LABOUR LEGISLATION IN UGANDA
LABOUR LAW
This deals with the relationship between employer and employee i.e. the contract of
employment, terms and conditions of service, work place conditions, health and safety,
workers compensation, labours disputes, trade Unions, social security and pensions.
SOURCES OF LABOUR LAW
1.
The 1995 constitution.
2.
The Employment Act of 2006
3.
The Labour Unions Act of 2006
4
The Workers compensation Act
6.
The Pensions Act
7.
The National Social security Fund Act
8.
The Labour Disputes (Arbitration and settlement) Act of 2006
OTHER SOURCES
Common law
This is the law that originated from the English customs. It is applied in Uganda
because it is a former British colonial state. This law is unwritten and can be found in
English cases.
Case law
International labour organisation conventions
THE CONTRACT OF EMPLOYMENT
The contract of employment on Uganda is governed by 4 main sources
Legislation
Case law
Collective bargaining agreement
The individual contract of Employment.
DEFINITION
In general a contract of employment is one whereby one person called the employee agrees
to serve another called the employer by rendering personal services to him or to others on
his behalf in return for money payment.
It is usually created by formal agreement between the employee and the employer and may
last for a specific agreed period or it may continue indefinitely until it is ended by one of the
several modes of determination.
DISTINCTION BETWEEN CONTRACT OF SERVICE AND CONTRACT FOR
SERVICES
Common law makes a distinction between a contract of service and a contract for services.
Contract of service creates the relationship of employer and employee between the parties
while under a contract for services work is done by an independent contractor who enjoys
considerable independence from the person who employs him.
Whereas a contract for services is one where the ‘employer’ contracts another to perform a
specified duty where the contractor is so specialized and possessed with such skill and
resources as to perform the work that the ‘employer’ would not ordinarily subject him or her
to direction, control and supervision, except perhaps for relying to the contractor his wishes
for consideration, but not on how to exercise the contractor’s skill and performance.
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Lecture Notes by Grace Flavia Lamuno
The importance of distinguishing a contract of service from contract for services is to
determine the extent of rights and liabilities of the employee as
against the
employer.
Hypothetically, if Makerere institute contracts ROKO to build a 5-storey-house at their site
in kagugube, ROKO will do the work with some workers. The workers will be under the care,
control and responsibility of ROKO who is answerable for their torts. But Makerere institute
will not incur liability because its relationship with ROKO is that of contractor under a
contract for services.
The distinction between employees and independent contractors is important for the
following reasons.
1
LIABILITY
2 INCOME TAX
3 WELFARE CONTRIBUTIONS
Contract of Service
(Employed
persons
An
employer
is
vicariously liable for
wrongful
acts
of
employees committed
during the course of
their employment.
Tax payable by the
employee is deducted
at source by employer
under PAYE scheme.
Employer/ employee
contribute to welfare
schemes of NSSF
Contract
for
services
(Self employed)
As a general principle
an employer may not
be liable for wrongful
acts of independent
contractors.
Income tax of selfemployed is payable
by the self-employed
and not his employer.
This is not the case
with
regard
to
independent
contractors.
Common law is less
likely to interfere in
the relationship of
employer and
independent
contract.
4 COMMON
LAW Numerous terms are
EMPLOYMENT TERMS
implied into a contact
of employment by
common
law
to
regulate
the
relationship
of
employer
and
employee e.g. trust,
confidence, obedience
of lawful orders.
5 STATUTORY EMPLOYMENT Larger
No.
of This is not case with
RIGHTS
individual
independent
employment
rights contractors.
are
conferred
on
employees by statute
of right to belong to
trade unions take
leave,
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Lecture Notes by Grace Flavia Lamuno
compensation,
TESTS USED BY THE COURTS TO DISTINGUISH BETWEEN A CONTRACT OF
SERVICE AND A CONTRACT FOR SERVICES
Over years, courts have developed a number of tests to decide if the relationship is one of
employer and employee or employer and independent contractor.
1.
CONTROL TEST
This is the basic test on which courts relied for a long term. Therefore, under this test, a
person working for another was regarded as a servant if he was subject to the command of
the master as to the manner in which he shall do his work. But if the master was only in
position to determine the what and not the how of these services, that person doing the
work was said to be an independent contractor and his contract one for services and not
one of service. In the case of Walter V Crystal palace, Walter was employed as
professional footballer and court had to decide whether he was an employee or independent
contractor. Court held that he was an employee because he was subject to the control of his
master in the form of training, discipline and method of play.
The control test has became less meaningful as large sections of the industry became more
skilled and more technological which gave rise to skilled labourers. These skilled employees
could have skills which an employer lacked e.g. accountants. If therefore the employee relied
on employer’s instructions on how to do his work, he would be breaking his contract and
possibly dismissed.
Due to above shortcomings with the control test-court developed another test called the
integration test.
2.
INTEGRATION TEST / ORGANISATIONAL
Under this test if a person does work which is an integral part of the business of the
employer, then he is deemed to be an employee. This test is useful in cases of professional
workers such as doctors whose work may be part of hospital work but without being under
the control of the employer in how they do their work.
This test was laid down by Denning LJ in the case of Stevenson, Jordan and Harrison
MacDonald (1952) where he said
“ Under a contract of service, a man is employed as part of the business and his
work is done as an integral part of the business, where as under a
contract for services, his work although done for the business
is not integrated into it”.
However, the integration test also had a few short comes e.g. what was meant by integration.
This led to the development of another test.
3. MULTIPLE TEST
Under this test, courts look at various factors. The test was laid down in the case of Ready
mixed concrete Ltd. V Minister of Pensions (1968) 2 Q.B 497.
A written contract was executed between a company marketing and selling mixed concrete
and Latimer which stated that Latimer a driver would make available a vehicle bought by
him on hire purchase from a finance organisation associated with the company. It was his
responsibility to paint it in company colour, maintain and insure it. He was obliged to wear
company’s uniform and drive on company business for maximum No. of hour legally
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Lecture Notes by Grace Flavia Lamuno
permissible per week, he was also obliged to obey, all reasonable orders from the company
as if he were an employee of the company, he was free to choose some one to drive in his
place. Issue was whether he was employed under a contract of service or contract for
services.
Mackenna J, held that:
1.
The inference that parties under a contract were master and servant or otherwise was
a conclusion of law dependent on the rights conferred and duties imposed by the
contract and if the contracted rights and duties created the relationship of master and
servant
2.
A contract of service existed if
(a)
the servant agreed that in consideration of a wage or other remuneration, he will
provide his own work and skill for master.
(b)
Servant agrees expressly or impliedly that in performance of that service, he will be
subject to the master’s control in a sufficient degree.
c)
The other provisions for the contract are consistent with it being a contract of service.
The court concluded that the rights conferred and duties imposed by the contract were not
such as to make it a contract of service and that Latimer had sufficient freedom in
performance of his obligations to qualify him as an independent contractor.
The multiple test was also considered in a Ugandan case of Fukasi Kabugo V. A.G. (1975)
338, court held that the normal tests to determine whether a contract of service exists were;
(a)
The master’s power of selection of servants
(b)
Payment of wages.
(c)
Masters right to control method of doing work.
(d)
Master’s right of suspension or dismissal.
Generally, whether a contract is one of service or for services depends on the circumstances
of each particular case and although control is one major aspect, other factors have got to
be taken into consideration.
4. SMALL BUSINESSMAN TEST
In applying the multiple test the courts are trying to establish whether or not the alleged
employee is in fact in business on their own account or on the employer’s account. This is
sometimes called the “small businessman test” and was first articulated in the case of
Market Investigations V. Minister for Social Security (1969) 2 QB 173 where the
alleged employee was a market researcher who was described in her contract as selfemployed. In deciding that she was in fact an employee the court adopted the multiple test
approach, stating that they were looking to see whether she was on business on her own
account, looking in particular to see whether, she provided her own employment, whether
she hired her own helpers, whether she took any financial risk, and whether she took any
responsibility for investment or management. The court answered all these questions in the
negative.
According to the case of Withers V. Flackwell Heath Football Surpporters’ Club
(1981) IRLR 307 in deciding whether the contract is one of employment or not the
question to ask the worker is “Are you your own boss”?
Normally the essence of an employment contract is the mutual obligation to both provide
work and to perform the work this mutuality of obligation has to be present for a contract to
be one of employment.
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Lecture Notes by Grace Flavia Lamuno
It may be that the different aspects of the contract will be highlighted depending on why the
existence of the contract is being challenged or sought to be established. It is certainly the
case that most of the emphasis on the “business on your account test” will arise in the
context of questions of tax and NSSF contributions, while “mutuality of obligation” has
been emphasized in the context of unfair dismissal, and the issue of “control” has
traditionally been seen as being of importance where vicarious liability or the employer’s
safety responsibility is in issue.
Other Relevant factors in relation to contract of employment
1. Whether the worker can properly be regarded as part of the employer's
organisation
An employee is normally part and parcel of the employer's organisation and does their work
as an integral part of the business whereas an independent contractor is not usually
integrated into the organisation but is accessory to it. A question to consider is whether the
worker is performing services as a person in business on their own account.
Also relevant is:
o whether the person performing the services provide their own equipment;
o whether they hire their own helpers;
o what degree of financial risk they take;
o what degree of responsibility for investment and management they have;
o whether they have an opportunity of profiting from the management of the
task.
The question of whether or not a person is in business on their own account is particularly
important when you are considering the status of professional and skilled employees.
2. Whether the `employer' has the power to select and appoint the individuals
doing the work?
The fact that the `employer' has the power to select and appoint the individuals to do the
work is an indication of a contract of employment.
