Legal Regulations for NGO Employing A Local or Foreigner in Uganda-By Ojijo Legal Ecosystem Uganda’s Employment Act, 2006 imposes certain obligation on employers, ranging from tax obligations, insurance obligations and obligations arising out of specific labour laws. The Employment Act also details regulation regarding employment of children, discrimination, disciplinary proceedings, contract termination, working hours, severance payment and leave. The Labour Unions Act, 2006, is intended to regulate the establishment, registration and management of labour unions in Uganda. It implements the constitutional right of employees to organise themselves in a labour union. The Act prohibits an employer from interference with the employee’s right of association in such a trade union. The National Social Security Fund Act, (Cap 222) imposes an obligation on employers to pay a standard monthly contribution of 15% (10% being the employer’s contribution and 5% being the employee’s contribution) of the total wages of an employee to NSSF. The pensions sector was liberalised in 2011 with the passing of the Uganda Retirements Benefits Regulatory Authority Act, 2011. This Act was enacted to remove the monopoly of NSSF as a national provident fund and allow for licensed retirement benefits schemes to operate and compete for mandatory contributions in an open market. A person who is not a citizen Uganda intending to work in Uganda, is required under the Uganda Citizenship and Immigration Control Act, (Cap 66) to obtain a work entry permit, a certificate of permanent residence or special pass. A special pass is issued while the entry permit is being processed. The work permit once issued is renewed every year, with amounts varying depending on the nature of work. Two Types of Laws Which Govern Employment Collective Labour law-relates to the tripartite relationship between employee, employer and labour union. You need to allow employees to form unions, as provided for under the constitution. (Constitution of Uganda especially Article 29 (1) (a)) Individual labour law-concerns individual employees’ rights through the contract of employment, statutory provisions, common law etc…unlike in the past when trade unions were the custodians of workplace welfare, there has been a steady shift to give individuals more legal rights that they can enforce directly through courts. E.g. right to fair treatment, hours of labour and holiday. These are of two further types, contract of service, and contract for service. Contract of service, is the same as consultancies, whereas contract for service is the normal employment, with benefits such as NSSF payment, deduction of PAYE, and other issues. Engaging Under Contact For Service, or Contract for Employment Here, the regulations are to make sure you are clear on deduction of percentage of payment, for withholding tax, to be paid to the revenue service, unless, of course, they prove that they are registered for URA, with a TIN number. Under this arrangement, you are not vicariously responsible for the contractors, and you do not pay them for workers compensation in case of injuries at work. You also cannot penalize them, or impose any punitive measures. Engaging Under Contract Of Employment, Or Contact Of Service. This is the situation where you employ a worker, either a foreigner, or local, to work for you, for a given time period, with clear terms of reference. There are issues to consider, including: Employees are entitled to receive written contracts of employment within 12 weeks after the date of the commencement of the employment. Written Employment Particulars Employment contract is any contract, whether oral or in writing, whether expressed or implied, where a person agrees to work for an employer in return for remuneration. It includes a contract of apprenticeship as well. Ugandan Labor Law requires that contract of employment should be in writing and written statement of particulars should be provided to a worker within twelve weeks of the commencement of employment. Employment contract must include the following: full name and addresses of the contracting parties; date of employment commencement; job title; workplace; wages including payment intervals and other deductions; rate of overtime pay; employee’s normal hours of work and the shifts or days of week on which such work is to be performed; the number of days annual leave and wages during the period; terms relating to incapacity for work due to sickness or injury; length of notice; and sick pay. Employer is required to provide above information in language that a worker can easily understand. In case of any amendment in the employment contract, the employer must issue a written notice to the worker to inform him/her about the amendment. Employer may also retain a copy of written particulars and the amendments in them and provide it to the labour officer on demand. (§25 & 59 of the Employment Act 2006) Fixed Term Contracts Ugandan Labor Law does not prohibit hiring fixed term contract workers for tasks of permanent nature. There is no regulation of fixed term contracts (their maximum duration or renewals) in the Employment Act. The Employment regulations of 2011 also do not regulate the use of fixed term contracts. They do however contain provisions on specific categories of temporary employees, namely casual employee, piece work employees and task work employees. The casual employees may be employed for a maximum of 4 months. If these workers are engaged continuously for 4 months, a casual employee ceases to be a casual employee and all rights and benefits enjoyed by other employees shall apply to him/her (Reg. 39). The piece work employee may be engaged for a maximum period of 3 months unless the person has a contract (Reg. 40)( §39, 40, 41 of the Employment Regulations 2011) Leave The Employment Act provides annual leave for all workers on completion of at least six months of service. A worker, working weekly for sixteen or more hours, is entitled to 21 working days paid annual leave at the rate of 7 days for each period of continuous 4 months of service on completion of 12 months of continuous service. The time to take annual leave has to be agreed between the parties. A worker is entitled to paid holidays proportionate to the length of service for which he/she has not received such a holiday or compensation for any of the unused annual leave in the event of employment termination.