The meeting resolved that termination of employees should therefore, be taken as the last resort, after all the available softer options have been exhausted.
KAMPALA – Government, workers representatives and employers have agreed to work together to protect jobs and ensure minimal staff layoffs as the coronavirus pandemic batters the economy.
In a Tripartite Meeting of Government, Workers (represented by the National Organization of Trade Unions, NOTU and the Central Organization of Free Trade Unions, COFTU), and Employers;(represented by the Federation of Uganda Employers, FUE), it was agreed that whereas the pandemic has made it difficult for employers to maintain jobs and pay staff, employers are encouraged/advised to the extent possible, not to terminate employees.
“Employers and employees are encouraged to negotiate/renegotiate wages before considering lay-offs or terminations. This is because the employers will require these employees when normal operations resume,” a resolution from the meeting reads in part.
The meeting resolved that termination of employees should therefore, be taken as the last resort, after all the available softer options have been exhausted.
It was also agreed that employers who despite the associated costs and lengthy procedures opt for termination, should strictly adhere to the law (Sections 58, 65 and 81 of the Employment Act, 2006, as well as Regulation 44 (a) and (b) of the Employment Regulations, 2011).
Furthermore, employers should ensure that the process of termination or lay-off are done with a humane face. Workers should be counselled prior to termination or lay-off.
That employers should try as much as possible to take care of the basic needs (e.g. food)for the workers they lay-off as this will not only help them to stay connected to their workers but it is a re-assurance to the workers about the good will and intention of the employers towards them in the difficult circumstances.
See resolutions below
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In View of the foregoing, I convened a Tripartite Meeting of Government, Workers (represented by the National Organization of Trade Unions, NOTU and the Central Organization of Free Trade Unions, COFTU), and Employers;(represented by the Federation of Uganda Employers, FUE). The meeting discussed and agreed on a number of issues regarding the effects of COVID-19 on Employment including job security and the possible mitigation measures.
The Tripartite Meeting observed, noted and agreed that:
i) The COVID 19 Pandemic is affecting both the employees and employers in more or less equal measure;
ii) The effects of COVID-19 on labor are both negative and positive to some extent. In other words, there are some sectors like manufacturing that are gaining from the situation much as some are losing. The ability to exploit opportunities within the bad situation counts a lot;
iii) The Hotel Industry, Tourism, Transport and the Flower Exporters are among the most affected Employers; while others such as Factories producing soap, sanitizers, toilet tissues and face-masks and other personal protective equipment (PPE), are reportedly experiencing growth in their businesses;
iv) The magnitude of the negative effects of COVID-19 varies across and within sectors. Different employers and employees have been affected to different magnitudes;
v) Cash-flow deficiencies occasioned by the current lock-down have made it difficult for most Employers to meet employee costs including payment of wages. As a result, some employers have made decisions or are contemplating instituting employee-cost-reduction measures including pay-cut, employee lay-off and termination; and
vi) Most of the workers who have been terminated or laid-off are having difficulty in meeting their basic and essential needs including, food and health-care. The most affected in this category includes mainly casual workers in both the formal and informal sector who were being paid on daily basis.
Considering the fact that the COVID 19 Pandemic is a temporary occurrence, the situation calls for patience and mutual understanding between and among Workers and Employers. Accordingly, the Tripartite Meeting agreed on measures and guidance to the Workers/employees and Employers as follows:
i) Whereas, employment relations are regulated by law, mitigating the effects of COVID-19 on employment relationships is more than a legal matter given the circumstances. Therefore, employers and workers are encouraged to find win-win solutions through dialogue as far as is reasonably practicable;
ii) Where possible, Employees should be encouraged to work from home, not only as a means of reducing over-crowding at the workplace and thereby increasing the risks of infection with COVID19, but as a measure of cutting on overhead costs at the workplace;
iii) Employees should be encouraged to take pending annual leave as one of the cost-cutting measures as well as decongesting work-places;
iv) Employers and employees are encouraged to negotiate/renegotiate wages before considering lay-offs or terminations;
v) Employers are encouraged/advised to the extent possible, not to terminate employees. This is because the employers will require these employees when normal operations resume;
In addition, termination of employees will occasion more costs to employers in form of payment of terminal benefits for instance, payment in lieu of notice, compensation for leave days not taken, and severance packages, among others;
vi) Termination of employees should therefore, be taken as the last resort, after all the available softer options have been exhausted;
vii) Employers who despite the associated costs and lengthy procedures opt for termination, should strictlyadhere to the law (Sections 58, 65 and 81 of the Employment Act, 2006, as well as Regulation 44 (a) and (b) of the Employment Regulations, 2011);
viii) Employers should ensure that the process of termination or lay-off are done with a humane face. Workers should be counselled prior to termination or lay-off;
ix) Employers should try as much as possible to take care of the basic needs (e.g. food)for the workers they lay-off as this will not only help them to stay connected to their workers but it is a re-assurance to the workers about the good will and intention of the employers towards them in the difficult circumstances;
x) Sectors not affected adversely by the COVID-19 pandemic like manufacturing, food processing and others shouldn’t use the excuse of the pandemic to arbitrarily cut staff wages or lay off staff.
xi) The Ministry of Gender has asked the COVID 19 National Taskforce led by the Rt. Hon Prime ministerto devise means of targeting and prioritizing the most vulnerable categories of workers who have been laid off or terminated, to benefit from the food being distributed. The LCs shouldn’t discriminate against these casual workers by not regarding them as non-vulnerable since they always know them as working and therefore earning.
xii) Employees who have running loans with financial institutions are encouraged to take advantage of the directive issued by Bank of Uganda to the financial institutions to reschedule loan repayments;
Commercial Banks, on the other hand, are advised not to impose penalties on borrowers who would wish to retire their loans before the end of the loan term;
xiii) The Ministry of Gender, Labour and Social Development, will take keen interest in, and will continue addressing on a case-by-case basis, complaints raised by part-time workers and other workers who by the time of the COVID 19 lockdown, had no contracts and were sent home without payment of what was due to them as at the time of the lockdown. This includes most especially workers in the private and public education institutions;
xiv) In line with Section 19 of the Employment Act, 2006, all Employers should provide returns and statistics on the number of workers whose employment relationships have been affected or are likely to be affected during the COVID-19 Pandemic. This information will particularly be useful for policy advice and planning;
xv) After the Lockdown is fully lifted, the Ministry of Gender, Labour and Social Development working with its partners will undertake a Rapid Assessment on the effects of COVID-19 on labour, employment and productivity, and consequently develop a Labour Market Risk Management Plan in consultation with the social partners; and
xvi) The Tripartite Meeting also agreed to contact Parliament to expedite the process of considering the amendment of the NSSF Act as one of the instruments to address the social security needs of the contributors
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