3. Whether the `employer' has the power to dismiss or suspend the worker
The power of dismissal or suspension indicates a relationship of employment. If the
`employer' can dispense with the worker's services by giving a certain period of notice, this
points to a contract of employment as an independent contractor cannot be "dismissed".
4. Whether wages/salary/holiday pay are paid
The way in which a worker is paid is a useful indication of whether that person is employed.
Normally an employee is paid a regular, fixed sum although this is not always the case (e.g.
where commission is payable). Where a person receives holiday pay and sick pay, it can
indicate the likelihood of an employment relationship. On the other hand, payment by the
job i.e. in relation to a complete task, may point away from employment, depending on the
other factors / tests.
5. Supplier of equipment
If one party to the contract in question supplies the tools, machines or equipment used by
the other party, this points to a contract of employment. Independent contractors or selfemployed people normally provide such equipment for themselves.
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Lecture Notes by Grace Flavia Lamuno
6. The person who fixes the times and place of work
The power to fix hours and/or times when is a person is to work is suggestive of a contract
of employment. The power to direct where the person is to work can also indicate a contract
of employment.
7. Whether personal service is provided
A person will not normally be an employee if they are entitled to delegate the entire
performance of the work to another person.
8. The extent of the obligation to work and mutual obligations
If the contract entitles a person to the full-time services of another, this indicates a contract
of employment. However, if it is left entirely to one party to the contract to choose whether
or not to do any work, it is unlikely to be a contract of employment.
The courts have said that it is possible to have a continuing (`global') contract of
employment linking up intermittent periods of employment. This will only apply where
there is a degree of continuing mutual obligation on the employer to offer employment and
on the employee to accept it. The court found such a situation where there was regular
course of dealing for years between the parties under which the `employer' supplied work
daily to homeworkers, and collected and paid for finished work. The length of the
relationship (three years) and the continuity and regularity of the dealings between the
parties were important factors in reaching this decision. These principles are particularly
relevant in considering whether casual workers are employees.
9. Payment of income tax and National Insurance contributions
Where the `employer' deducts income tax and social security contributions under the PAYE
system, this indicates that the parties themselves view their relationship as one of
employment. As with all the factors, this (or the failure to deduct) is not conclusive as to the
true nature of the relationship.
An arrangement to pay income tax and social security contributions outside the PAYE
system does not, in itself, indicate that the payee is self-employed.
10. The intention of the parties
The intention of the parties as to the contract that they intend to create is a relevant factor
to consider but, as with all other factors, is not conclusive as to the true nature of the
contract. All the general rules of contract apply to contracts of employment.
1.
2.
3.
4.
Questions
What are the tests to determine whether there is a contract of service or contract for
services.
What are the consequences of deciding that a person is an employee.
Distinguish between a contact of service and a contract for services.
Using relevant authorities, discuss the tests that have been applied by court in
distinguishing between a contract of service and a contract for services.
The Contract of Employment as governed by the Employment Act
The new Employment Act, 2006 repealed the whole of the Employment Act Cap.219. In an
attempt to harmonize the Constitution and international labor instruments with Ugandan
employment law the new Act also specifically provides for forced labor, discrimination in
employment, sexual harassment, paternity leave, discipline and termination, Severance
allowance etc.
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Lecture Notes by Grace Flavia Lamuno
The Employment Act defines an “employee” as a person employed for wages and includes
an apprentice and domestic servant.
The Employment Act defines an employer as any person or group of persons including a
company or corporation, regional or local authority, a governing body of an unincorporated
association, a partnership, parastatal organization or other institution or organization
whatsoever, for whom an employee works or has worked.
The Employment Relationship
Under the Act a “contract of service” means any contract, whether oral or writing, whether
express or implied, where a person agrees in return for remuneration, to work for an
employer and includes a contract of apprenticeship.
A “contract of apprenticeship” means
“a contract of service where there is an obligation on the employer to ensure that the
employee is taught and acquires the knowledge and skills of a given industry by means of
practical training received in the course of employment and where there is formal
recognition that the employee has acquired the knowledge and skill when he has done so”.
CONTRACT OF EMPLOYMENT
A contract of employment like any other contract is an agreement between the parties to it.
Like most contracts it need not be in writing, but can be implied from the actions of the
parties. While there is no requirement for writing to constitute a contract of employment,
there is a statutory requirement for an employer to provide employment cards where an
employee is employed under a contract of service or a written contract where the duration
of employment is for a period of six months or more. An employer who willfully fails to
comply with the latter requirement commits an offence
Probationary contract
Probationary contract means a contract of employment, which is not of more than six
months duration, is in writing and expressly states that it is for a probationary period.
The intention of the parties
The intention of the parties as to the contract that they intend to create is a relevant factor
to consider but, as with all other factors, is not conclusive as to the true nature of the
contract.
All the general rules of contract apply to contracts of employment.
Under the Act every contract required to be in writing shall contain all the particulars as is
necessary to define the rights and obligations of the parties to it and shall in all cases
include:a) The name of the employer, of the undertaking and the place of employment.
b) The name of the employee, the place of engagement, the place of origin of the
employee and any other particulars necessary for his or her identification.
c) The nature of employment.
d) The duration of employment and the method of calculating this duration.
e) The rate of wages and the method of calculating the wages, the manner and
periodicity of payment of wages, the advance of wages and the manner of repayment
of any such advances.
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Lecture Notes by Grace Flavia Lamuno
f) The condition of repatriation in case of an expatriate employee; and
g) Such other matters as may be prescribed.
Aspects of the Employment Act
Applicability of the Act
The Act applies to all employees employed by an employer under a contract of service as per
section 3 (1). This would includes all employees, whether work working in civil service or in
public service. Section 3 (2) provides that the Act does not apply to:
a) Employers and their dependent relatives when dependent relatives are the
only employees in a family undertaking as long as the total number of
dependent relatives does not exceed five
b) The UPDF, other than their civilian employees
Section 4 provides that any provisions in an agreement or contract of service shall be void
where it:
a) Excludes or limits the operation of any provision of this Act to the detriment of the
employee or
b) Precludes any person from
i) Presenting a complaint under this Act to a labour officer
ii) Initiating or enforcing any proceedings under this Act or
ii) Giving evidence in connection with any such complaints or proceedings referred to in
the above paragraphs
General Aspects
Forced Labour: Section 5
Section 5 provides that no person shall use or assist any other person in using forced or
compulsory labour. Forced labour is defined in section 1 to mean all work or service which
is extracted from any person under the threat of a penalty including the threat of any loss of
rights or privileges and for which that person has not offered himself or herself voluntarily.
Under section 5 (2) exceptions to forced labour are given which include:
• Work or service extracted by virtue of compulsory military service laws or work of a
purely military character
• Any work or service which forms part of the normal civic obligations of the citizens of
uganda
• Work or service extracted from any person as a consequence of a conviction by a court
of law
• Work or service extracted in cases of an emergency such as in the event of war or
disaster or threat of calamity that will endanger the existence or well being of the
population
Discrimination in Employment
Article 21 of the constitution provides that all persons are equal before and under the law in
all spheres of political, economic, social and cultural life and in every other respect and shall
enjoy equal protection of the law. A person shall therefore not be discriminated against on
any grounds.
Freedom of contract is the basic principle where contracts of employment are considered,
just as it is for any other contract. This means, so far as recruitment is concerned, that in
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Lecture Notes by Grace Flavia Lamuno
general employers may select their workforce according to any principle they like, or
according to none. However, in fairly recent years it has come to be felt that disadvantaged
groups in society are frequently the victims of unfounded prejudices, which prevent them
from competing equally in the labor market. The problem is sufficiently serious for the law
to intervene and to prohibit discrimination on certain grounds, which are regarded
irrelevant to someone’s ability to do the job.
Section 6 of the Employment Actmplaces a duty on all parties the minister, a labour officer
and the Industrial Court to seek to promote equality of opportunity, with a view to
eliminating any discrimination in employment. S 6 (2) places a duty on all parties to promote
and guarantee equality of opportunity for persons who, as migrant workers or members of
their families, are lawfully within the territory of Uganda.
Sec. 6(3) makes discrimination unlawful and defines it to include any distinction, exclusion,
or preference made on the basis of race, colour, 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.
However under S 6(4) any distinction exclusion or preference in respect of a particular job
based on inherent requirements of that particular job shall not be deemed discrimination.
S 6 (7) requires every employer to pay male and female equal remuneration for work of equal
value.
Discrimination is a violation of civil rights law defined by unfavorable or unfair treatment of
a person or class of persons in comparison to others who are not members of the protected
class because of race, sex, color, religion, national origin, age, physical/ mental handicap,
sexual harassment, sexual orientation or reprisal for opposition to discriminatory practices.
Direct Discrimination
Where an employee or prospective employee is less favorably treated because of their racial,
marital status, religion, and sexual orientation. This tends to be obvious discrimination, for
example, a female candidate with the best quality experience does not get an interview, but
a male candidate with less qualification does. Or, if she is already in a job, she is ignored for
promotion, the job going for less qualified man.
Indirect Discrimination.
This occurs where the effect of certain conditions, requirements or practices imposed by an
employer has adverse impact disproportionally on one group or other. This is less obvious
form of discrimination.
Discrimination by Victimization
Discrimination by victimization may be defined as less favorable treatment of someone on
the grounds that he or she has done a protected act. The object is to prevent people from
being discouraged from making complaints because of fear of repercussions at work. Indeed,
it could be argued that there is need for such anti-victimization provisions on a wider scale,
for example, in unfair dismissal cases.
Discrimination usually consists of one or more of the following.
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Lecture Notes by Grace Flavia Lamuno
-
-
People who are treated differently based upon their sex, race (colour, nationality,
ethnic origins), marital status, religion, and age. This covers harassment based on any
of the above.
