Africa employer of record

Employer of record in Uganda

Countries

Uganda

Employer of record in Uganda

Uganda

Uganda

Uganda, situated in East Africa, is a country celebrated for its diverse natural beauty and rich cultural heritage. Home to the source of the Nile River, its picturesque landscapes encompass lush rainforests, savannas, and snow-capped mountains. Uganda’s vibrant culture is a mosaic of over 56 ethnic groups, with languages, music, and dance at the heart of its identity. The nation is experiencing steady economic growth, with tourism, agriculture, and natural resource industries driving development. Uganda’s remarkable biodiversity, including endangered mountain gorillas, makes it a must-visit destination for nature enthusiasts and adventurers alike.

Capital: Pretoria (Executive); Bloemfontein (Judicial); Cape Town (Legislative)

Population: 61,071,000 (2023 est.)

Language(s): Afrikaans, English, Xhosa, Zulu, Southern Sotho, Venda, Tswana, Northern Sotho, Tsonga, Swati, Ndebele.

Currency: Rand

Employer of record in Uganda

Employee Benefits

  • 1 Jan          New Year’s Day
  • 26 Jan        NRM Liberation Day
  • 16 Feb        Archbishop Janani Luwum Day
  • 8 Mar         International Women’s Day
  • 7 Apr         Good Friday
  • 9 Apr         Easter Sunday
  • 10 Apr       Easter Monday
  • 21 Apr       Eid al-Fitr
  • 1 May        Labour Day
  • 3 Jun          Martyrs’ Day
  • 9 Jun          National Heroes Day
  • 28 Jun        Eid al-Adha
  • 9 Oct          Independence Day
  • 25 Dec       Christmas Day
  • 26 Dec       Boxing Day

A worker who maintains a weekly work schedule of at least sixteen hours is eligible for 21 working days of paid annual leave. This entitlement accumulates at a rate of 7 days for every consecutive 4-month period of service, commencing after completing a full 12 months of continuous employment. The timing of this annual leave should be collaboratively determined by both the employer and the worker, ensuring a fair and agreeable arrangement for both parties.

Under Ugandan labor law, female employees are entitled to maternity leave due to pregnancy. This maternity leave spans a duration of 60 working days. Importantly, at least 4 weeks of this maternity leave must be allocated for the period following the birth of the child or in the unfortunate event of a miscarriage. This legal provision is designed to support the health and well-being of expectant mothers during this crucial period.

In Uganda, male employees are entitled to paternity leave under specific circumstances. After the birth of their child or in the unfortunate event of a miscarriage of their wife, a male employee is eligible for four fully paid working days of paternity leave per year. This provision recognizes the importance of supporting fathers during significant family events and fostering a healthy work-life balance.

The maximum length of a probation period is typically 6 months, but it may be extended up to 1 year if both the employer and the worker agree to the extension. This flexibility allows for a more thorough evaluation of the employee’s performance before confirming their permanent status within the organization.

As per the Employment Act 2006 in Uganda, a worker who is employed for at least sixteen hours a week is entitled to receive sick leave pay after completing one month of service with their employer. This provision is designed to provide support to workers who may face illness or health-related issues during their employment tenure

In Uganda, there is no statutory requirement for employers to pay a 13th or 14th month salary. However, employees are typically entitled to 21 days of holiday pay asper labor regulations. It’s worth noting that the payment of bonuses is not as common in Uganda as it might be in some other countries, and such additional payments would generally depend on individual employment contracts or company policies

  1. In Uganda, foreign nationals are required to obtain special passes or work permits to undertake employment. Special passes, which are temporary work permits, are valid for three months and can be extended for a maximum of five months. Work permits, also known as entry permits, are issued for up to three years and are renewable every three years. These permits are divided into seven classes, labeled from A to G.

    Class F permits are specifically for practicing professionals such as lawyers and accountants. Applicants for Class F permits must submit various documents, including qualifications and references, a copy of their passport’s bio-data page, a recent passport-size photograph, a clearance letter from Interpol or their home country, a registration certificate with the relevant professional body in Uganda, a cover letter from the organization, and other required documentation depending on nationality.

    Class G permits have two sub-classifications: G1 and G2. G1 permits are for missionaries, volunteers, and workers for non-governmental organizations (NGOs). Applicants for G1 permits need to provide certified copies of qualifications, an appointment letter from the organization, passport details, photographs, clearance from Interpol or their home country, an employment contract, and a recommendation from the National Bureau for NGOs.

    G2 permits are for expatriates. G2 permit applicants are required to submit documents such as an appointment letter from the organization, passport details, certified copies of qualifications, photographs, a cover letter from the organization, proof of payment (nonrefundable prepayment receipt and security bond), income tax clearance for the organization, and other relevant documentation.

    Foreign nationals who wish to change employers in Uganda must apply for new work permits under their new employers. This process ensures compliance with immigration and employment regulations in the country.

In accordance with the law, severance pay is a provision subject to negotiation between the employer and the worker or their labor union. To be eligible for severance pay, a worker must have completed at least 6 months of continuous service with the same employer. Severance pay is due in several circumstances, including unfair dismissal by the employer, the worker’s death at work not due to their misconduct, termination due to the worker’s physical incapacity not resulting from their misconduct, termination due to the death or insolvency of the employer, termination by a labor officer when the employer refuses to pay wages, and other cases as outlined by the Minister. The specific amount of severance pay is determined through negotiation between the parties involved.

