Before Declaring Redundancy — Required Steps Uganda
- Explore all reasonable alternatives — reduced hours, pay cuts, redeployment to other roles
- Consult with employees or their representatives before any final decision
- Notify the Labour Commissioner in writing before effecting any redundancy
- Agree fair selection criteria where some but not all in a category are affected
Important: Redundancy in Uganda is not a quick fix for poor performance or misconduct. Misusing redundancy to avoid disciplinary procedures is a recognised abuse that courts scrutinise closely.
Notice Periods for Redundancy Uganda
| Length of Service | Minimum Notice Period |
|---|---|
| Less than 6 months | 1 week |
| 6 months to 2 years | 2 weeks |
| 2 to 5 years | 1 month |
| 5 to 10 years | 2 months |
| Above 10 years | 3 months |
Severance Pay for Redundancy Uganda
- Statutory minimum: one month's pay for each completed year of service
- Severance pay is not subject to PAYE in Uganda — exempt payment up to prescribed limits
- Any amount agreed in the employment contract above statutory minimum must be honoured
Redundancy vs Unfair Dismissal Risk
If a court finds that a redundancy was not genuine — for example the employee was replaced shortly after — it will be treated as unfair dismissal. The employee may be awarded reinstatement or compensation of up to 36 months' salary at the Industrial Court.
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