Employees who are paid different rates of pay despite doing similar work
Disabled people who receive less favourable treatment than their work colleagues
who are not disabled.
Members of trade unions who are treated less favourably than non-union members.
Also in reverse, if non-union workers receive less favourable treatment.
Note: An employer may lawfully discriminate in selecting employees for a job where being
from a particular race, sex religion or age is a genuine occupational quality of the job.
Discrimination legislation applies through the employment relationship, during the
recruitment process, in the workplace and following dismissal.
Sexual harassment
Section 7 (1) provides that an employee shall be sexually harassed in that employee’s
employment if that employee’s employer or representative of that employer:
a) Directly or indirectly makes a request of that employee for sexual intercourse or any
other form of sexual activity that contains;
I.
An implied or express promise of preferential treatment in employment
II. An implied or express promise of detrimental treatment in employment
III. N implied or express threat about the present or future employment
status of the employee
b) Uses language whether written or spoken of a sexual nature
c) Uses visual material of a sexual nature
d) Shows physical behavior of a sexual nature which directly or indirectly subjects the
employee to behavior that is unwelcome or offensive to that employee and that
either by its nature or repetition has a detrimental effect on that employee’s
employment, job performance of job satisfaction
If an employee is sexually harassed by the employer or the employer’s representative, the
employee is entitled to lodge a complaint with the labour officer
Employer’s representative is one employed by the employer who either has authority over
the employee alleging sexual harassment or is in a position of authority over other
employees of the work place of the employee alleging sexual harassment.
Employers with over 25 employees should put in place measures to avoid sexual harassment
at the work place.
Administration and Jurisdiction
These are provided for under sections 8- 22 of the Employment Act.
Under section 8, the body charged with the responsibility of administering the Act is the
Directorate of Labour headed by a commissioner acting under the authority of the Minister
as well as the local authorities as may be required under the Local Governments Act.
Section 8 (2) provides that the Commissioner may delegate on the request of a district to a
district Labour officer the exercise of his or her powers and the performance of his or her
duties under this Act and may revoke the delegation by written notice any time.
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Lecture Notes by Grace Flavia Lamuno
Appointment of Officers: Section 9
1) There shall be appointed a Commissioner who shall be responsible for the implementation
of the provisions of this Act, acting under the directions of the Minister.
2) Notice of appointment of the Commissioner shall be published in the Gazette.
3) The Commissioner shall have all the powers of a Labour Officer including others provided
for under this Act
4) Every District Service Commission shall appoint a District Labour Officer and such other
officers as may be necessary for the administration of this Act.
5) For the avoidance of doubt, every district shall have at least one district Labour Officer.
Labour Inspection: Section 10
A Labour officer is empowered to engage in labour inspection which shall include:
a) Enforcement of legal provisions relating to work and protection of workers while
working
b) Offering technical information and advice to employers, employees concerning the
most effective means of complying with the law
c) Notifying the minister of any defects or abuses not covered by the law
Powers of Labour officers: Section 11
Subsection One provides that a labour officer is empowered to:
a) Enter freely and without any previous notice at any hour of the day or night any
premises for inspection
b) Enter by day any premises which he reasonably believes to be liable to inspection
c) Carry out any test, inquiry or examination in order to prove that the law is being
followed and in particular:
i) Question alone or in the presence of witnesses the employer or the staff of the
undertaking of any matters relating to the application of this Act
ii) require the production of any books, registers or other document the keeping of
which is prescribed by law in order to ascertain whether they are in conformity with
the legal provisions and to copy those documents or make extracts from them;
iii) Enforce the posting of notices required by law
iv) Take or remove for purposes of analysis, samples of materials and substances used
or handled, subject to the employer or his representative being notified of any
samples or substances taken or removed for that purpose
Subsection 2 provides that the Labour officer has power to close the workplace where there
is imminent danger to the health or safety of the workers without prior approval of the
commissioner and inform the commissioner of his actions within 48 hours.
Subsection 3 provides that a labour officer may by order and with approval of the
commissioner require:
• an employer to remedy any defect at the work place that is a threat to the
health or safety of the workers
• close down a work place if there is imminent danger to the health of safety of
the workers
Subsection 4 provides that orders made under subsections 2 and 3 shall be subject to appeal
to the industrial Court.
Subsection 5 provides that except where the labour officer considers it prejudicial to the
performance of his or her duties, a labour officer shall notify the employer or their
11
Lecture Notes by Grace Flavia Lamuno
representative immediately on his or her arrival at a working place, for purposes of an
inspection visit.
Subsection 4 provides that a labour officer acting in good faith is not liable for any loss or
cause of action that may arise out of his or her carrying out the provisions of this section.
Labour officer’s power to settle grievances section 12
Any aggrieved worker may report his grievance arising out of a contract of employment to a
labour officer who shall the resolve the matter by agreement between the parties.
Labour officer’s power to investigate and dispose off complaints: section 13
In resolving such grievances, the labour officer has powers to:
a) Investigate the complaint and any defence put forward to such complaint and to settle
or attempt to settle the complaint through conciliation, arbitration, adjudication or
other means he deems fit
b) Require the attendance of any person as a witness or require the production of any
document relating to the complaint
c) Hold hearings to establish whether the complaint is founded or not in accordance
with this Act or any other applicable law
d) Presume the complaint settled if the complainant fails to appear within a specified
period
e) Adjourn the hearing to another date
The Labour officer must give reasons for his or her decision regarding the complaint.
Labour officer’s power to prosecute: section 14
A labour officer may institute civil or criminal proceedings before the industrial Court in
respect of any contravention or alleged contravention of the Act
Obstruction of Officer: section 15
A person commits an offence where he/she;
a) Wilfully delays or obstructs any labour officer in the exercise of any power, duty or
function under this Act
b) Fails to comply with any reasonable directions, orders, requirements, requests,
demand or inquiry of a labour officer made or given in pursuance of any power
conferred upon the labour officer under this Act
c) Conceals or otherwise prevents or attempts to conceal any person from appearing
before or being examined by a labour officer
Criminal Offences: section 16
a) A person who records or causes to be recorded wrong, inaccurate or deficient in an
employee’s record of service, whether retained by an employer or communicated to a
labour officer, with an intention to defraud the employee or the employer or any
public authority, or who acts so as to conceal such fraudulent acts, commits an offence
b) It is an offence for an employer or employee to fail without justifiable cause to reply
to a labour officer’s written request for information within a period of 14 days from
the time that request was received by the employer or the employee as the case may
be
c) Where a court imposes a fine the court may order part or all of the fine to be paid to
the employer or employee as the case may be who has suffered a loss as a consequence
of the commission of the crime
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Lecture Notes by Grace Flavia Lamuno
Conflict of Interest: section 17
Labour officers are not supposed to put themselves in positions that involve conflict of
interest.
Labour Officer not to reveal trade secrets: section 18
A labour officer shall not reveal during or after his appointment, any manufacturing or
commercial secrets or working processes or confidential information that come into their
knowledge while performing their duties.
Labour Advisory Board: Section 21
This is provided for under section 21 which consists of the following;
• chairperson,
• commissioner,
• public officers and representatives of employers and employees
• representative of persons with disabilities
Subsection 2 provides that appointments shall be for a period of 3 years and except for good
cause, no person shall be removed from the Board before expiry of his or her term of
appointment.
Subsection 3 provides that the Chairperson of the Labour Advisory Board shall be appointed
by the Minister and shall be a person well versed with labour matters and a person of high
moral caliber.
Subsection 4 provides that the representatives of employers and employees shall be
nominated for appointment to the Labour Advisory Board by the Federation of Employers
and Federations of Labour Unions respectively.
Subsection 5 provides that there shall be an equal number of representatives of employers
and employees appointed to the Labour Advisory Board at any one time.
Subsection 6 provides that the Labour Advisory Board shall meet as many times as necessary
for the conduct of its business but shall meet at intervals of not more than three months
between each meeting.
Functions of the Labour Advisory Board: Section 22
• To advise the minister on any matter falling under this Act and on any matters affecting
employment and industrial relations as may from time to time be referred to the Board
by the minister.
• The Labour Advisory Board shall advise the Minister on the following;
o Matters concerning relations between Uganda and international labour
organisaton
o Aspects of vocational guidance and vocational training
o Matters concerning the employment service and the development of the
employment service policy
o Formulation and development of policies designed to promote the ranting of
paid educational leave to workers for the purposes of;
1) Training
2) Labour union social and civic education and
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Lecture Notes by Grace Flavia Lamuno
o
3) Labour union education
Formulation and development of a national policy on vocational rehabilitation
and the employment of persons with disabilities.
Subsection 5 provides that the minister shall in consultation with and after approval from
the minister of finance fix the remuneration of the members of the Board.
Oral and Written Contracts: Section 25
A contract of service other than a contract which is required by this Act or any other law to
be in writing may be made orally.
Attestation: Section 26
If made in writing with an employee who cannot read or understand the language in which
it’s written it must be attested by a magistrate or labor officer who must ascertain that the
employee has understood and freely consented to the terms of the contract.
A contract which was not attested to as provided by the Act shall not prejudice the rights of
the employee and may be enforced at his or her instance.
Attestation shall be by means of a written document drawn up by a magistrate or labour
officer and before attesting to the contract the magistrate or labour officer shall:
a) ascertain that the employee has freely consented and that his or her consent has not
been obtained by coercion, undue influence, misrepresentation or mistake
b) ensure that the contract complies with the Act
c) be satisfied that the employee has duly understood the terms of the contract before
giving his or her final agreement to it.
The magistrate of Labour Officer shall give a copy of the document recording the attestation
to the employer and employee and the original shall be retained by the magistrate or labour
officer.