( §54 of the Employment Act 2006) Workers are entitled to paid Festival (public and religious) holidays. Festival holidays are announced by Ugandan Government at the start of calendar year (usually 13 in number). The public holidays are regulated under the Public Holidays Act, 1965. These are New Year’s Day (January 01), NRM Day (January 26), Women’s Day (March 08), Good Friday (April 18), Easter Monday (April 21), Labor Day (May 01), Memorial Day (May 26), Martyrs’ Day (June 03), National Heroes Day (June 09), Eid al-Fitr (End of Ramadan), Eid al-Adhuha (Feast of Sacrifice), Christmas Day (December 25) and Boxing Day (December 26). In addition to these holidays, the President may declare any other day to be a public holiday, and may limit the observation of any such public holiday to any area or place in Uganda. §54 of the Employment Act 2006, §1-3 of the Public Holidays Act 1965) Workers are entitled to 24 consecutive hours of rest per week. The weekly rest may be taken on customary rest day (Sunday) or as agreed between the two parties. Workers holding managerial positions may be excluded from weekly rest day by regulations issued by the Minister.( §51 of the Employment Act 2006 Female employees are entitled to 60 working days (eight and a half weeks) of fully paid maternity leave. The compulsory leave is four weeks after child birth or miscarriage. The worker must give a written notice of at least 7 day (or even shorter period under certain circumstances) prior to proceeding on maternity leave on a specific date and to return to work thereafter. Worker may also have to provide a certificate of her medical condition from a qualified medical practitioner or midwife, if required by the employer. Maternity leave may be extended in case of sickness arising out of pregnancy or confinement, affecting either the mother or the baby, and making the mother's return to work inadvisable, the right to return is available to the worker within eight weeks after the date of childbirth or miscarriage (thus adding 4 more weeks of maternity leave). The maternity leave is granted with full pay and the pay during leave period is financed by the employer. (§56 of the Employment Act 2006; § 56 of the Employment Act 2006) A male employee, after birth of child or miscarriage of a wife, is entitled to fully paid 4 working days of paternity leave in a year. (§ 57 of the Employment Act 2006) Foreign Employees/Work Permit Process If employing an expatriate, one must procure a work permit. Vacancies are to be notified to the district labour officer whenever they fall due (this is not being enforced). Foreign employees must have a valid visa, work permit, and employment card issued by the Ministry of Labor. Employers must take care to renew the work permits annually. Under the Uganda Citizenship and Immigration Act, there are 7 classes of work permit issued by the Immigration & Citizenship Board, Classes A, B, C, D, E, F, and G. These classes cover applicants for the whole spectrum of activities, ranging from Agriculture, Mining, Business and Trade, Manufacturers, Professionals, and Employees. An applicant for a work permit will make an application in one of these classes depending on the nature of activity they will undertake in Uganda. Where the Applicant is an Employee they will make an application under Class G. Upon entry into Uganda the intending applicant (expatriate employee) should make an application for a special pass, which allows the employee to work on a short term basis for a maximum period of 5 Months which can be extended if there is an application for a work permit pending. Simultaneously with the application for a special pass an application should be made for a work permit. The requirements for a work permit include, completion of application forms for both Special pass and Work permit; official letter from The Employer addressed to the Immigration and Citizenship Board requesting for a work permit; the expatriate workers CV, passport size photographs, and copy of their passport; letter from the Police Authority of the Expatriate Employees Country confirming that applicant has no Criminal record. There are official fees payable for a work permit and refundable security bond payable when the expatriate employee leaves Uganda permanently. Volunteers & Interns Many organizations recruit and depend on volunteers, interns, and other short-term staff at little to no compensation. Though the organization might not treat them the same as regular employees, the Labor Law makes no distinction. The Law looks to three main factors to determine if someone is an employee: i) work is performed, ii) under the direction and supervision of an employer, iii) in exchange for remuneration. The first two are easily satisfied in most cases. If the volunteer or intern receives even a modest (by foreign standards) stipend, they most likely would be deemed an employee. This would entitle them to all the same benefits and protections as permanent staff. They also need permits, as per the regulations, if they are foreigners. Work Hours & Overtime Normal working hours are eight hours a day, six days a week, totaling 48 per week. Workers may be required to work overtime, provided that total working hours, inclusive of overtime, must not exceed 10 hours per day or fifty six hours per week except when persons are employed in shifts. It is permissible to employ shift workers in excess of ten hours in any one day or 48 hours in any one week (without paying overtime), where the average number of hours over a period of three weeks may not exceed 10 hours per day and 56 hours per week. For any additional work, employees are owed overtime at 150% of base salary, or 200% if done at night or during a usual day off. Organizations should have a system for recording the time employees worked. ( §53 of the Employment Act 2006) Salary Payments, Deductions and Benefits There is a law on minimum pay, but due to the nature of Uganda’s economy, and high unemployment, the law is not strictly