BIG READ: Government warns against layoffs 

Mar 24, 2020

The minister said the effects are already being felt in the tourism, transport and industry sectors. He advised companies that may feel the pinch of the economic slowdown to restrain from going for slashing workers as the first option.

KAMPALA - The government has warned against the termination of workers amidst the social-economic effects of the COVID19 pandemic.

In a statement by the state minister for Gender Labor and Social Development, Mwesigwa Rukutana, the Government acknowledged the pressure on employers on the maintenance of the workforce and labour productivity.

"But I would advise that the COVID19 pandemic should not disrupt the employment agreement, leave and overall employer-employee relationship," Rukutana said on recently.

The minister said the effects are already being felt in the tourism, transport and industry sectors. He advised companies that may feel the pinch of the economic slowdown to restrain from going for slashing workers as the first option.

But if they feel compelled to do it, to follow the set procedures in the Employment Act 2006.

The chairperson general of the National Organisation of Trade Union, Wilson Usher Owere, welcomed these guidelines. In the guidelines issued by the minister of state, the Government divided employees into different categories according to their terms of employment.

Rukutana advised that the employers need to consider the implication of laying off to the legal requirement to compensate.

For example, Rukutana advised employers to retain workers who are on monthly pay because they are entitled to severance pay, repatriation, payment in lieu of notice, payment in lieu of leave, compulsory compensation and any other damages.

There is also an alternative of encouraging workers to take pending and future annual leave now or leave without pay. "Termination at this stage may become costly in terms of payment of terminal benefits," he said.

In the case of unionised workers, the ministers advised that if layoffs become the best option, caution needs to be taken. "Parties should explore the provisions of Collective Bargaining Agreement while observing the requirements under section 40 (3) (a) and section 84 of the Employment Act 2006," he said.

The Employment Act 2006 section 40 (3) (a) allows employers not to provide work where natural calamities have caused interruptions to their business activities. However, for those employed under casual terms, the minister advised a review where some can be advised to stay home.

But in the event that layoffs cannot be avoided, Rukutana reminded employers of their responsibility to give all the affected employees notice in accordance with provisions under section 58 and 81 of the Employment Act 2006.

"The processes should have a humane face and clearly written and signed agreement between parties and timeframe. "Workers should be prepared or counseled prior to termination or during the period of notice, including those that have been affected by the pandemic," he said.

The minister also advised that any temporary layoff should not break the continuous service of an employee as required by section 84 of the Employment Act 2006.

Section 84 protects the employees' right to resume work after annual leave, study or education, maternity leave or sick leave, according to the terms of employment agreement. It also mentions after suspension, with or without pay, after having been temporarily laid off, after a strike, lockout or other industrial action and after a jail term for an offence unrelated to his or her work; "There should be commitment that workers would be reengaged when the situation normalises," he said.

"Terminal benefits that accrue should be paid when an employer decides to terminate the employment relationship unless otherwise agreed."  The minister also said employers should sensitise workers on preventive measures for COVID19, provide personnel protective equipment and treatment of affected workers in line with part III of the occupational safety and health act 2006.

Peace Regis Mutuuzo, the minister of state for gender and culture, also encouraged Ugandan communities living around the border to be on high alert, report strangers and hand them over to authorities so that they are managed in a manner that will support all efforts that have been employed to prevent the coronavirus from spreading.

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