer to a less favourable
5. Involuntary placement on leave
6. Hostile or abusive treatment
7. Decreasing remuneration or benefits
8. Coercion
9. Threats and intimidation
Under Reg 18(2) false or frivolous sexual harassment complaints may attract disciplinary action
against such an employee.
3. Leave and Absence Policy
Legal Basis: Section 53 provides for Annual leave and public holidays, Section 55, Maternity
leave, Section 56 paternity leave-Employment Act, Cap 226.
Explanation: Paid leave in accordance with statutory requirements. The policy sets out the procedure
for applying for annual leave, sick leave, and other forms of leave.
Binding Effect: All employees must adhere to this policy. Abuse of leave entitlements may lead to
disciplinary action.
4. Recruitment and selection policy

Legal Basis: Employment Act, Cap 226, Section 24 – Requires employers to provide a written
statement of employment detailing job description, remuneration, hours of work, leave entitlements,
and termination conditions.

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Section 31(1) of the Employment Act Children under 12 years shouldn’t be employed in any
business, undertaking or workplace.
Section 31(2) of the Employment Act, a child under the age of 14 can only be employed for light
work except for light work carried out under the supervision of an adult aged over 18 years and which
doesn’t affect the education of a child
L’ Estrange v Graucob [1934] 1 KB 394 – Establishes that signing a contract binds the party to its
terms
Binding Effect. Incorporated into employment contracts and the HR Manual. Employees sign an
acknowledgment form confirming adherence to policies. Regular training ensures compliance and
awareness.
5. Performance Management and Appraisal Policy
Legal Basis
Employment Act, Cap 226 – Governs employment relationships, including performance expectations
and termination procedures.
Francis Oyet Ojera v Uganda Telecom Ltd HCCS No. 161 of 2010 – Establishes fair employment
practices.
Binding Effect Included in employment contracts and policy manuals. Appraisals documented and
communicated to employees. Enforced through performance-based evaluations.
6. Remuneration and Benefits Policy
Legal Basis. Permitted deductions under Section 45 of the Employment Act, National Social
Security Fund Act, Cap 230, – Mandates employer contributions to the National Social Security Fund.
National Social Security Fund Vs MTN & UNISIS H.C.C.S No. 94/2009 – Reinforces employer
obligations regarding social security
Binding Effect, clearly stated in employment contracts and the HR Manual. Payroll deductions and
employer contributions must comply with statutory requirements. Subject to periodic audits to ensure
compliance.
7. Disciplinary and Grievance Procedures
Legal Basis, Section 57 of the Employment Act, Cap 226, – Provides minimum notice periods for
termination.
Labour Disputes (Arbitration and Settlement) Act, Cap 227, – Establishes structured dispute
resolution mechanisms.
Bank of Uganda V. Betty Tinkamanyire S.C.C.A No. 12 of 2007 – Addresses wrongful dismissal
concerns
Binding Effect, Incorporated into employment contracts and disciplinary manuals. Employees sign
acknowledgment forms agreeing to procedures. Enforced consistently across the organization.
8. Health, Safety, and Welfare Policy
Legal Basis. Occupational Safety and Health Act, Cap 231, – Requires employers to provide a safe
work environment and necessary protective equipment.
Mudoma Charles -Versus- Ken freight (U) Ltd; Labour Dispute Claim 2015/42 Establishes
employer responsibility in maintaining safe workplaces
Binding Effect, Detailed in employment contracts and safety manuals. Employees undergo
mandatory safety training. Regular audits conducted to maintain compliance.
9. Confidentiality and Data Protection Policy
Legal Basis, Section 9 of the Contracts Act, Cap 284 – Legally binds employees to confidentiality
agreements.
Gulaballi Ushillni V. Kampala Pharmaceuticals Ltd S.C.C.A No. 6 of 1998 – Reinforces protection
of proprietary company information.

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Binding Effect, Confidentiality clauses included in employment contracts. Employees required to sign
non-disclosure agreements. Regular cybersecurity training conducted.
10.Training and Development Policy
Legal Basis, Employment Act, Cap 226 – Encourages employee skill development and career
growth.
Binding Effect, Integrated into employment agreements. Employees required to attend mandatory
training sessions. Training records maintained for compliance tracking.