enforced. Hence, any pay above UGX. 500,000 is considered favorable. But there is need to pay equally, or at least, equitably. However, there is no law stating that a worker must be paid a given amount in comparison to another worker, whether foreign or local. Further, there is no particular provision on nature of currency of payment. Of the payments, the law obligates the employer to deduct Pay As You Earn, PAYE, that is, income tax, depending on salary, as well as NSSF payment. It is also good practice to deduct health insurance payments, as well. Other benefits to be considered are transport, communication, and meals. Disciplinary Procedures Without doubt, there will be infractions. Hence, it is important to have a manual, accessible to employees on signing of contract of employment, indicating the procedure of disciplinary hearings. Probationary Terms You are allowed to employ someone for a trial/temporary/probationary period of maximum length of 6 months. This may however be extended for up to another 6 months with the agreement of the employee. An employer is not to employ an employee under a probationary contract on more than one occasion. A contract may be terminated during probation by either party giving the other not less than 14 days notice or by the employer paying the employee the equivalent of 7 days wages in lieu of notice. This is shorter than the period required for a confirmed contract. No hearing is necessary when terminating a probation contract. No complaint for unfair dismissal or termination can be lodged by an employee who is dismissed while on probation. (§ 67 of the Employment Act 2006) Termination   The process and dispute resolution options that are available if the firing is summary dismissal, or dismissal as a result of restructuring. Under summary dismissal, an employer is required before reaching a decision to dismiss an employee on grounds of misconduct (or poor performance) to explain to the employee in a language the employee may be reasonably expected to understand the reason for which the employer is considering dismissal. The employee is entitled to have a person of his or her choice present during this explanation. The employer is then required to give the employee and his or her representative time to respond to the reasons given and must hear and consider the representations, which the employee and his representative make on the grounds of misconduct. Claims of infringements under the Act are to be made by complaint to a Labour Officer. The High Court of Uganda however has inherent original jurisdiction and thus can also resolve labour disputes filed at the court. On the other hand, an employer who contemplates termination of not less than 10 employees over a period of not more than 3 months for reasons of an economic, structural, technological or similar nature is required to provide the representatives of the labour union, if any, that represent the employees in the organization with relevant information relating to the terminations, within 4 weeks before the first of the terminations. The employer is also required to notify the Labour Commissioner in writing of the reasons for the terminations, the number and categories of workers likely to be affected and the period over which the terminations are intended to be carried out. The terms of the contract should be adhered to in carrying out the actual termination e.g termination notice, terminal benefits, etc. There should be severance allowance under the employment act is due where; The employee is unfairly dismissed by the employer The employee dies in the service of employment, otherwise than by an act occasioned by his or her own serious and willful misconduct The employee terminated the contract because of physical incapacity not occasioned by his or her serious and willful misconduct The contract is terminated by reason of the death or insolvency of the employer The contract is terminated by a labour officer following inability or refusal of the employer to pay the employee’s wages Such other circumstances as the Minister may provide by regulations. Other Issues A child under the age of 14 years shall not be employed in any business, undertaking or workplace except for light work carried out under supervision of an adult aged over 18 years, and which does not affect the child’s education Employers are required to repatriate employees that are recruited 100km away from their home on the expiry of the period of service stipulated in the contract; on the termination of the contract by reason of the employee’s sickness or accident; on the termination of the contract by agreement between the parties, unless the contract contains a written provision to the contrary; and on the termination of the contract by order of the labour officer, the Industrial Court or any other court. …………………………………………………………….. About Ojijo Ojijo Pascal, a lawyer, author of 49 books, public speaker, entrepreneur, investor, performance poet, armature pianist, speaker of 19 languages, believer in open religion, and Inua Kijana Fellow, is the Founder & Lead at GoBigHub, a for profit social enterprise with a 10 year target of being in 1,000 African cities and contributing to 1% of Africa’s GDP through connecting entrepreneurs to investors and mentors locally. He is passionate about the role of enterprise in fighting Africa’s challenges of poverty, unemployment, and low productivity by promoting trade, and not aid, and building better and sustainable livelihoods across Africa. Ojijo is a consultant in communication skills (public speaking, strategic planning, and writing); expert lawyer (ICT law, financial services law, law firm management, and legal rhetoric); a public speaker and coach on financial literacy and personal branding; and a consultant in collective investment schemes (private equity funds, investment clubs, provident funds, and cooperatives). He is the creator of chapchap financial literacy board game, gosacco.com investment clubs and saccos software, commonsenseapp.net mobile app, volunteeringfriends.org, allpublicspeakers.com, naniwapi.com, achibela.com, ugstick.com, gobighub.com, luopedia.com, and lawpronto.com. Read Ojijo's Complete Profile Here. M: +256776100059. E: ojijo@gobighub.com