Variation or exclusion of provisions of this Act: section 27
Any contract that excludes any provision of the Act is null and void.
The section also provides that nothing in this section shall prevent the application by
agreement between the parties of terms and conditions, which are more favorable to the
employee than those contained in the Act.
Transfer of contract: section 28
Contracts of service cannot be transferred from one employer to another without the consent
of the employee.
Where a trade or business is transferred in whole or in part the contracts of service of all
employees shall automatically be transferred to the transferee and all rights and obligations
between each employee and transferee shall continue to apply as if they had been rights and
obligations concluded between the employee and transferee.
The transfer will not interrupt the employee’s continuity of service and the contract of
service shall continue with the transferee as if he/she were the transferor.
Death of Employer: section 29
Where the employer’s personal or legal position formed the basis of the employment
relationship with the employee, the death of an employer shall cause the contract of service
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Lecture Notes by Grace Flavia Lamuno
to terminate one month from the date of the employer’s death unless it is otherwise legally
terminated within that period.
Insolvency of Employer: section 30
The bankruptcy or winding up of the employer’s business shall cause the contract of service
of any employee to terminate one month from the date of the bankruptcy or winding up
order.
The above shall not apply where notwithstanding the occurrence of the bankruptcy or
winding up, the business continues to operate or is transferred.
An employee’s claim for wages or entitlements in case of bankruptcy or winding up shall be
governed by section 48.
Inability to pay wages: section 31
Where an employer is unable or refuses to pay wages, a labour officer, on the application of
any employee of that employee shall declare the contract of service terminated.
The termination shall be without prejudice to all outstanding and accrued rights under this
Act, contract of service or any other law.
Employment of children: section 32
Under the Act “child” means
“a person below the age of eighteen years.
•
•
•
•
•
•
•
•
Children under the age of twelve years shall not be employed.
A child between the ages of twelve and fourteen can be employed for light work
carried out under the supervision of an adult of more than eighteen years and which
does not affect the child’s education.
Under the Act “light work” means work that is not physically, mentally, and socially
injurious to the child.
A labor officer has power to discontinue employment or work which is not light work.
It is illegal to employ children in employment that is injurious to their health,
dangerous or hazardous or otherwise unsuitable.
Children shall not be employed at night between the hours of 7 p.m to 7 a.m.
Any person may complain to a Labour Officer if he/she considers that a child is being
employed in breach of this section.
A person aggrieved by the decision of the Labour Officer under this section may
appeal to the Industrial Court.
Medical Examinations: Section 33
The minister may by regulations, require Persons over the age of 18yrs seeking employment
involving exposure to hazards specified by regulations to undergo medical examination
before being engaged by an employer and at regular intervals thereafter.
The medical examination shall be carried out by a qualified medical practitioner and shall
be certified by a district medical officer in the presence of a labor officer.
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Lecture Notes by Grace Flavia Lamuno
The results of the medical examination shall be kept confidential by the medical practitioner
and shall not be disclosed to any other person other than the person who is the subject of
the medical examination without that person’s consent.
Special categories of employees section 34
The Minister shall on the recommendation of the Labour Advisory Board make regulations
governing the employment of persons with disabilities, apprentices and other categories of
employees who in his or her opinion are in need of special protection under the law.
Notification of Vacancies: Section 35
Every person employing an employee shall notify the district labour officer of any
employment vacancy whenever it occurs.
The minister may by regulation exempt special categories of employers from the provisions
of this section.
Departure from Uganda: Section 36
An employee shall not, without his or her consent be required to accompany his or her
employer outside Uganda unless the contract of employment expressly provides so.
Migrant Workers: Section 37
No person shall organize the illicit or clandestine movement of migrants for employment for
purposes of departing from, passing through or arriving in Uganda or give assistance to any
organization for that purpose.
A person shall not employ a person whom he or she knows to be unlawfully in Uganda.
A person who contravenes this section commits an offence.
Recruitment Permit: section 38
It is illegal to engage in the business of operating a recruitment agency unless you are in
possession of a valid recruiting permit issued by the Commissioner for labor.
Under the Act recruitment includes “All operations undertaken with the object of
obtaining or supplying the labor of persons who do not continuously offer their services at
the place of employment”.
The permit shall be subject to such conditions as the commissioner may require and may be
revoked at any time for good cause.
Permits shall not be required for recruitment of domestic servants or for non-manual labor.
Recruitment agencies are required to submit returns of their operations to the
Commissioner.
A person who contravenes this section commits an offence.
Repatriation section 39
All employees recruited for employment from places which are more than 100 kms from
their home have the right to be repatriated at the expense of the employer to the place of
engagement under the following circumstances;
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Lecture Notes by Grace Flavia Lamuno
1. at the expiry or period of service under the contract
2. on the termination of the contract by reason of the employee’s sickness or accident or
3. on termination by agreement between the parties of the contract unless the contract
contains a written provision to the contrary and
4. on termination of the contract by order of the labour officer, industrial court or any
other court.
The family of an employee shall also be entitled to be repatriated at the employer’s expense
in the event of the employee’s repatriation or death where the family was brought at the
place of employment by the employer.
Employees who have been in employment for at least ten years shall be repatriated by the
employer irrespective of their place of recruitment.
A labor officer may exempt an employer from the obligation to repatriate where he is
satisfied that it’s just and equitable to do so or in case of summary dismissal of an employee
for serious misconduct.
WAGES AND RELATED NOTICES
Duty of the Employer to provide work section 40
It is the duty of the employer to provide work in accordance with the contract of service,
during the period for which the contract is binding and on the number of days equal to the
number of working days expressly or impliedly provided for in the contract.
However, the employer is under no obligation to provide work;
1. if the contract is frustrated,
2. the performance of the contract is suspended or
3. it is prevented by an act of God, natural calamities or civil strife
(Civil war exists when two or more opposing parties within a country resort to arms
to settle a conflict or when a substantialportion of the population takes up arms agai
nst the legitimate government of a country), or
4. the employee has terminated the contract.
Without prejudice to the above, an employer will not be liable to provide work where;
1. interruptions are caused by natural calamities,
2. a strike, go-slow or other industrial action or
3. there exists economic and technological reasons which result in a shortage or
reduction of work that is beyond the employer’s control (For example, a machine that
mass produces shoes may cause a cobbler to lose his business). Robots May Steal As
Many As 800 Million Jobs in the Next 13 Years. A new study by the McKinsey Global
Institute estimates that between 400 million and 800 million of today's jobs will be
automated by 2030. Most robots today are used to do repetitive actions or jobs
considered too dangerous for humans. A robot is ideal for going into a building that
has a possible bomb. Robots are also used in factories to build things like cars, candy
bars, and electronics.
Where an employer fails to provide work under this section, he or she shall pay to the
employee, in respect of every day on which he or she shall fail, wages at the same rate as if
the employee had performed a day’s work.
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Lecture Notes by Grace Flavia Lamuno
Where the employer offers work at the same wage rate, suitable alternative employment
which the employee declines to undertake, the employer shall not be liable for breaching
this duty.
The exemption to provide work arising out of economic and technological reasons is limited
to a maximum of 15 days in any one six month period.
Entitlement to wages section 41
Under the Act “wages” means
“remuneration or earnings capable of being expressed in terms of money and fixed by
mutual agreement or by national laws or regulations, which are payable under an oral or
written contract of service for work done or to be done, or for services rendered or to be
rendered but excluding any contributions made or to be made by the employer in respect
of his or her employee’s insurance, medical care, education, training, invalidity, retirement
pension, post service gratuity or severance allowance”.
Wages shall be paid only in legal tender.
An employer may with the prior written consent of the employee pay the wages by bank
cheque, postal order, money order or by direct payment to the employee’s account.
• A cheque, or check (American English; see spelling differences), is a document that
orders a bank to paya specific amount of money from a person's account to the person
in whose name the cheque has been issued.
• A postal order is a financial instrument usually intended for sending money through
the mail. It is purchased at a post office and is payable at another post office to the
named recipient. A small fee for the service, known as poundage, is paid by the
purchaser.
• A money order is a certificate, usually issued by governments and banking
institutions, that allows the stated payee to receive cash on demand. A money
order functions much like a check, in that the person who purchased the money
order may stop payment.
The minister can provide for partial payment of wages in the form of allowances in kind but
in no case shall payment be in the form of alcoholic beverages or noxious drugs and the value
attributed to such allowance must be fair and reasonable.
An employee is free to spend his wages wherever he desires and the employer cannot compel
him to spend his money in any particular manner. An employee shall not be obliged to make
use of any shops established by the employer for the use of his or her employees.
Wages shall not be payable to any employee in respect of any period where he or she has
been sentenced and imprisoned by a court of law.
An employee is not entitled to receive wages in respect of any period where he or she is
absent from work without authorization or good cause except that in the case of an employee
who has completed at least three months’ continuous service with his or her employer, the
following shall not constitute absence without good cause:
• Absence attributable to the occurrence of exceptional events preventing the employee
from reaching his or her place of work of or from working.
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Lecture Notes by Grace Flavia Lamuno
•
•
Absence attributable to a summons to attend a court of law or any other public
authority having power to compel attendance or
Absence attributable to the death of a member of the family or dependant relative
subject to a maximum of three days absence on any one occasion and a maximum of
six days in any one calendar year.
An employee who has completed atleast three months continuous service and is absent from
work on account of any of the above grounds, is entitled to receive wages as though he or she
had not been absent from work and had fully performed work under the contract of service
and the wages shall not be subject to any deduction.
Employers not incorporated in or resident in Uganda shall be required to pay a bond of one
month’s wages for each of their employees that shall be used to pay wages in the event that
the employer fails to do so.