SPECIAL CATEGORIES OF EMPLOYEES.
1. Children
Article 34(4) and (5) of the 1995 constitution of the republic of Uganda states that a child of 16
years may enter into an employment contract.
S.2 of THE EMPLOYMENT ACT CAP 226 defines a child to mean a person below the age of 18
years
S.31 (1) of THE EMPLOYMENT ACT CAP 226 bars absolutely the employment of children under the
age of 12 in any business, undertaking or workplace.
Sub-section 2 further bars the employment of children under the age of 14 in any business,
undertaking or workplace except for light work carried out under the supervision of an adult aged 18
years and which does not affect the child’s education, social development etc.
Reg 2 of the Employment (Employment of Children) Regulations 2012, defines light work to
mean work which is
a) Not harmful to a child’s health
b) Not harmful to a child’s development
c) Not prejudicial to a child’s attendance at school
d) Not prejudicial to a child’s participation in vocational training and
e) Not in excess of 14 hours per week.
Reg 6 of the Employment (Employment of Children) Regulations 2012 designates a list of
hazardous work not permitted for employment of a child.
Section 31(5) of THE EMPLOYMENT ACT CAP 226 and Reg. 12 of THE EMPLOYMENT
(Employment of Children) regulations bar night work for children. The provisions restrict a child’s
working work to be between 7:00am and 7:00pm.
Over time work is prohibited for children under Reg.11.
A child before engaging in any job must undergo a medical examination as per Reg.13 (1) and sub
reg 2 requires that a medical examination is done every 6 months. The child upon undergoing a
medical examination under sub reg 1 must be issued with a medical certificate in the form prescribed
in the 4th schedule.
An employer is further required under Reg.14(1) to obtain authorization from the commissioner before
employing a child aged between 15 years to 17 years.
The employer must also maintain a register of the children he/she is engaging in employment as per
Reg 15 and the register is in form prescribed in the 5th schedule to the regulations.
2. Expectant mothers.
Article 33 of the constitution recognizes the special role women play in recreation and that the
same must be taken into account.
These are pursuant to Reg 42(1) of the Employment regulations Statutory Instrument 219—1, not
obliged to perform work which is harmful to their health.
The employer is mandated under Sub-regulation 2 to provide an expectant mother with any of the
following alternatives:
1. Flexible hours of work

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 2. Lighter work load
3. Alternative arrangements of work
S.74 (a) of the employment Act, further emphasizes that a female employee’s pregnancy or any
other reason connected with her pregnancy shall not constitute a fair reason for dismissal or for the
imposition of a disciplinary penalty.
3. Casual employees.
S.2 of THE EMPLOYMENT ACT CAP 226 defines a casual employee to mean a person who works
on a daily or hourly basis where payment of wages is due at the completion of each day’s work.
In KITAKA ERIMUS V AIM DISTRIBUTORS, LABOR DISPUTE REFRENCE NO 75 OF 2017, the
industrial court defined a casual labourer as one who gets paid per day after doing what he has been
engaged to do. There is no guarantee that his employer will give him a job the next day and the
obligations and responsibilities towards either the employee or the employer end with the work and
payment of a particular day.
Under Regulation 39(1) of the employment regulations 2011, a person must not be employed as a
casual employee for a period exceeding four months. Under sub-reg 2, a causal employee engaged
continuously for 4 months is entitled to a written contract and such employee ceases to be a casual
employee and all rights and benefits enjoyed by other employees will apply to them.
IN KITAKA ERIMUS V AIM DISTRIBUTORS (SUPRA), the industrial court defined the phrase
‘continuous engagement’’ as used in Reg 39(2) of the employment regulations to connote
engagement every day to do particular works over a certain period being four months in this case. For
a person to rely on Reg 39(2), they must lead evidence to show that they were ‘continuous
engagement for four months. Failure to do so means that the person was a casual labourer
In WILSON WANYANA V DEVELOPMENT AND MANAGEMENT CONSULTANTS
INTERNATIONAL, it provides for test of a causal worker. Justice Yorokamu Bamwine stated that
there are to main factors which identify a casual employee. First, he/she is not employed for more
than 24 hours at a time and secondly his/her contract provides for payment at the end of each day.
