Analysis of the Employment (Amendment) Act, 2025

The Employment (Amendment) Act, 2025 is the biggest change to Uganda's labour laws in almost 20 years. Here is what has changed in simple terms:

Domestic and casual workers now have full rights. House helps, drivers, gardeners and nannies are now covered by the law just like any other employee. Employers must give them written contracts, sick leave and severance pay. Casual workers cannot be kept on short contracts indefinitely to avoid giving them permanent rights. After six months of continuous casual work, an employee builds up the same rights as a permanent employee.

The workplace now includes everywhere. Homes, vehicles, field sites, oil fields and even remote work locations are now legally considered workplaces. Employers are responsible for worker welfare and conduct in all these settings.

Harassment is now a criminal offence. Every employer, regardless of how many staff they have, must have anti-harassment measures in place. Verbal abuse, humiliation and hostile work environments are prohibited. In serious cases, employers and managers can face criminal charges.

Sick leave has increased. Employees are now entitled to two months of full pay and four months of half pay during illness, up from just one month. A doctor's opinion is required before any termination on grounds of illness.

Severance pay now has a clear formula. Employees are entitled to one month's salary for every year worked. This removes previous uncertainty but increases costs for employers.

Dismissal and termination are now treated differently. The law clearly separates ending employment for misconduct from ending it for other reasons such as redundancy or illness. Employers must follow proper procedures before dismissing anyone, including giving the employee a chance to respond and at least five working days to prepare.

Probation must be managed carefully. If you keep paying an employee after their probation ends without formally confirming or extending it, they automatically become a permanent employee under the law.

Breastfeeding and childcare facilities are now required. All employers must provide time, space or facilities for breastfeeding and childcare for children up to 36 months old.

Recruitment agencies face tougher rules. Agencies sending Ugandan workers abroad must be licensed, keep proper records, and include repatriation clauses in contracts. Agency directors can face personal criminal liability for violations.

Hiring foreign workers requires more checks. Some job categories may be restricted for foreign workers. Employers must confirm whether a role requires an exemption certificate before hiring a migrant worker.

The bottom line is that employers need to review their contracts, update their HR policies, manage probation periods carefully, and plan for higher sick leave and severance costs. The law is now more structured and employee-friendly, and non-compliance carries real legal and financial risk.

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