A bond paid by an employer shall be held by the ministry responsible for Labour on behalf
of that employee in a separate interest bearing account and shall not be used of any purpose
other than paying wages and other entitlements to that employer’s employees in the event
of default by the employer.
Death of an employee section 42
In the event of death during the term of the contract of employment, any remuneration due
to the employee shall be paid by the employer to the employee’s heirs or legal
representatives.
Where an employee dies, while at work or on the way to work, the employer shall be required
to notify the district Labour officer about the death who in turn shall notify the
commissioner.
Where an employee dies, while at work or on the way to work, the employer shall be required
to transport the employee’s body to a place of burial determined by the employee’s next of
kin.
Payment of wages section 43
Payment of wages shall take place at the employee’s work place or if working at more than
one location, at the employer’s premises or where his or her work is administered.
It is illegal to pay wages in premises that are licensed for the sale of alcoholic beverages or
in places of amusement except if the employees are employed there.
An agreement made by the employer with regard to the place where or the manner in which
or the person with whom any wages paid to the employee shall be expended is null and void.
In the absence of a prior written agreement to the contrary, an employee engaged;
a) For one day at a time shall be paid their wages at the end of the day
b) To be paid per hour, day or week shall be paid their wages at the end of the hour, day
or week
c) To be paid fortnightly or monthly shall be paid at the end of each fortnight or month
and
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Lecture Notes by Grace Flavia Lamuno
d) To be paid by piece of work done or by results shall be paid at intervals of not more
than one fortnight.
Employees who are housed by the employer shall not vacate the premises until their
terminal benefits have been paid.
Upon termination of employment in whatever manner, an employer shall within seven days
from the date of termination pay to the employee all their wages together with any other
remuneration and accrued benefits that they are entitled to.
Payment of wages to another section 44
An employee’s wages cannot be paid to any other person without his or her written
permission except where it is expressly provided for by the law.
Prohibition on certain deductions section 45
Remuneration earned by or payable to an employee shall be paid directly to the employee.
No deduction shall be made from the wages of an employee with a view to ensuring a direct
or indirect payment to his or her employer or the employer’s representative or to any
intermediary for the purpose of obtaining or retaining employment.
All employers shall be required to provide employees with the equipment, tools and material
necessary for that employee to perform his or her duties and shall not require that employee
to pay the employer or any other person for the equipment, tools or material.
Lawful deductions section 46
The employer is permitted to make the following deductions from the employee’s
remuneration;
•
•
•
•
Tax, rate, subscription or contribution imposed by law,
contributions to provident or pension fund or scheme established by the employer or
some other person with the written consent of the employee,
rent deductions for accommodation provided by the employer where the employee
has agreed in writing to the deduction
and Union dues.
It is prohibited to deduction money to pay for the employee’s protective gear or tools of trade
which must be provided by the employer.
Not more than two thirds of an employee’s remuneration shall be attached in the event of
attachment by operation of law.
Repayment section 47
An employer who acts in contravention of the provisions of this part of the Act is liable to
repay any remuneration wrongfully withheld or wrongfully deducted from the employee.
A request for repayment shall be made to the Labour Officer and shall be made not later
than six years after the alleged unlawful deduction has been made.
Preferential Claims section 48
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Lecture Notes by Grace Flavia Lamuno
In the event of an employer’s bankruptcy or winding up, all wages and other payments due
to employee, for a period of twenty six weeks immediately preceding the bankruptcy or
winding up, shall have priority over all other claims against the employer.
Union Dues section 49
Union dues means any regular or periodic subscription required to be paid by a union
member to any Labour union of which he or she is a member under the rules, as a condition
of his or her membership.
The General Secretary of a Labour union or his or her representative may issue to every
employer who employs any person who is a member of a Labour union written notice
attached with the written consent of the respective employee, requiring the employer to;
• deduct from the wages of his or her employees who are members of the Labour union
such sum specified as union dues in the periods specified in the notice
• pay to the Labour union the sums deducted
Where an employer to whom a written notice has been given refuses to comply with the
provisions of the notice, he or she shall be liable to pay to the Labour union a sum equal to
3% of the total amount of the deduction for each month during which the sums are not paid
to the union, the outstanding in addition to the union dues.
Pay statements section 50
Every employee shall receive with each payment of wages an itemized pay statement from
the employer in a form and language which an employee can understand setting out;
• the amount of all deductions from the wages due at the end of that pay period,
• the amount of all deductions from the wages during that pay period and the purpose
for each of the deductions and
• the employee’s net wages payable at the end of that pay period.
Where an employee fails to provide a pay statement or fails to provide a pay statement that
is accurate, an employee shall have the right to complain to a Labour officer.
Following a complaint lodged by an employee, a Labour officer shall have the power to issue
one or more written statements which shall take the place of any pay statement the employer
has refused to issue or amend any inaccuracies in a pay statement issued in respect of which
a complaint has been made.
A Labour officer shall have the power to order any employer to pay to the employee the
aggregate of any deductions from the employee’s wages made by the employer in a manner
that was not in accordance with an accurate pay statement.
Any written statement issued by the Labour officer shall be regarded as if it had been duly
issued by the employer.
DUTIES OF AN EMPLOYER
1. Duty to provide work: According to sec 40 of the Employment Act, every employer
must provide his employee with work.
2. Indemnity. An employer must indemnify his employee where the employee has
incurred an expense while acting on the employer’s behalf, except where:
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Lecture Notes by Grace Flavia Lamuno
a) The employee knew that he was doing an unlawful act.
b) The employee knew that the employer had no right to give the order in question.
3. Equipment and Premises (Safety). The employer must take reasonable care to
make his premises safe. Examples of unsafe premises include structural defects, bad
ventilation, unsafe insulation, slippery floors or staircases, etc. Equipment includes
plant; tools and materials, i.e. all those things that a person may be expected to work
must be of a safe nature. The employer fails in this duty in the following circumstances:
a) He fails to supply suitable equipment and the employee is forced to improvise:
b) He provides defective equipment knowingly, or which he should have known on a
reasonable examination.
c) He fails to remedy defects that have been brought to his notice.
4. Duty to pay wages
According to sec 41 of the Employment Act, wages must be paid to the employee in legal
tender. They may be paid by bank cheque, postal order, and money order. Wages continue
to be paid even in period of sickness.
RIGHTS AND DUTIES IN EMPLOYMENT
Weekly rest section 51
An employee shall not be required to work for six consecutive days without a day’s rest,
which shall be taken on any day which is customary or as shall be agreed between the parties.
The Minister may by regulations exclude from the operation of the above section
- persons holding high managerial positions
- persons working in family establishments employing ore than five dependent
relatives
Pay calculation section 52
There shall be no deduction of wages on account of an employee not being at work on the
weekly rest day where wages are calculated by reference to a period of one week or more.
In the absence of an agreement to the contrary payment of wages shall be assumed to be in
respect of a forty eight-hour week and hours worked in excess of forty eight hours per week
shall be regarded as “overtime hours”.
Length of working hours per week section 53
The maximum working hours per week shall be forty eight hours but the employer and
employee may agree that the maximum working hours per week shall not be less than forty
eight or that the normal working hours shall be more than forty eight hours per week.
Hours of work shall not exceed ten hours per day or fifty six hours per week except where
persons are employed in shifts, they can work for more than ten hours a day or forty eight
hours in any one week but the average number of hours over a period of three weeks should
not exceed more than ten hours a day and fifty six hours a week.
There will be a thirty minute break granted to employees for every eight hours worked.
For overtime, employees shall be remunerated at the minimum rate of one and a half times
of the normal hourly rate if the overtime is on a normal working day and at two times the
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Lecture Notes by Grace Flavia Lamuno
hourly rate paid for two hours for every hour worked) where the overtime is worked on
gazetted public holidays.
The minister may after consultation with the Labor Advisory Board regulate the maximum
number of working hours and may by order provide for temporary exceptions in extraordinary situations where the public interest so requires.
Annual leave and public holidays section 54
All employees who have performed continuous service for the employer for a minimum
period of six months or who normally work under a contract of service for sixteen hours a
week or more are entitled to;
• once every calendar year to a holiday with full pay at the rate of seven days in respect
of each period of a continuous four months service to be taken at such time as may
be agreed between the parties.
• A day’s holiday with full pay on every public holiday or where he/she works on a
public holiday to a day’s holiday with full pay at the expense of the employer in lieu
of the holiday.
Any agreement, to relinquish the right to annual leave or otherwise forego a day’s holiday
and receive compensation for it shall be null and void.
Upon termination of a contract of employment an employee shall be entitled to their holiday
proportionate to the time worked or compensation in lieu of the holiday.
Sick pay section 55
An employee who has completed more than one months’ continuous service due to sickness
or injury is entitled to sick pay as follows;
• for the first month of absence shall be entitled to full wages and every other benefit
stipulated in the contract
• at the expiry of the second month the employer is entitled to terminate the contract
upon compliance with the terms of the contract up to the time of termination.
However for the employee to be entitled to sick pay the employer shall;
• notify the employer of their absence and the reason for it and
• produce if requested by the employer a written certificate signed by a qualified
medical practitioner certifying the incapacity for work and the duration of the
incapacity
This section applies to employees who normally work for sixteen hours a week.
Maternity leave SECTION 56
All female employees shall have a right to maternity leave of a period of sixty working days
away from work on full wages of which at least four weeks shall follow the child birth or
miscarriage.
The employee shall also have the right to return to the job which she held or to a reasonably
suitable alternative on terms and conditions not less favorable than those which applied to
her previous job.
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Lecture Notes by Grace Flavia Lamuno
In the event of sickness affecting either the mother or the child making the mother’s return
to work inadvisable, the right of return shall be available for eight weeks after child birth or
a miscarriage
A female employee is entitled to all the above rights after giving not less than seven days
notice in advance or a shorter period as may be reasonable in the circumstances, of her
intention to return to work. The notice shall be in writing is the employer so requests.
