Hiring Talent And Managing Payroll In Uganda

Agreements

• In Uganda, Contracts can be made either orally or in written form.
• However, the employer must provide written contact before starting employment for it to be legally binding.
• Contracts are binding upon both parties. Upon breach, they can be enforced through judicial bodies or Labour Office.
• The terms and conditions of the agreement should comply with the Employment Act
• In case of inconsistency with Ugandan labor law, the contract becomes null and void
• The contract should specify employment duration, hours, and other terms and conditions.
• There is no language specification in contract drafting. However, the most preferred language is English for documentation.
• In Uganda, contracts are fixed-term, permanent, probationary, casual, and seasonal.

Onboarding Process

• Unlike other countries, Uganda does not have specific laws regarding onboarding.
• However, onboarding is advisable to make employees comfortable with the work environment.
• During onboarding, employees may receive the necessary training required for the job.
• Also, employees may be informed about workplace health and safety measures.
• Certain companies in Uganda prefer Nondisclosure agreements and security and confidentiality agreements while onboarding new employees.
• With legal assistance from EOR services, onboarding employees in Uganda can be more manageable.

Minimum Wage

Payroll Cycle

Annual Bonus

Health Benefits

• Occupational Health and Safety Act 2006 regulates health benefits and safety in Uganda.
• A full-time employee of Uganda enjoys medical care and sickness benefits. However, health benefits vary depending on the employer and the type of work.
• In Uganda, the Work compensation Act 2006 provisions compensation for industrial injuries
• Similarly, Industrial death is compensated with 60 months' salary in Uganda.
• For accidental disability, compensation depends on the degree of severity.

Working Hours and Overtime

• Work hours:In Uganda, the standard working hours are 8 hours per day, making 40 hours a week. The workweek is from Monday to Friday.
• Break:According to Section 53(6) of the Employment Act, employees working more than 8 hours, enjoy a 30-minute break.
• Overtime:In Uganda, Overtime payment is mandatory. An employee can work overtime for a maximum of 56 hours per week. Overtime work is compensated at 150% of the hourly rate. However, overtime work during gazetted holidays is compensated at 200% of the hourly rate.

Social Security

Taxes for Employees

Termination

• In Uganda, termination is guided by the terms and conditions of the contract.
• A contract can be terminated voluntarily by the employee and upon mutual consent. It can also get terminated due to the expiry of the contract.
• There is no provision for will-termination by the employer in Uganda.
• The notice period of termination depends on the length of the contract.
• 6-12 months = 2 weeks
• 12 months- 5 years = 1 month
• 5-10 years = 2 months
• Above 10 years = 3 months

Severance Pay

• The contractual agreement in Uganda determines the severance pay.
• However, severance pay is given to the employee who has continuously worked for at least 6 months.

Employees or Contractors

• In Uganda, people can be hired as employees or contractors.
• Employees and contractors enjoy different facilities and have separate legal provisions.
• Misclassifying employees and contractors can lead to legal implications and penalties.
• In Uganda, the misclassification of employees and contractors is investigated by Uganda Revenue Authority to ensure compliance with tax law.

Final Words