4. Migrant workers
S.36 (2) of THE EMPLOYMENT ACT CAP 226 bars any person from employing a person whom he
or she knows to be unlawfully present in Uganda. Sub section 3 criminalizes such action.
A person is unlawfully present in Uganda under S.53 (1) of the Uganda citizenship and
immigration control Act Cap 313. If such a person not being a citizen of Uganda enters or remains
in Uganda without a valid entry permit, certificate of permanent residence or pass issued under the
act.
Under S.53(4) of the Uganda Citizenship and Immigration Control Act, a person can only take an
employment in Uganda if they have been granted an entry permit class G as specified in the fourth
schedule to the act.
Entry permit is applied for pursuant to S.54(2) and the application is made to the National Citizenship
and Immigration board as established under Article 16 of the 1995 constitution of the republic of
Uganda.
Pursuant to Regulation 19(1) of the Uganda Citizenship and Immigration control Regulations
2004, every employer must furnish a return of all the non-citizens employed by him or her to the
commissioner for immigration every 6 months.
5. Persons with disabilities.
S.1(c) of the Persons with Disabilities Act 2019, defines a disability as a substantial functional
limitation of a person’s daily life activities caused by physical, mental or sensory impairment and
environmental barriers resulting in limited participation in society on equal basis with others.
S.5 (3) of THE EMPLOYMENT ACT CAP 226 bars discrimination in employment on the basis of
disability. This is buttressed by S.9 of the persons with Disabilities Act of 2019.
Regulation 35 of the employment regulations, 2011 impose various obligations on an employer in
regard to employees with disabilities e.g.

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 1. To encourage person with disabilities to apply when advertising for vacancies subject to the
inherent requirement of a particular job.
2. Avoid using screening methods during interviews which have the effect of discriminating
against a person on grounds of their disability.
3. Ensure that the physical officers of a workplace are accessible and to provide assistance and
devices required by an employee with disability to enable them execute their duties.
TRANSFER OF EMPLOYMENT
Under S.27 (1) of the employment act, a contract of service cannot be transferred from one
employer to another without the consent of the employee except as provided for in sub section 2.
Under Reg 29(1) of the employment regs, the consent must be sought at least 30 days before the
employee is transferred.
Under Reg 29(2) where the employee does not consent, they shall be paid all their terminal benefits,
outstanding balances, wages and other accrued benefits and the contract terminated.
Sub-section 2 is to the effect that where a trade or business is transferred in whole or in part, the
contracts of service of employees employed at the date of transfer will automatically be transferred to
the transferee, all nights and obligations between each employee and transferee will continue to apply
as if they had been rights and obligations concluded between the employee and transferee.
The assumption of all obligations by the transferee was discussed in the case of SHAKIL PATHAN
ISMAIL V DFCU BANK LTD HCCS No.236 of 2017, in which the court stated that the defendant
having taken over crane bank took over all employment’s contracts of the employees of crane bank
and any obligations there under. Thus, whereas the deductions complained of by the plaintiff were by
Crane bank, the defendant having taken over was liable to pay back the deductions unlawfully
deducted since it has assumed the employment contracts of Crane Bank’s former employees by
virtual of operation of S.28 (2) of the Employment act.
TERMINATION, DISMISSAL AND SUMMARY DISMISSAL.
Under S.82 (2) of the employment act, the employer has a duty to ensure conformity of employment,
however where it’s not possible then the employer may:
TERMINATION.
Termination is defined under S.2 of THE EMPLOYMENT ACT CAP 226 to mean the discharge of an
employee from an employment at the initiative of the employer for justifiable reasons other than
misconduct such as expiry of contract, attainment of retirement age etc.
In FLORENCE MUFUMBA V UGANDA DEVELOPMENT BANK, LABOR CLAIM N0.138 of 2014,
the industrial court stated that in terminating the employment of an employee there must be
circumstances that are justifiable but which may have no bearing on the fault or misconduct of the
employee.
Under S.64 (1) of the Employment Act, termination is deemed to take place where:
1. The contract of service is ended by the employer with notice
2. The contract of service being a contract for a fixed term or task ends with the expiry of the
specified term or the completion of the specified task and is not renewed within a period of
one week from the date of expiry on the same terms or terms not less favourable to the
employee.