Paternity leave section 57
A male employee shall be entitled to fourteen working days leave with full pay yearly
immediately after the delivery or miscarriage of his wife and shall have the right to return to
the job he held before his paternity leave.
Notice periods’ section 58
A contact of employment shall not be terminated by an employer unless he or she gives
notice to the employee except:
• where the contract of employment is terminated summarily
• where the reason for termination, is attainment of retirement age
The notice must be in writing and in a form and language that the employee.
The notice period required shall be:
a) not less than two weeks where the employee has been employed for a period of more
than six months but less than a year;
b) not less than one month where the employee has been employed for a period of more
than twelve months but less than five years;
c) not less than two months where the employee has been employed for period of more
than five years but less than ten years;
d) not less than three months where the service is ten years or more;
Any agreement between the parties to exclude the operation of this section shall be of no
effect but this shall not prevent an employee from accepting payment in lieu of notice.
Any outstanding period of annual leave to which an employee is entitled on the termination
of the employee’s employment shall not be included in any period of notice which the
employee is entitled to under this section.
During the notice period the employee shall be given at least one half day off per week for
the purpose of seeking employment.
Written Particulars SECTION 59
An employee is entitled to receive written notice from the employer of the following
particulars:
a) full names and addresses of the parties to the contract
b) date on which employment begun
c) title of job employee is employed to do
d) place where employee’s duties are to take place
e) wages employee is entitled to get, how they’ll be calculated, intervals in which they’ll
be paid, deductions to be made
f) rate of any overtime payment
g) employee’s normal working hours and the shift of days the work is to be done
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Lecture Notes by Grace Flavia Lamuno
h) number of days annual leave to which employee is entitled and the entitlement to
wages during such leave
i) terms and conditions relating to incapacity for work due to sickness or injury
j) length of notice in case of any excess provided for under this Act
The notice shall be given to the employee by the employer not later than twelve weeks from
the date of commencement of the employment.
Where there is an agreed change affecting any of the matters referred to in subsection one
the employer shall issue a written notice to the employee of the change.
An employer shall retain a copy of the written particulars and of any changes in them and
shall produce a copy of demand to the labour officer.
Written Particulars to act as evidence SECTION 60
Where there is a dispute between the employer and employee regarding the terms and
conditions of service;
• The written particulars together with any notice of change shall be admissible
evidence of the existence of the terms and conditions about which there is a
dispute
• There shall be a rebuttable presumption that the terms and conditions of
employment are accurately stated in the written particulars and in any notified
changes
Certificate of Service SECTION 61
On the termination of a contract of service, an employer if so requested by the employee
shall provide the employee with a certificate indicating;
a) Names and addresses of employer and employee
b) Nature of the employer’s business
c) Length of the employee’s period of continuous employment with the employer
d) Capacity in which the employee was employed prior to termination
e) Wages payable at the date of termination and
f) Where the employee so requests the reason or reasons for the termination of the
employee’s contract
The certificate shall not contain any judgment on or evaluation of the employee’s work but
where it is requested by the employee, the employer may provide it in a separate document.
The certificate shall as far as is practicable be written in a language the employee may
reasonably be expected to understand.
DUTIES OF EMPLOYEES
1. Indemnity/compensation; Where the employer incurs some loss because of his
liability for the wrongful act of his employee, the employee may be liable to indemnify
(compensate) his employer. In LISTER v ROMFORD ICE & COLD STORAGE LTD
a driver was employed by the company. His father assisted him. Due to his negligence
his father was injured and claimed damages against the company. The company in turn
claimed that the driver should indemnify it against the loss suffered. It was held that
driver should indemnify the company due to his negligence.
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Lecture Notes by Grace Flavia Lamuno
2. Good Conduct; the employee must not misconduct himself. The term
misconduct includes, persistent laziness, immorality, dishonesty and drunkenness.
Misconduct will justify disciplinary dismissal if it directly interferes with the business of
the employer, or the employee’s ability to perform his services. In PEPPER v WEBB a
man who was employed as a gardener showed disinterest in the garden, refused to
perform certain tasks in the garden and was abusive to his employer and he was
dismissed. Court held that it was proper to dismiss him because of his misconduct.
3. Personal service; the employee must personally perform the duties of his employer.
He must not allow others outside the scope of his employer’s control to perform his tasks.
In ILKIW v SAMUELS a lorry driver allowed another person to drive his lorry. He did
this against express instructions from his employer. As a result, a third party was injured.
The employer was liable because of the negligence of his own driver (the person
responsible for the operation of the lorry). And court also held that the employee should
compensate his employers for their negligence.
4. Loyalty and good faith; the employee must not accept bribes or make secret profits.
He must therefore act honestly. In BOSTON DEEP SEA FISHING CO v ANSELL
while employed as managing director with the plaintiff company Ansell contracted with
a shipbuilding company for supply of ships, he took a secret commission. It was held
that Ansell’s action of taking a secret commission was a breach of his duty to his employer
to act in good faith.
5. Interests of the employer; The employee must do nothing to harm his employer’s
interests, even in his spare time: In HIVAC v PARK ROYAL SCIENTIFIC
INSTRUMENTS LTD employees of a company worked for another company( a rival
firm) in their space time. It was held that the employees could be stopped from working
for a competitor in their spare time.
6. An employee should do nothing to cause his employer to lose confidence in
him:In SINCLAIR v NEIGHBOUR a shop manager took ₤15 from the shop although
he knew his employer would not approve. The employer discovered the employee’s act
and dismissed him without notice. It was held that dismissal was justified since the
employee had acted dishonestly.
7. Careful service; an employee must exercise due care and skill in the performance of
his duties. He must also perform the tasks diligently and efficiently. In HARMER v
CORNELIUS a person who was given a job as a painter. The paintings he made were
very bad and he was dismissed. court held that the dismissal was justified since he was
incompetent.
8. In SUPERLUX v PLAISTED, a vacuum – cleaner salesman left his van outside his
home overnight. Several cleaners were stolen. It was held that this amounted to breach
of the duty of careful service and so the dismissal was justified.
9. Trade secrecy; the employee must maintain secrecy over his employer’s affairs during
the time of his employment. The employee is under an obligation to his employers not to
disclose confidential information obtained by him in the course of, and as a result of his
employment. In BENTS BREWERY CO LTD v HOGAN a trade union official invited
certain employees to disclose particulars of the total amount of the sales made and the
wages paid at the branches of the company in which they were employed. It was held that
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Lecture Notes by Grace Flavia Lamuno
if any employee gave that information he would commit a breach of contract, and the
trade union official would be liable for inducing such breach.
10. Inventions; It is the duty of the employee to disclose all inventions made using the
facilities of the employer. In BRITISH SYPHON COMPANY LTD v HOMEWOOD
D was employed as a technical adviser and was asked to design a soda siphon, which he
did, but he registered the siphon in his own name. It was held that the invention belonged
to the employer.
11. Obedience; The employee must obey all lawful and justifiable orders given by his
employer in the ordinary course of business.
12. Notice; the employee must give proper notice of termination of his services according
to the terms of his contract or statute.
DISCIPLINE AND TERMINATION
Common law terms: The employee’s duties
1) An employee must be willing to give personal service. For instance the employee
cannot send a replacement if he/she is unwell or unwilling to work (Ready Mixed
Concrete (SE) Ltd V. Minister of Pensions and National Insurance already
cited above)
2) An employee must obey the lawful orders of the employer, so long as they are within
the scope of the contract, are not illegal and do not place the employee in personal
danger (Ottoman Bank V. Chakarian (1930) AC 277. According to the old
English case of Turner V Mason (1845) 14 M&W 112 the general rule is
obedience and wilful disobedience is ground for dismissal.
3) The employee must take reasonable care in performing his duties. What is reasonable
depends on the job and the qualifications of the employee. A professional or skilled
employee must exercise the care and skill expected of a reasonably competent person
of his profession and trade. An employee who causes his employer loss by breach of
this duty may be liable to compensate the employer (Lister V. Romford Ice and
Clod Storage Co. Ltd (1957) AC 555.
4) The employee owes a duty to give faithful service to the employer. The employee
should serve the employer’s best interests while working (Secretary of State for
Employment V.ASLEF (No 2) (1972) 2 ALL ER 949). This entails a number of
things:
a) The employee must not let his/her interest conflict with those of the employer,
so that although employees may do what they like in their own time in general,
during their employer’s time they should work only on their employers
account, and in their own time should not do any work which involves a
conflict with their employer’s interests. An employee is for instance not
allowed to work for a competitor.
b) The employee must not make a secret profit out of employment. This involve
not taking bribes by the employee to influence the performance of the
employment and to disclose to and, if requested to account to the employer for
any gifts or benefit received in the course of employment, however innocently
given or taken (Boston Deep Sea Fishing & Ice Co. Ansell (1888) Ch D
339).
c) The employee has a duty not to disclose confidential information during the
duration of employment and to an extent after. Confidential information is
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Lecture Notes by Grace Flavia Lamuno
information the employer believes would be prejudicial if released, and which
the employer reasonably believes is secret, judged by trade practice. A
distinction is made between information, which is learned as part of a the
employee’s work, which should not be disclosed during employment and
information regarding specific trade secrets, which are so confidential that
they cannot be disclosed either during or after employment.
An employer who wishes to protect his/her business against possible
disclosure by an ex-employee can do so by means of a restrictive covenant in
his contract of employment. Such a restriction should be no more than
necessary in terms of area covered, time it lasts, and sphere of employment
covered, to protect the employer’s legitimate interests in protecting customers
and confidential information.
d) The employee must give the employer the benefit of any inventions made in
the course of employment.
