In Uganda, the minimum notice period required for employment termination is dictated by the Employment Act 1977. This Act prescribes a tiered notice period based on the employee's length of service.

Notice Period Based on Length of Service

The minimum notice periods mandated by law are as follows:

• For employees who have worked for more than 6 months but less than 1 year, a two weeks' notice is required.
• For those who have worked for more than 1 year but less than 5 years, a one month's notice is necessary.
• Employees who have worked for more than 5 years but less than 10 years require a two months' notice.
• For those who have worked for 10 years or more, a three months' notice is required.

There is no minimum notice period required for employees who have worked for less than six months. The notice period can be longer if stipulated within the individual employment contract, as long as it adheres to fair labor practices.

Notice by Employer or Employee

The minimum notice periods outlined above apply to both employers and employees initiating termination.

Providing Notice

While the Act doesn't explicitly require written notice, it's highly advisable to provide written documentation for clarity and to avoid potential disputes. The written notice should specify the termination date and the reason for termination, if applicable. Ugandan law mandates a minimum notice period for employment termination based on the employee's length of service. Both employers and employees are obligated to provide this notice, and it's recommended to do so in writing.

Severance pay in Uganda is primarily governed by the Employment Act of 2006.

Eligibility

Employees are eligible for severance pay after a minimum of 6 months of continuous service with the same employer. Severance pay applies in circumstances including unfair dismissal by the employer, the employer's insolvency or bankruptcy, death or physical incapacity of the employee (not due to their misconduct), a labor officer ordering termination due to the employer's inability or refusal to pay wages, and other circumstances specified by the Minister responsible for labor.

Calculation

The Employment Act doesn't provide a specific formula for severance pay calculation. However, courts and legal precedent offer guidance. Courts generally consider factors such as the length of service, the employee's age, salary, the likelihood of re-employment, and any misconduct contributing to termination when determining severance pay awards. While no set minimum exists, courts often use the principle of at least one month's gross salary for each year of service as a baseline.

Important Notes

Employment contracts can provide for severance pay above the customary amounts determined by courts. Severance pay is distinct from payment in lieu of notice and terminal benefits such as pension and gratuity.

Termination of an employment contract in Uganda can occur in several ways. It's crucial for employers to understand the procedures and legal guidelines prescribed by the Employment Act 2006 along with common law principles of fairness and due process.

Types of Termination

• Termination by Notice: This is the most common form of termination. Both employers and employees must provide adequate notice. The minimum notice period depends on the length of service as per Section 58 of the Employment Act.
• Payment in Lieu of Notice: Instead of giving notice, either party can opt to pay a sum equivalent to the salary the employee would have earned during the notice period.
• Termination for Cause (Summary Dismissal): Employers may terminate employment without notice for serious misconduct such as gross negligence or insubordination. The Employment Act (Section 68) outlines specific grounds. However, the employee must be given a hearing and the reason for termination explained in writing.
• Redundancy: Termination due to economic, technological, or structural reasons as outlined in Section 81 of the Employment Act. Specific procedures apply, including consultation with employees, notification to the Labor Commissioner, and priority considerations for re-hiring.

Procedural Requirements

Regardless of the termination type, employers must generally follow these steps:

1. Provide Reasons: The employer must state clear and valid reasons for termination in writing.
2. Opportunity for Hearing (Excluding Summary Dismissal): The employee has the right to be heard and defend themselves against the allegations.
3. Documentation: The entire termination process should be thoroughly documented for potential future disputes.

Additional Considerations

• Employment Contracts: Contracts may contain specific termination clauses, but they cannot contravene the provisions of the Employment Act.
• Unfair Dismissal: Employees may challenge terminations in the Industrial Court if they believe the dismissal was unfair or without a valid reason.