3. The contract of service is ended by the employee with or without notice as a consequence of
unreasonable conduct on the part of the employer towards the employee.
4. The contract of service is ended by the employee in circumstances where the employee has
received notice of termination of the contract of service from the employer but before the
expiry of the notice.
The notice stated under S.64 (1) of the Employment Act, is governed by S.57. S.57 (1) states that
a contract of service shall not be terminated by an employer unless he or she gives notice to the
employee.
S.57 (2) requires that the notice is in writing and in a language the employee to whom it’s related
understands.
S.57 (3) stipulates the notice periods and these are:

Frederick Hasahya
 1. not less than 2 weeks, where the employee has been employed for a period of more than 6
months but less than one year.
2. not less than one month, where the employee has been employed for a period of more than
12 months but less than 5 years.
3. c) Not less than 2 months where the employee has been employed for period of 5, but less
than 10 years.
4. d) Not less than 3 months where the service is 10 years or more.
DISMISSAL.
S.2 of THE EMPLOYMENT ACT CAP 226 defines dismissal from employment as the discharge of an
employee from employment at the initiative of his/her employer when the said employee has
committed verifiable conduct.
In BENON H KANYANGOGA AND ORS V BANK OF UGANDA, LABOR DISPUTE CLAIM No. 80
OF 2014, the industrial court stated that in dismissing an employee, the employer must establish that
there is verifiable misconduct on the part of the employee. Verifiable misconduct includes but is not
limited to abuse of office, negligence, insubordination and allow circumstances that impute fault on the
part of the employee which include incompetence.
Whereas an employer has the right to dismiss an employee, he or she must do so in accordance with
the established legal procedure.
The employer must also pursuant to S.67(1) give a reason for the dismissal or else that would be
construed as unfair dismissal/unlawful dismissal. IN FLORENCE MUFUMBA V UGANDA
DEVELOPMENT BANK, LABOR CLAIM NO.138/2014, the industrial court held that whether the
employer chooses to terminate or dismiss an employee, such employee is entitled to reasons for the
dismissal or termination. ‘In employing the employee, we stringy believe that the employer had reason
to so employ him/her .in the same way, in terminating or dismissing the employee there ought to be
reason for the decision.
CONSTRUCTIVE DISMISSAL.
In BYANJU JOSEPH V BOARD OF GOVERNORS OF ST AUGUSTINE COLLEGE WAKISO,
LABOR DISPUTE NO.062 OF 2016, and the court relying on the black’s law dictionary 9th edition
defined constructive dismissal to mean a termination brought about by the employer making the
employees working conditions so intolerable that the employee feels compelled to leave.
The court further laid down the ingredients of constructive dismissal as follows:
1. That the employer must be in breach of the contract of employment
2. The breach must be fundamental as to be considered as a repudiatory breach
3. The employee must not delay in resigning after the breach has taken place.
4. What amounts to constructive dismissal
IN BYANJU JOSEPH V BOARD OF GOVERNORS OF ST. AUGUSTINE COLLEGE WAKISO
(SUPRA), court held that constructive dismissal does not require a formal termination but unilateral
act by the employer to substantially change the contract of employment.
Lord denning in WESTERN EXCAVATING (ECC) LTD V SHARP (1978) ICR 222 CITIED IN BYANJU
JOSEPH (SUPRA) he stated that if the employer is guilty of conduct which is a significant breach
going to the root of the contract or which shows that the employer no longer intends to be bound by
one or more of the essential terms of a contract then the employee is entitled to treat himself as
discharged from any further performance. If he does so then he terminates the contract by reason of
the employers conduct. He is constructively dismissed. The employee is entitled in those
circumstances to leave at the instant without giving any notice at all or alternatively he may give
notice and say that he is leaving at the end of the notice. But the conduct must in either case be
sufficiently serious to entitle him to leave at once.
WRONGFUL DISMISSAL.
It arises where the employee disputes the reasons for his /her dismissal.
UNLAWFUL DISMISSAL.
It arises were S.65 of THE EMPLOYMENT ACT CAP 226 was not complied with. In this, the
employee disputes the procedure adopted for their dismissal.