DISCIPLINE AND TERMINATION
Under section 62, an employer shall impose a disciplinary penalty on the employee because
of neglect, failure or alleged failure on the part of the employee to perform his duties under
the contract of service
Disciplinary penalties include a written warning, reprimand and suspension from work. An
employer shall be entitled to impose a disciplinary penalty on the employee where it is
reasonable to do so. What is reasonable shall depend on;
a) the nature of the neglect, failure or alleged failure on the part of the employee,
b) the penalty imposed by the employer,
c) the procedure followed by the employer in imposing the penalty,
d) the reformed conduct of the employee,
e) his or her personal circumstances,
f) the Code of Discipline set out in schedule I of the Act
An employee shall not be suspended for more than fifteen days in any six month period.
Except in exceptional circumstances an employer who fails to impose a disciplinary penalty
within 15 days from the time he/she becomes aware of the occurrence that gives rise to
disciplinary action shall be deemed to have waived the right to do so.
Under section 63, where an employer is conducting an inquiry which he/she believes may
lead to dismissal of the employee, the employer may suspend the employee with half pay
and the suspension shall not exceed four weeks.
Under section 64, where the employee believes that the employer is not justified in imposing
a disciplinary penalty, the employee may within four weeks from the date of the imposition
of the penalty make a written or oral complaint to the labour officer.
The Labour Officer shall investigate the complaint and seek to settle the matter by mediation
and the labour officer shall decide whether the imposition of the penalty was or was not
reasonable and communicate his decision in writing to both the employer and employee.
Where a labour officer decides that the penalty was unreasonable, he/she shall make the
following orders;
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Lecture Notes by Grace Flavia Lamuno
a) that the original penalty be revoked
b) that the original penalty be revoked and be replaced by another lesser specified
penalty
c) that the employer pays the employee the wages which would otherwise have been due
to the employee during the period of suspension with half pay
Where the penalty has been revoked, no reference to the penalty shall appear in the
employee’s record but where the penalty has been reduced; only the lesser penalty shall be
noted in the record.
TERMINATION
The right of a party to terminate a contract of employment arises in three ways:
a) By express provision of the contract
b) By the provisions of the employment Act
c) Under common law
EXPRESS PROVISIONS OF THE CONTRACT
In practice, some contracts provide that they may be terminated by notice. There is no doubt
that in such cases the contract may be terminated in accordance with such provisions if it is
not contrary to the provisions of nay other law.
TERMINATION UNDER THE EMPLOYMENT ACT
Under the Act, an employment contract can be terminated:
• By employer upon giving notice,
• Where the contract is for a fixed term or task, upon the expiry of the term or
performance of the task and the contract is not renewed within a week’s time
from the date of expiry on the same terms or not less favourbale terms,
• Where it is ended by the employee with or without notice due to unreasonable
conduct on the part of the employer,
• Where the contract is ended by the employee in circumstances where the
employer gave notice to the employee but before expiry of the notice,
• By death of the employee before expiry of the term but termination due to
death shall not prejudice the legal claims of his/her personal representatives
for what was due to him/her
• The contract may also be terminated with the consent of an authorized officer
in the event that an employee is unable to fulfill the contract or if owing to
sickness or accident the employee is unable to fulfill the contract but this is
subject to conditions safeguarding the right of the employee to wages and or
any compensation due to him/her in respect of accident or disease and his/her
right of repatriation.
• The contract may be terminated by agreement of the parties but this is also
subject to conditions safeguarding the employee from loss of his/her right to
repatriation and other benefits
• A contract may be terminated on the application of either party to court
• A probationary contract may be terminated by either party giving 7 days notice
or by payment of 7 days wages in lieu of notice. A probationary period of
service shall not exceed a period of six months under the Act.
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Lecture Notes by Grace Flavia Lamuno
TERMINATION UNDER COMMON LAW
In the absence of any express provisions in the contract, the right to terminate a contract of
employment by reasonable notice by either party is implied at common law.
Apart from the contracts for a fixed period, the right to terminate a contract of
employment is so basic for the employment relationship that it cannot be easily displaced
except where the terms of contract to that effect are so clear. This right is embodied in the
Employment Act, which provides that nothing shall preclude either party from terminating
a contract of service for lawful cause.
In the English case of McLELLAND Vs NORTHERN IRELAND GENERAL HEALTH
BOARD (1957) 2 AV E.R 129, the House of Lords clearly expressed the view that the fact
that an appointment is expressed to be permanent and pensionable is not in itself sufficient
to displace the right to terminate.
Also in the case of JABI Vs MBALE MUNICIPAL COUNCIL (1973) HCB 191 and
KIRYA Vs EAST AFRICAN RAILWAY CORPORATION (1975) HCB 329 both of
which concerned employees on permanent terms, employees rights to terminate by notice
was upheld by the court.
In the case of EA AIRWAYS Vs KNIGHT (1975) EA 165 the then court of Appeal for
East Africa expressed the view that permanent employment does not mean employment for
life or until retirement. It merely means that the employment is to continue for an indefinite
period of time but is not a life appointment with a status of irremovability.
However, parties may enter into a contract of employment for life, in such cases the terms
of the contract must clearly express such an intervention. Therefore the right to terminate
unless expressly excluded by the terms of the contract is absolute and can be exercised
arbitrarily and at any time subject to the requirement of giving reasonable notice or payment
of salary/wages in lieu of notice. The reasons for this exercise are irrelevant and can not be
inquired into. As stated by Lord Reid in the case of RIDGE Vs BALDWIN (1984) AC 40,
it can be exercised for any reason or for none.
However, this right is subject to the requirement that the party wishing to exercise it can
only do so after giving the other reasonable notice of the intention to do so. As already noted,
the giving of notice or payment in lieu of notice is a statutory legal obligation under the
Employment Act. Therefore, under the common law, a party wishing to terminate a contract
of employment shall give reasonable notice of the intention to do so or pay salary/wages in
lieu of the notice. This right can not be easily displaced even where there is an express
provision in the contract to the contrary as was stated in the case of AFRICAN
ASSOCIATION LTD Vs ALLEN (1910) 1 KB 396 where it was held that reasonable
notice was still necessary when a contract provided that it was terminable at the absolute
discretion of the employer.
In a Tanzanian case of PATEL Vs INTERNATIONAL MOTOR MART (1969) EA 303
it was held that notice was required even in a probationary contract. In Uganda in the case
of KAFUNA Vs MASAKA DISTRICT COOPERATIVE UNION (1975) HCB 283 a
clause in the contract of employment provided that an employee would be given 3 warnings
in writing if his/her work or conduct was not up to standard and after the third warning his
services could be terminated. The Union purported to dismiss Kafuna without notice and
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Lecture Notes by Grace Flavia Lamuno
court held that although there was no reference to notice in the above case, it was to be
inferred that termination was to be subject to the requirement of giving notice.
The purpose of reasonable notice in the case of an employee is to enable him/her seek
alternative employment and in the case of an employer to engage another employee.
The length of notice is sometimes specified in the contract or it may be determined from
provisions of the Employment Act or common law. In practice, the common law can not be
invoked where there are express conditions in the contract providing for a notice period but
any such express provision has to be applied subject to the minimum periods of notice
provided under the Employment Act.
An express provision can not provide for a period of notice shorter than that provided for in
the Act but the minimum period do not affect any contractual period longer than provided
for in the Act.
Duration of notice whether provided for in the contract or under the common law normally
depends on the type of work whether the employee is on temporary or probationary terms,
permanent or pensionable terms, seniority of the employee, duration of employment and
the employee’s prospects of obtaining suitable alternative employment.
Though the operation of the common law rule of reasonable notice applies in Uganda, it can
not be used in Ugandan courts to arrive at a period of notice shorter than the notice the
employee is entitled to under the Act. However, where the application of this rule would
result in a longer period of notice for the employee, the minimum period of notice in the Act
does not apply.
It is therefore more advantageous for an employee to have the period of notice determined
on the basis of common law. This is because under the Act the notice period is based solely
on the length of an employee’s service for instance one weeks notice for service that has
lasted less than 12 months. On the other hand, the common law concept is much wider as
what is reasonable notice is a question of fact depending on the circumstances of each
particular case.
Some of the factors taken into account in determining reasonable notice under common law
are:
- Length of service
- Seniority of the job
- Whether the employee is on permanent and pensionable terms or
probationary/temporary terms
- Employee’s prospects of obtaining suitable alternative employment
- Age of the employee
A combination of these factors will in many cases result in much longer periods of notice
than those provided for in the Act. In the case of KIRYA Vs EARAILWAYS
CORPORATION Kirya had served for a long period in the defendant company rising from
the lower ranks to the position of yard foreman which he held on permanent and
pensionable terms. The defendant company terminated his employment and it was held that
he was entitled to at least 6 months notice of termination.
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Lecture Notes by Grace Flavia Lamuno
In the Kenyan case of EA RAILWAYS Vs KNIGHT where Knight an expatriate pilot was
dismissed. It was held that he was entitled to 18 months notice of termination.
It is important that the notice must be properly given. The Act provides that it must be in
writing. It must also be clear and specific, as any ambiguity will be interpreted against the
person giving it. In particular it must state the duration of the notice and if necessary how
that duration is to be computed. It should be noted that the duration of notice starts running
from the date the notice is communicated to the other party.
A proper notice shall not be retroactive or be back dated and the contract of employment
terminates at the expiry of the notice.
Notification and Hearing before Dismissal
Under section 66, an employer shall before dismissing an employee explain to the employee
in a language he understands, the reason for which the employer is considering dismissal
and the employee is entitled to have another person of his or her choice present during the
explanation.
