Accept a smaller salary or go home, is this acceptable?
June 18, 2020 PLA Uganda

Accept a smaller salary or go home, is this acceptable?

The article addresses employment termination and salary reduction practices during the COVID-19 pandemic in Uganda, examining legal frameworks and workers' rights.

The COVID-19 pandemic brought unprecedented challenges to Uganda's labour market. The African Union estimated nearly 20 million jobs threatened across Africa, with Uganda projecting 3.8 million temporary job losses and 625,957 permanent positions at risk if conditions persisted.

Legal Framework

Uganda's Employment Act 2006 provides clear guidelines governing employment termination. Key provisions include:

  • Proper notice requirements based on length of service
  • Requirements for justifiable termination reasons
  • Procedures for collective dismissals affecting 10+ employees
  • Salary renegotiation processes requiring employee consent
  • Redundancy procedures and fair selection criteria
  • Force majeure clause invocation

Key Legal Principles

Employers must follow due process, obtain written employee consent for salary modifications, provide adequate notice periods, and demonstrate genuine business necessity for terminations.

Recommendations

The article advocates for alternative cost-saving measures before resorting to workforce reduction, including hiring freezes, leave provisions, and shift arrangements. Workers should never be forced to accept salary reductions without proper legal process and their written consent.

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