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SUMMARY DISMISSAL.
Under S.68 (1), summary dismissals defined to mean when an employer terminates the services of
an employee without notice or with notice than that to which the employee is entitled by any statutory
provision or contractual terms.
Under S.68 (3) an employer is entitled to dismiss summarily and the dismissal is justified where the
employee has fundamentally broken their contract of service.
In FRANCIS OYET OJERA V UGANDA TELECOM LTD, HCCS No.161 of 2010, court stated that
1. A single act of gross misconduct was sufficient to lead to summary dismissal
2. Even in summary dismissal, the person must be accorded a fair hearing under S.65 of the
employment act.
IN KABOJJA INTAL SCHOOL Vs OYESIGYA (LABOR DISPUTE APP NO.003 OF 2015, court found
that failure to issue an exam amounted to fundamental breach of the teacher’s employment contract.
SUSPENSIONS AND DISCIPLINARY SANCTIONS.
THE EMPLOYMENT ACT CAP 226 provides for two types of suspensions under the act. These are
suspension as a disciplinary sanction or punishment and suspension pending an inquiry.
Suspension as a disciplinary sanction.
Pursuant to S.61 (1) of the employment act, an employee may impose a disciplinary penalty onto
the employee other than dismiss them where such employee was negligent, failed or allegedly failed
to carry out their duties under the employment contract. S.61(3) stipulates that an employer can only
impose a disciplinary penalty where it is reasonable to do so and in deciding what is reasonable, the
employer is guided by the nature of the neglect, failure or alleged failure committed by the employee
and the code of discipline set out in the 1st schedule to the act.
Under S.61 (2), THE EMPLOYMENT ACT CAP 226 defines a disciplinary penalty to mean a written
warning, reprimand or suspension from work. Under Sub-section 4 of the provision, an employer
cannot be suspended from work for more than 15 days in any 6 months period.
Under S.61(5), an employee who fails to impose a disciplinary penalty within 15 days from the time of
occurrence or when he/she became aware of the occurrence giving rise to disciplinary action is
deemed to have waived the right to do so.
Suspension pending inquiry.
Under S.62(1) of the employment act, whenever an employer is conducting an inquiry into the
conduct of an employee which they believe might reveal a cause for dismissal of an employee, the
employer may suspend the employee with half pay.
Whether to suspend an employee with half pay or full pay is determined by what the employment
contract and the human resource manual of the employer stipulates. For example, in OKELLO
NYMLORD V RIFTVALLEY RAILWAYS (U)LTD HCCS NO 195 OF 2009, the human resource
manual of the dependent stipulated that on suspension an employee is entitled to their full pay for the
duration of the suspension. Pursuant to S.27(2) of the employment act, such a variation of the
provisions of the act by the HR manual or employment contract which is in favor of the employee is
permissible however any agreement between the employer and employee to allow for suspension
without any pay at all is null and void by virtual of S.27(1).
The suspension according to S.62 (1) of THE EMPLOYMENT ACT CAP 226 must not exceed four
weeks or the duration of the inquiry whichever is shorter. In OKELLO NYMLORD V RIFTVALLEY
RAILWAYS (U)LTD, HCCS NO.195 OF 2009, the plaintiff was suspended in excess of the four weeks
permitted under S.63(2) of THE EMPLOYMENT ACT CAP 226 was an unlawful suspension.
IN KATINDA V NNHP ENTERPRISES LABOR DISPUTE REFERENCE NO.169, court stated that it
is important that the suspension letter clearly states that the suspension is an interim pending finding
out whether or not the employee should be responsible for the allegation mentioned in the suspension
letter.

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REMEDIES AVAILABLE TO AN EMPLOYEE FOR UNFAIR TERMINATION, UNFAIR DISMISSAL
AND UNLAWFUL DISMISSAL.
The remedies are provided for in THE EMPLOYMENT ACT CAP 226 and under common law.