An employer shall before dismissing the employee, hear and consider any representations
which the employee or his representative shall make regarding the grounds for dismissal.
The employer shall give the employee and the representative reasonable time within which
to prepare the representations.
An employer who fails to comply with this section is liable to pay the employee a sum
equivalent to four weeks net pay.
A complaint under this section shall be made within three months from the date of dismissal.
Probationary Contracts
Section 67 provides that section 66 does not apply to probationary contracts. The section
also provides that a maximum length of a probationary period is six months but it can be
extended for another period of six months with the agreement of the employer.
An employer shall not employ an employee under a probationary contract on more than one
occasion. A probationary contract can be terminated by 14 days’ notice given by either party
or by the employer paying seven day’s wages in lieu of notice.
Proof of reason of termination
Section 68 provides that in any claim arising out of termination, the employer shall prove
the reason for dismissal, failure of which the dismissal shall be deemed to be unfair.
TERMINATION UPON BREACH/SUMMARY DISMISSAL
Section 69 provides that summary dismissal is where an employer terminates the contract
of service without notice or with less notice than that given under the law.
The section also provides that this occurs when an employee has lawfully
breached/fundamentally broken a term in the employment contract. It may be a term
written in the contract of employment or one implied under the common law.
A breach is fundamental if it amounts to a repudiation of the contract. Such a breach confers
on the innocent party an immediate right to terminate the contract. A breach is fundamental
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Lecture Notes by Grace Flavia Lamuno
if it deprived the innocent party of the benefit of the contract and entitles to treat the contract
as ended.
Apart from summary dismissal at common law, Human Relations manuals, contracts of
employment, disciplinary codes of conduct entered into between labor unions and
employers normally provide for grounds of dismissal. Cases of theft, embezzlement of
company funds and bribery normally attract instant or summary dismissal/ Otherwise most
offences by employees such as lateness, absenteeism from duty, leaving work without
permission, fighting at work, failure to carry out lawful orders, reporting for duty while
intoxicated, careless damage to property are normally preceded by warnings and suspension
before dismissal.
Section 70 provides that that an employee that he/she has been summarily dismissed
without justification may within six months after the date of dismissal lodge a complaint
with a labour officer who shall seek to settle the matter in the fisrt instance by mediation.
A labour officer shall determine whether the dismissal was justified taking into account
section 75 and the code of discipline set out in schedule 1.
Where a labour officer finds out that the dismissal was unjustified he shall inform the parties
and order the employer to;
a) Pay the employee the net wages the employee would have earned had the employee
been given notice
b) Where the dismissal ends the contract before the completion of any service upon
which the employee’s wages become due, pay the proportion of the wages due for the
period of time of time for which the employee has worked
c) Any other losses consequent upon the dismissal and arising between the date of
dismissal and the date of expiry of the period of notice.
For any compliant of unfair dismissal, the burden of proving that a dismissal has occurred
rests on the employee and the burden of proving that the dismissal was justified rests on the
employer.
Unfair Termination
Section 71 provides that an employee who has employed for more than thirteen weeks of
continuous service shall have the right to complain that he/she has been unfairly
terminated. The complaint shall be made to the labour officer within three months from the
date of dismissal.
This section does not apply to employees who have been terminated or dismissed on
probationary contracts.
If court finds that the dismissal is unfair, the court may order;
a) The employer to reinstate the employee;
b) The employer to pay compensation to the employee.
The court shall order the employer to reinstate/re-employ the employee unless;
a) The employee does not wish to be reinstated
b) The circumstances surrounding the dismissal are such that a continued employment
relationship would be intolerable
c) It is not reasonably practicable to reinstate the employee
d) The dismissal is unfair only because the employer did not follow a proper procedure.
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Lecture Notes by Grace Flavia Lamuno
Section 72 provides that in case of complaints made under sections 64 (complaints regarding
imposition of disciplinary penalties), 70 (complaints relating to summary dismissal) and 71
(complaints relating to unfair termination), a party may be represented by an Advocate, or
by an official of a labour union or by an official from the employer’s organization and
substantive justice shall be administered without undue regard to technicalities.
Criteria for unfair termination
Section 73 provides that a termination shall be unfair where;
a) The termination is for any of the reasons specified in section 75
b) It is found out that in all the circumstances the employer did not act with justice and
equity in terminating the employee from service.
In determining whether it was just and equitable to terminate the employee’s services the
labour officer shall take into account the following;
a) Code of discipline set out in 1st schedule
b) The procedures employed by the employer in reaching a decision to terminate the
employee, the communication of that decision to the employee and the handling of
any appeal against the decision
c) The conduct of the employee up to the date of termination
d) The extent to which the employer has complied with any statutory requirement
connected with the termination, including the issuing of a certificate under section 61
and the procedural requirements set out in section 66
e) The previous practice of the employer in dealing with the type of circumstances that
led to the termination
Reasons for Termination/Discipline
Section 75 provides that the following shall not constitute fair reasons for dismissal or
imposing a penalty
a) A female employee’s pregnancy or any reasons connected to the pregnancy
b) The fact that an employee took or proposed to take leave to which he/she was entitled
under the law or contract ;
c) An employee’s membership or proposed membership in a labour union;
d) Participation or proposed participation in the activities of a labour union outside
working hours or with the consent of the employer within working hours;
e) An employee’s seeking of office, or acting or having acted in the capacity of an officer
of a labour union or a worker’s representative;
f) An employee’s refusal or proposed refusal to join or withdraw from a labour union;
g) An employee’s race, colour, sex, religion, political opinion or affiliation, national
extraction, nationality or social origin, marital status, HIV status or disability;
h) An employee’s initiation or proposed initiation of a compliant or other legal
proceedings against the employer, except where the conduct in the opinion of the
labour office is wholly irresponsible and without foundation;
i) An employee’s temporary absence from work for any period up to three months on
reliable grounds including sickness and injury.
Industrial Action
Section 76 provides that the organization or intended organisatoion of a strike or other
industrial action shall not constitute a fair reason for dismissal or the imposition of a
disciplinary penalty where the strike or industrial action is lawful.
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Lecture Notes by Grace Flavia Lamuno
The section also provides that the participation or intended participation in a strike or other
industrial action shall not constitute a fair reason for dismissal or the imposition of a
disciplinary penalty where the strike or industrial action is lawful.
Remedies for unfair termination
Section 77 provides that where the labour officer finds that the employee’s complaint of
unfair termination is well founded, the labour officer shall give the employee an award of
compensation specified in section 78.
Compensatory order
Section 78 provides that an order for compensation to an employee who has been unfairly
terminated shall be a basic compensatory order for four weeks wages.
The section also provides that an order for compensation may include additional
compensation at the discretion of the labour officer.
Settlement of termination cases
Section 80 provides that notwithstanding any provision of this Act, an agreement between
an employer and employee stating that no complaint in respect of a termination shall lie to
the labour officer, an agreement between the two shall;
a) Be in writing
b) Be signed by the employer and employee
c) Contain a written statement by the labour officer to the effect that the terms of the
agreement are fair and reasonable in the circumstances and that the employee’s
entitlements under the law and contract have been paid
Severance Allowance
Section 87 provides that an employer shall pay an employee who has been in continuous
employment for more than six months’ severance and also under the following
circumstances;
a) The employee is unfairly dismissed by the employer
b) The employee dies in the service of the employee otherwise than by his or her own
serious or willful misconduct
c) The employee terminates the contract because of physical incapacity not caused by
his or her own serious or willful misconduct
d) The contract is terminated by reason of death or insolvency of the employer
e) The contract is terminated by the labour officer due to inability or refusal of the
employer to pay wages
f) Any other reasons prescribed by the minister.
Circumstances where no severance allowance is paid
Section 88 provides that no severance allowance is paid where an employee;
a) Is summarily dismissed
b) Is dismissed by the employer and unreasonably refuses to accept an offer of reemployment by the employer at the same place of work and at no less favorable terms
and wages he/she was employed at immediately before dismissal
c) Absconds the employment or absconds from the place of work without leave for
period of more than three days without explanation being given to the employer.
d) The contract which is terminated is a probationary contract
Calculation of severance allowance
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Lecture Notes by Grace Flavia Lamuno
Section 89 provides that the calculation of severance allowance shall be negotiable between
the employer and the workers of the labour union that represent them.
Payment of severance allowance
Section 91 provides that where severance allowance is payable, it shall be paid on cessation
of employment or on the grant of any leave of absence pending cessation of employment
whichever occurs earlier.
Where severance allowance is payable to a deceased employee, it shall be paid to the
surviving spouse within thirty days of the employer being informed of the employee’s death,
or where there is no spouse such other adult, dependent relative or guardian of a minor
dependent relative as the labour officer may decide.
Failure to pay severance allowance
Section 92 provides that is liable to pay severance and refuses to do is commits an offence
and shall pay a fine calculated at two times the amount of severance allowance payable.
Jurisdiction over claims and remedies
Section 93 provides that unless where the contrary is expressly provided, the only remedy
for anyone how is infringed by any of the rights under this Act shall be by way of compliant
to a labour officer who shall hear and settle the matter by mediation or conciliation.
A claim in tort arising out of the employment relationship shall be brought before a court
and the labour officer shall have no jurisdiction to hear such a claim.
Where within 90 days from the submission of a complaint the labour officer has not issued
a decision on the complaint or dismissed it the complainant may pursue the claim before
the industrial court.
A labour officer shall state the reasons for any decision taken on a complaint.
Appeals
Section 94 provides that a person who is dissatisfied with a decision of a labour officer on a
complaint may appeal to the Industrial Court.
The industrial court shall have power to confirm, modify or overturn any decision from
which an appeal is taken and the decision of the industrial court shall be final.
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Lecture Notes by Grace Flavia Lamuno