On 15 November 2023, the Court of Appeal of Uganda reaffirmed the employer's right to terminate the employment relationship by providing notice or payment in lieu of notice.
It stated that where the notice period is observed, or compensation is paid in lieu thereof, employers are not obliged to give reasons for dismissal under Section 65(1)(a) of the Employment Act.
It is based on the assumption that termination of employment is distinct from dismissal for misconduct or poor performance, which requires procedures and reasons.
On November 2022, the Federation of Uganda Employers, in partnership with the ILO, launched a new Report that looked at the impact of Covid -19 on Ugandan workplaces.
The research study, based on a survey that covered a wide crosssection of enterprises in many sectors, aimed to understand better the effects of Covid and the plans of enterprises.
It shows that many enterprises have had to significantly alter their operations and production processes, human resource strategies, work modalities, and many other aspects of their enterprises, but also that Covid-19 created a range of new opportunities and challenges for the human resources side of a business.
In the recent case of Bank of Uganda v Joseph Kibuuka, the Ugandan Court of Appeal has re-affirmed employers’ right to terminate an employee without reason by either giving notice or payment in lieu of notice.
Later, the Industrial Court, in the case of Asiimwe Apollo v Law Development Centre,stated that employers must give reasons before an employment contract is terminated.
The different treatment depends on the nature of the termination. In a disciplinary dismissal a reason has to be given, while this is not necessary where the employer’s decision is related to a need for restructuring.