1. Payment in lieu of notices.
Pursuant to S.57 (1) of the Employment Act, an employment contract cannot be terminated by an
employer without giving notice to the employee. Where such notice is not issued, then under S.57(5),
the employee who is terminated is entitled to payment in lieu of notice that he or she ought to have
been given. In BANK OF UGANDA V BETTY TINKAMANYIRE Tseseko, JSC held that ‘in my
opinion where any contract of employment like the present stipulates that a party may terminate it by
giving notice of the specified period, such a contract can be terminated by giving the stipulated notice
for the period. In default of such notice by the employer, the employee is entitled to receive payment
in lieu of notice and where no period for notice is stipulated, compensation will be awarded for
reasonable notice which should have been given depending on the notice and duration of
employment. Payment in lieu of notices can be viewed as an ordinary way of giving notice.
2. Reinstatement.
In instances of unfair termination, an employee has the remedy of reinstatement when ordered by a
court pursuant to S.70 (5) (a) of E.A. in ordering the remedy court must under subsection 6 give due
regard to whether the employee does wish to be reinstated, whether the circumstances surrounding
the termination are such that a continued employment relationship would be intolerable and whether
its reasonably practicable for the employer to reinstate the employee.
Courts are however very unlikely to issue this remedy despite the same being available to an
aggrieved party under the act. In STANBIC BANK V KIYEMBA MUTALE SCCA N0.2 OF 2010,
justice Katureebe held that it is trite law that normally an employer cannot be forced to keep an
employee against his will.
3. Compensation
Under S.70 (5) (b) of the employment at, the court if satisfied that the employee was unfairly
terminated may order the employer to pay compensation to the employee. Under S.77 (1) an order of
compensation must include a basic compensatory order equal to the employees four weeks wage.
Pursuant to S.77 (2), the compensatory order may include additional compensation which according
to sub-section 3 must not exceed an amount amounting to the employees 3 months wage. In
OKELLO NYMLORD V RIFTVALLEY RAILWAYS (U) LTD (SUPRA), Musota J held that where an
employer unlawfully terminates the services of an employee the latter is entitled to compensatory
orders under the E.A
4. Severance allowance.
Subject to S.87 (a), an employee is entitled to a severance allowance from the employer where the
employee was unfairly dismissed.
Musota J in OKELLO NYMLORD V RIFTVALLEY RAILWAYS (U) LTD (SUPRA) held that where an
employer unlawfully terminates the services of an employee, the latter is entitled to not only
compensatory orders but also severance allowance or pay under the E.A.
5. Damages
These are a common law remedy and include the following:
a) Several damages
In HADLEY V BAXENDALE (1894) 9 EXCH 341, court held that the purpose of damages is to put the
injured party in the position he or she would have been if the injury had not occurred. In STANBIC
BANK V KIYEMBA MUTALE SCCA NO.2 OF 2010, Justice katureebe held that whereas an order of
specific performance in employment contracts cannot be issued, the employer must be prepared to
pay damages for wrongful dismissal. IN GULLABHAI SHILLING V KAMPALA PHARMACEUTICAL
LTD SCCS NO. 6 OF 1999, Mulenga JSC held that a wronged employee is entitled to recover as
damages, the equivalent of the remuneration for the period stipulated in the contract of notice.
b) Aggravated damages

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In ISAAC NSEREKO V MTN UGANDA LTD, Justice Kabiito stated that aggravated damages
compensate the victim of a wrong for mental distress in circumstances in which that injury has been
caused or increased by the manner in which the defendant committed the wrong or by the defendants
conduct subsequent to the wrong or by the defendant conduct subsequent to the wrong. They are
damages awarded as compensation for the P/F mental distress, where the manner in which the
defendant has committed the tort, or his motives in so doing or his conduct subsequent to the tort has
upset or outraged the P/F. such conduct or motive ‘aggravates’ the injury done to the P/f and therefore
warrant a greater or additional compensatory sum.
c) Special damages
These must be specifically pleaded and proved. Special damages in such cases may relate to
outstanding bank loan obligations at the time when the employee was unfairly terminated, unfairly
dismissed or unlawfully dismissed. In NATIONAL FOREST AUTHORITY V SAM KIWANUKA CIVIL
APPEALS NO.005 OF 2009, the court of appeal held that special damages may be awarded where a
party contracts a loan obligation but as a result of unlawful or wrongful act of another making the loan
contractor fail to pay the loan, the latter is entitled to special damages of an amount equivalent to the
outstanding bank loan at the time of the unlawful act. The victim is also entitled to general damages
for the inconvenience and embarrassment caused to him as a result of the unlawful acts of the
defendant.
