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- Overview
Employment Termination in Uganda
An employer can terminate the employment by issuing notice of termination or making a payment in lieu of the notice. An employer must provide valid reasons for termination. Before dismissing an employee, the employer must explain the reasons for the proposed dismissal, allow the employee to have a person of their choice present, and give the employee 5 working days to respond before making a decision. If an employee is unfairly dismissed, a court may award up to 8 weeks' wages as compensation, depending on the circumstances.
The minimum notice periods for both the employer and the employee under the law are:
- No notice period for service of less than 6 months, unless there’s a probationary period. During probation, either party may terminate employment by giving at least 14 days' written notice. Instead of notice, the employer may make a payment in lieu of notice equal to one month's wages.
- 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.
Employees are entitled to one month's salary for each completed year of service when severance pay is due. Severance is payable in cases such as redundancy, incapacity or non-payment of wages.
Probation is limited to 6 months and may be extended once for up to 6 additional months with the employee's agreement. If an employee continues to be paid after the probation period ends without being terminated or having their probation extended, they are deemed confirmed in employment.