Subscribe to our Newsletter to receive the latest updates on our content. By tapping the “Subscribe” button you will be redirected to subscription page. Subscription is free.
The President of Uganda assented to the Employment (Amendment) Act, 2025 (the “Employment (Amendment) Act”) on 29th April 2026. This alert summarizes the key changes introduced by this legislation, provides commentary on the policy context that informed the amendments, and outlines practical steps employers should take to ensure compliance.
18 May 26
Other Insights:
The Employment Act, Cap. 226 (the “Employment Act“) was enacted in 2006 and revised in December 2023. It forms the cornerstone of Uganda’s employment law, governing the formation, content and termination of contracts of employment, minimum working conditions, leave entitlements, the protection of employees from unfair and unlawful dismissal, remedies for dismissed employees, and the regulation of specific categories of workers.
Why Was It Amended?
While the Employment Act represents a notable improvement over the previous legislation it replaced [the Employment Act, Cap 219], it left several gaps that became apparent in practice over the following two decades.
The regulatory framework for casual and domestic workers remained inadequate, leaving this vulnerable workforce without essential protections. The interchangeable use of the terms “termination” and “dismissal” introduced significant complications in the enforcement of employee rights and the clarity of obligations for employers. This ambiguity in definitions and applications created uncertainty in labour jurisprudence. Sick leave provisions fell short of international standards, particularly for those facing long-term illness. The rise in labour export, coupled with unregulated private recruitment agencies, posed significant risks for Ugandan workers seeking employment abroad. Additionally, workplace harassment beyond sexual harassment was not explicitly addressed, and severance pay calculations relied heavily on contracts and judicial discretion, leading to unpredictable outcomes.
The amendment also reflects Uganda’s obligations under international labour standards, including conventions of the International Labour Organization, as well as the need to harmonize domestic law with the East African Community labour framework.
Click Here to read and download the full article
Should you require more information about this article, please do not hesitate to contact Alex Ntale or Kenneth Kiapi.