In Uganda, there are several mandatory employment benefits and entitlements as stipulated by labor laws. These statutory benefits aim to protect the rights and well-being of employees. They include:

Probationary Period: The law defines the maximum length of a probationary period, typically not exceeding 6 months but potentially extendable to 1 year with the consent of the worker.

Annual Leave: Employees are entitled to a specific number of paid annual leave days, typically 21 working days, after completing a certain period of continuous service.

Public Holidays: Employees are entitled to paid time off on recognized public holidays.

Sick Leave: Workers are entitled to paid sick leave after completing one month of service with their employer.

Maternity Leave: Female employees are entitled to maternity leave for a duration of 60 working days, with specific provisions for post-birth or post-miscarriage periods.

Paternity Leave: Male employees can receive fully paid paternity leave for a specified number of working days under certain circumstances.

Overtime Pay: Overtime pay is mandated for employees who work beyond regular working hours.

Notice Period: The required notice period for termination of employment varies based on the length of the worker’s service, ranging from 2 weeks to 3 months.

Severance Pay: Severance pay is due in specific situations, such as unfair dismissal, death at work, or insolvency of the employer, after a minimum period of continuous service.

Social Security Benefits: Social security benefits, including pension and health insurance, are typically provided to employees in accordance with national social security schemes.

These statutory benefits serve as essential safeguards for workers and are intended to ensure fair treatment, job security, and a decent standard of living. Employers are obliged to adhere to these legal provisions, promoting a healthy and equitable work environment in Uganda.

In Uganda, labor laws stipulate that the standard working hours per week should not exceed forty-eight hours. Any hours worked beyond this limit are considered overtime. If employees work in excess of eight hours in a day or forty-eight hours in a week, and there is no written agreement to the contrary, they are entitled to overtime pay.

The rate of overtime pay is typically set at one and a half (1.5) times the normal hourly rate if the overtime is worked on normal working days. However, if overtime is worked on gazetted public holidays, the rate increases to two (2) times the normal hourly rate. This provision ensures that employees are compensated fairly for their additional hours of work, promoting a balance between work and leisure while also acknowledging the importance of public holidays.

Annual Taxable Income

Tax on Lower Amount UGX

Rate on Excess %

Exceeding UGX

Not Exceeding UGX

0

2,820,000

0

0

2,820,000

4,020,000

0

10

4,020,000

4,920,000

120,000

20

4,920,000

120,000,000

300,000

30

120,000,000

_

34,824,000

40

In Uganda, individuals who are employed are required to contribute 5% of their gross earnings to the National Social Security Fund (NSSF). This contribution is designed to provide social security benefits to employees, such as pensions and health insurance.

Additionally, individuals who are employers have an obligation to make contributions to the NSSF on behalf of their employees. Employers are required to contribute an amount equivalent to 10% of each employee’s gross pay to the NSSF. This employer contribution is separate from the employee’s 5% contribution and is intended to fund the social security benefits provided to employees.

These contributions are mandated by law to ensure that workers have access to social security benefits that can support them during retirement or in case of certain contingencies, such as disability or medical expenses.

In Uganda, Value Added Tax (VAT) is levied on taxable supplies made by taxable persons, the importation of goods (with exceptions for exempt imports), and imported services by any person. The standard VAT rate in Uganda is 18%.

Termination by the Employer: An employer can terminate a worker’s employment for justifiable reasons other than misconduct. Additionally, employment terminates upon the expiry of an employment contract, a fixed-term contract, or the completion of a specific task without renewal.

Resignation by the Worker: A worker can resign from their employment contract, either with or without notice, especially in cases of employer misconduct or before the expiry of the termination notice period. The required notice period varies based on the worker’s length of service:

2 weeks for service of more than 6 months but less than 1 year

1 month for service of more than 12 months but less than 5 years

2 months for service of more than 5 years but less than 10 years

3 months for service of 10 years or more.

Severance Pay: Severance pay is a provision in the law and is due when a worker has provided continuous service to a particular employer for at least 6 months. It is applicable in various circumstances, including:

Unfair dismissal by the employer.

Death of the worker at work not attributable to their misconduct.

Termination by the worker due to physical incapacity not attributable to their own misconduct.

Termination due to the death or insolvency of the employer.

Termination by a labor officer following the inability or refusal of the employer to pay wages.

Other cases as provided by the Minister.

The specific amount of severance pay is negotiable between the employer and the worker or the labor union that represents them. This provision ensures that compensation is fair and reasonable, taking into account individual circumstances and negotiations between the parties involved.

In Uganda, the notice period for terminating employment depends on the length of the worker’s service with the employer. Here is a breakdown of the notice periods based on the worker’s length of service:

2 weeks’ notice is required for service of more than 6 months but less than 1 year.

1 month’s notice is required for service of more than 12 months but less than 5 years.

2 months’ notice is required for service of more than 5 years but less than 10 years.

3 months’ notice is required for service of 10 years or more.

These notice periods are intended to provide both the employer and the employee with a reasonable amount of time to prepare for the termination of the employment relationship. It also helps ensure that the termination process is conducted fairly and in compliance with labor laws.