JURISDICTION OF THE LABOR OFFICER AND THE INDUSTRIAL COURT.
S.12 (1) of the Employment, enshrines Labor officers with the jurisdiction to entertain and resolve
Labor disputes arising from employment contracts or under the operation of the act. In addition,
Section 92(1) of the Employment Act stipulates that the only remedy available to person claiming
an infringement of any of the rights fronted under the employment act, is to make a complaint to a
Labor officer.
Under S.2 (1) of the Labor disputes (Arbitration and Settlement) Act, Labor disputes whether
existing or apprehended may be reported to Labor officers in writing. S.1 of L A (A&S) act defines a
Labor dispute to mean any dispute or difference between an employer and employees or between
Labor unions, connected with the employment or non-employment terms of employment, the
conditions of Labor of any person or the economic and social interests of a worker or workers.
Under S.92(2) of the EA, the Labor officer has the jurisdiction to hear and settle by conciliation or
mediation a complaint by a person alleging that another party is in breach of the employment contract
between them.
In the case of BUSINGE MAIM AND AYELLA GEORGE ZACK V SINOPEC SERVICES (U) LIMITED
(CIVIL SUIT 7 OF 20230[2024] UGHC 21 (30 JANUARY 2024), It was reasserted that the
employment act of 2006 did not oust the original jurisdiction of the high court in employment matters.
Procedure for lodgement of a complaint.
The procedure is outlined under Regulations 7 and Regulations 8 of the Employment
Regulations, 2011.
Industrial court
The I.C is established by S.6 (1) of the Labor disputes (Arbitration and Settlement) Act 227. In
ASAPH RUHINDA NTENGYE AND ANOTHER V ATTORNEY GENERAL, CONST PET.NO.33 OF
2016, the constitutional court stated that the industrial court is part of the courts of judicature although
is not a superior court. It is a subordinate court established under Article 12 of the constitution even
though it is at the same level as the high court in appellant ranks.
Jurisdiction.
Under S.8 of the Labor disputes (Arbitration and Settlement) Act, the jurisdiction of the I.C
includes:
1. Arbitrate on Labor disputes referred to under the LD (A &S) act.
2. Adjudicate upon questions of law and fact arising from references to the industrial court by
any other law.
Pursuant to S.23 (7) of the Employment Act, a complainant may pursue a claim before the I.C if the
complaint is dismissed or the Labor officer has within 90 days not issued a decision.

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S.93 (1) of THE EMPLOYMENT ACT CAP 226 further states that a party who is not satisfied with
the decision of a Labor officer on a complaint may appeal to the I.C.
According to S.94 (2) of the EA, the appeal must relate to a question of law and on question of fact
only with leave of court.
Composition of I.C
S.10(1) of the L.D (A &S) Act, states that the industrial court consists of a chief judge, a judge (both
of whom must have similar qualifications as those of a high court judge and are appointed by the
president on the recommendation of JSC under S.10(2), an independent member, a representative of
employers and a representative of employees.
Procedure.
A matter may pursuant to Rule 3 of the Labor disputes (Arbitration and settlement)(industrial
court procedure) rules, be referred to the industrial court either by a Labor officer at the request of a
party to a dispute in which case the reference will be in form specified in the first schedule to the rules
or a party to a dispute that has been reported to a Labor officer may refer the matter to the industrial
court if the matter has not been referred by the Labor officer or otherwise disposed of the dispute
within 8 weeks.
1. The reference in this case is in the form specified under the second schedule to the rules. The
reference by the Labor officer must be accompanied by report of the Labor officer describing the
nature of the disputes and steps taken to resolve the dispute and all documents and information
furnished to him or her by the parties.
2. Upon receipt he references by the registrar of industrial court, he/she must as be required by rule 4
of L.D (A&S) (I.C procedure) rules file the reference and allocate it a reg number.
3. The registrar must under rule 5(1) give notice to the parties to the dispute that a reference has
been made to the I.C within 7 days from the date of receipt of the notice.
