Uganda's Employment (Amendment) Act 2026: What employers need to know

At a glance

• Uganda's Employment (Amendment) Act 2026 (Act) came into force on 5 June 2026 and represents the first major reform of the country's employment legislation since 2006.
• The Act extends workplace protections by requiring all employers to prevent and address sexual harassment and introduces criminal liability for workplace harassment, intimidation and abuse.
• New rules limit casual employment to six continuous months, expand paid sick leave entitlements and require employers to accommodate breastfeeding and childcare arrangements.
• The Act strengthens employee protections in termination and dismissal processes, including prescribed dismissal grounds, longer notice requirements and expanded severance pay rights.
• Employers should review employment contracts, HR policies and disciplinary procedures to ensure compliance with the new requirements and increased penalties for non-compliance.

On 29 April 2026, Uganda's President assented to the Employment (Amendment) Act 2026 which commenced on 5 June 2026. This Act is the first major overhaul of the Employment Act, Cap 226, since 2006. It extends the protections in Article 40 of the 1995 Constitution of the Republic of Uganda to every category of worker and brings in obligations that employers should be aware of and plan for.

Broader workplace protections

All employers, regardless of the workplace size, must now have measures in place to prevent and address sexual harassment. Previously, this applied only to employers with more than 25 staff. A new section 6A also makes it a crime for an employer or its agents to harass, intimidate or abuse employees. Degrading public tirades, threats, insulting comments and withholding necessities an employee is entitled to by contract are all covered.

Casual work, sick pay and breastfeeding

As it stands now, casual employment is limited to six continuous months, after which the worker is deemed to be employed under a contract of service. Laying the worker off and rehiring them does not reset the clock and this employee’s service shall be considered continuous. The Act also introduces a framework for piecework arrangements.

Employees incapacitated by sickness or injury are now entitled to full pay for two months, followed by half pay for up to four additional months. Termination on grounds of medical incapacity can only arise after exhaustion of the six months and requires a medical practitioner’s opinion.

Employers must also provide appropriate space and time for breastfeeding and childcare for children aged three. Whereas this is yet to be come operational pending the regulations of the minister, every employer must start to provision for it and make accommodations within internal policies and workplans.

Tighter rules on termination and dismissal

The Act introduces specific statutory grounds for dismissal, including prolonged abscondment, forged documents or qualifications, conduct adversely affecting the employer’s business, and grounds expressly provided in the employment contract.

Dismissal on any other ground is unfair. Dismissal without meeting legal or contractual obligations, including giving no reasons, is wrongful. Employees must get at least five working days to prepare for a disciplinary hearing.

Other changes include:

• Payment in lieu of notice on termination of probation has been increased from seven days to one month.
• An employee who continues working and being paid after probation without an extension is deemed confirmed.
• Collective terminations of ten or more employees require 30 days’ notice to the Commissioner for Labour.
• The grounds under which severance is payable have been broadened to include redundancy and termination on grounds of physical incapacity. Relatedly, the severance payment calculation has now been codified to one month’s salary for each year worked, unlike before when it was at the employers’ discretion.

Enforcement and penalties

Labour officers can no longer arbitrate employment disputes, and their roles are now limited to conciliation, mediation and adjudication, and their orders are enforced through the Industrial Court. The basic award for unfair dismissal has been doubled from four weeks' wages to eight weeks’ wages. With the new amendment, the penalties / fines for general breaches go up to UGX10,000,000. However, repeat offences attract a fine of up to UGX14,000,000 or imprisonment of up to seven years, or both.

Recruitment agencies and migrant workers

The amendment also introduces Part IVA which regulates labour externalisation. Recruitment agencies must therefore be licensed, incorporated companies, and contracts for work abroad must include repatriation terms.

What employers should do now

Employers should review their employment contracts, disciplinary procedures and HR policies against the new requirements, with particular attention to dismissal grounds, sexual harassment, sick leave, breastfeeding and childcare, casual employment and collective terminations.