What employers need to know before responding to the request to donate Shs 10,000 from the employees' May and June Salaries
In May 2020, the Chairman of the Fundraising Subcommittee for National Response to Covid-19 appealed for approximately Shs 10,000 donations from formally employed workers for two months to support pandemic response efforts.
Legal Position on Wage Payment
The Employment Act 2006 prohibits receiving employee wages without written permission, except as specified by law.
Lawful Deductions
Employers may only deduct wages when:
- The deduction is required or authorized by law
- There is a provision in the worker's contract
- The worker has given their prior written consent to the deduction
Permitted Deductions: Tax, NSSF contributions, reasonable accommodation charges with agreement, and union dues.
Unauthorized Deductions: Employers cannot deduct amounts for securing or retaining employment.
Consequences
An employer who acts in contravention of the provisions is liable to repay any remuneration wrongfully withheld or wrongfully deducted from the employee. Employees may request repayment from a labour officer within six years.
Recommendation: Direct appeals to workers—rather than employer deductions—represent the appropriate approach. Any move to deduct a single penny from an employee's net-pay/salaries or wages without consent will lead to legal action for recovery or repayment.