4. The claimant must serve the memorandum onto the respondent
5. The claimant must then file 6 copies of the memorandum accompanied by an affidavit of service
with the registrar of the I.C as stipulated in Rule 5(2)
6. Rule 5(4) mandates a respondent to file a reply to the memorandum within 7 days from the day of
service of memorandum
7. Respondent must serve the reply onto the claimant and file 6 copies of the memorandum in reply
accompanied by an affidavit of service.
Note: under Rule 6(1), a party to a dispute who fails to file documents within the prescribed time, may
apply to the court for extension of time.
Appeals from I.C
Under S.23 of the L.D(A &S) act and rule 23(1) &(2) of the L.D (A & S) (I.C procedure) rules an
appeal from a decision of I.C is to the court of appeal and must only be on a point of law or on
whether the I.C had jurisdiction over the matter.
The appeals are pursuant to Rule 23(3) governed by the judicature (court of appeal) rules S.I NO.13-
10
IN KOMAKECH V MUTTICO TECHICAL SERVICES LIMITED AND ANOTHER 2024 UGIC 25(5
JULY 2024), it was held the industrial court has no jurisdiction to hear disputes arising from injuries
sustained in workplaces.
COLLECTIVE TERMINATION.
Under S.64 of the Employment Act, an employment contract may be terminated. Section 2 of the
EA, defines what termination of employment to mean the discharge of an employee from an
employment at the initiative of the employer for justifiable reasons other than misconduct, such as,
expiry of contract, attainment of retirement age, etc.;
Under S.88 (2) of E.A, the employer has a duty to ensure continuity of employment however where it
is not possible then the employer may terminate in accordance with the law.

Frederick Hasahya
Under S.80(1) of the E.A, if the employer contemplates termination of not less than 10 employers
over a period of not more than 3 months for reasons of an economic, technological structural or
similar nature then that is collective termination.
Economic reasons, the employer is financially distressed and if nothing is done might be declared
insolvent and any of the insolvency proceedings may happen that is receivership, administration or
liquidation and therefore to avoid these, the company must lay off some workers so as to cut costs
and stay afloat.
Technological reasons, the employer has acquired new efficient technology to perform a given tasks
there by rendering the present employees doing that task surplus.
Structural Procedure.
1. Notify the employees affected of the pending termination. Notice periods in S.57 of the E.A are
applicable. BEN KIMULI V SANYU 2000.
2. Notify the representative of the Labor union if the employees affected are unionized as per S.80 (a)
of E.A and the minimum period for such notice is four weeks before the 1st termination.
3. Notify the commissioner for Labor in writing of the reasons for the termination, the number and
categories of workers likely to be affected and the period over which the termination are intended to
be carried out. S.80 (b) of E.A
Reg 44(a) of the employment Regs 2011 states that the notice must be in form prescribed in Part A
and B of the 6 the schedule.
UNIONIZED EMPLOYEES.
Labor union is defined in S.1 of the Labor Unions act cap 228, to mean any organization of
employees created by employees for the purpose of representing the rights and interests of
employees and includes a registered Labor union at the time of coming into force of the act
Right of employees to form Labor unions.
Article 29(1) (e) of the 1995 constitution of the republic of Uganda guarantees the right to freedom
of association.
Further Art.40 of the constitution provides for the right to work which entails the formation of the
Labor unions
Under section 2 of the Labor unions act, employees have the right to organize themselves in any
Labor union.
RIGHT OF EMPLOYEES IN A LABOR UNION
Under S.2 of the Labor act, unionized workers have the right:
1. To assist in the running of the Labor union
2. To bargain collectively through a representative of their own choosing
3. Withdraw their Labor and take industrial action. The industrial action may take the form of sit
down strikes.
RESTRAINT OF TRADE.
Under Article 25(1) of the 1995 constitution of Uganda, no person shall be held in slavery or
servitude. Article 25(2), no person shall be required to perform forced labour.
Article 40(2), every person in Uganda has a right to practice his or her profession and to carry on any
lawful occupation, trade or business.
Article 40(3) (c), every worker has a right to withdraw his or her lobar according to law. In light of the
above provisions, it can be said that contracts in restraint of trade are unconstitutional

Frederick Hasahya