EMPLOYMENT CONTRACT

Employee. Means any person who has entered into a contract of service including without
limitation to any person who is employed by the government of Uganda.

Employer. Means any person or group of persons including a company or corporation or a

governing body of an incorporated association or organization or institution.

Contract. is an agreement of two or more people and this agreement can be orally or in written
form. The agreement between the two is enforceable in law.

If an agreement to do with B, of the selling tomatoes. Ford at the end of the day B, delivered
tomatoes to A.A is not in a position to denie the tomatoes. As he or she is binded by that contact.

Employment. the act of employing or the state of being employed.

What is contract of employment.

This is defined under section to of employment Act,Act 6 of 2006:

Contract of employment. Harrison ltd Vs Macdonald Evans(1952)I.T 101

In general a contract of employment is one whereby one person called the employer agrees to
serve another called the employer by rendering or giving services to him or her and to obey his
reasonable orders within the scope of the duty in return for money remuneration.

Its usually created by formal agreement between the employee and the employer and may last for
a specific agreed period of time.

During its continuance the employee works at regular hours during which he is required to
devote his full time to the employees business.

The regular contract of employment under common law is known as contract of service because
its based on social, economic phenomenon of all modern societies.

Lord denning. Which defined contact of service to mean any contract whether oral or written
whether expressed or implied to employ or to serve as an employee for any period of time.
Eg: a lecture for cavanalish

An engineer in a company

Under contract of employment there is difference between contract of service and contract for
service, case of ready mix Vs minister of pension(1968) Aller 423:

This is the case which distinguish a contract of service to the contract of service

“The difference is about control”

Contract of service is where the master does not order what ought to be done.eg lecturer

Contract for service is where the master does order what to be done: eg people working under the
contractor

Services of s contract of employment.

 Constitution of repayable of Uganda 1995

 The contract Act cap73.
 Employment Act 6 of 2006
 employment regulation S.I 14/77
 the Uganda citizenship and immigration control Act cap 66
 workers compensation regulation S1 14/225-1
 The labour disputes (arbitration and settlement)Act Act 8 of 2006
 The labour unions Act 7 of 2006
 The occupational safety and health Act 9 of 2009

Employers duties:

employment Act section 51 – 61

the employers duties are divided under 2 Aspech

1. duties under the Act.

2. Duties under common law.
Duties under the Act. section 51-61 empl.Act

Every employer shall provide his or her employee with work or accordance with the contract of
service, during the period for which the contract is binding and eon the number of days equal to
the number of working days.

1. Payment of wages
An employer is supposed to pay wages as according to the agreement . the wages are
supposed to be paid in terms of back cheque, postal order or by direct payment to the
employee bank account.
2. Death of an employee
Incase of an employee died during the term of a contract of service his or her heirs or
legal representatives shall be entitled to the wages of any other remuneration paid by
employers.
3. An employer has to make sure that working days within the office are followed plus a
weekly rest. This shall be agreed upon parties.
4. The employer has to agree with the employee on the regulation of the working hours .
they should not be less than 48 hours per week.
5. The employer is supposed to pay an employee who is sick . an employer who has
completed no less than 1 month continues service with an employer ad who us incapable
of work because of sickness or injury is entitled to sick pay for the first month absence
from work he or she entitled to full wages and every other benefit whether for his or her
family or himself stipulated in the contract of service. If at the expiration of the second
month the sickness of the employee still continues the employer is entitled to terminate
the contract of service on complying with all the terms of the contract of service up to the
time of termination of employment.
6. The duty of employer to provide work section 40.
Common law
1. Conduct meetings
2. Recruit new employees
3. To make sure that working hours are followed effectively
4. To pay the employees
 5. To find best motivation ways to his or her employees
6. The duty of confidentiality
7. Terminate the employees’ contract in case the employee condustc misconduct that affects
the business.

The duties of the employee

Under the act is section 51-61 employment act

1. Weekly risk
An employee shall not be required to work for an employer for more than six consecutive
days without a day rest which shall be taken on any day which is customary or as shall be
agreed between the parties.
2. Length of working hours per week
The maximum working hours for employees sjhall be 48 hours per week.
The employer and the employee may agree that the maxmum working hours per week
shall not be less than 48 hours
3. Annual leave and public holidays
An employee shall once in very calendar year been titles to a holiday with full pay at the
rate of 7days in respect of each period of a continuous four months. An employee shall
also be entitled to a day holiday with full pay on every public holiday during his or her
employment.
4. Sick pay
An employee who has completed not less than one months continuous service with
employer and who is incapable of work because of sickness or injury is entitled to sick
pay.
5. Maternity leave
A female employee shall as a consequence of pregnancy have the right to a period of 60
working days leave from work on full wages referred to as “maternity leave’
6. Paternity leave
A male employee shall immediately after the delivery of miscarriage of a wife have the
right to a period of 4workng days leave from work.
 7. An employee is entitled to be given notice by the employer showing that he /she has been
terminated from the office.
8. An employee is entitled to receive from his employer noticed in writings of the following
particulars of employment.
a. Full names and address of the parties
b. The data on which employment under the contract begins
c. The title of the job
d. The place where the employees duties are to be performed
e. The wages which the employers is entitled to receive
f. The rate of any overtime pay
g. The employees normal hours of work and shaft
h. Number of days in annual leave
i. Terms and conditions relating to sickness or injury during work.

Safety of employees.

Such as working cooperation act.

With any office whether public office or private office the employee is protected from any
unusual behavior of act. And incase of any injuries or sickness still the employee is protected.

As per part iv section 36(1) of the employment regulation shall take reasonable steps to provide
for the medical care of sick or injured employees in accordance with the succeeding regulations.

Every employer shall cause steps to be taken to pressure the immediate treatment of all cases of
sickness and injury.

Drugs and medical equipment.

where employees in excess of 40 and not exceeding 500 are employed at one location the
employer shall maintain on the preservices at a place easily accessible at all hours when work is
in progress a cupboard or other suitable receptacle stocked with the drugs and medical
equipment.
Every employer will place a responsible person in charge of the cupboard and its contents and
fix suitable hour each day for his or her attendance to give medications or treatment to
employees who are sick or injured.

Unusual sickness

A medical office may in the case of unusual sickness direct that all employees their wives and
families shall be presented for inspiration as required by the medical officer.

The chief occupational health and hygiene officer or district medical officer may direct that
attention and hospital facilities be provided by the employer. A medical officer may require in
the case of a threat if any epidemic diseases that all employees their wives and families be
protected by vaccination or inoculation as considered necessary and every employer shall give
the medical officer all necessary assistance I camping out the vaccination.

Failure to provide for the sick or injured.

On failure by an employer to provide sufficiently for the accommodation and proper treatment of
the sick or injured employee as required by the regulations or if it appears that no provision
exists for the efficient treatment of any special case, a medical officer or an authorized officer
may at his discretion order the removal of the sick or injured employee for treatment.

The cost of the removal and cost of subsequent treatment until such time as the employee
contract of service is lawfully terminated shall be borne by the employer. BUT payment of that
cost shall not exempt the employer from liability for failure to comply with these regulations.

WAGES: 41-50 employment act 2006

Wages shall be paid in legal tender to the employee entitled to payment. An employer may with
prior written agreement of the employee pay wages by bank cheque , postal order, money order
or by direct payment to the employee bank account.

- Wages shall no be payable to any employee in respect of any period where he or she has
been sentenced and imprisoned by court of law.
 - An employee is not entitled to receive wages in respect of any period where he or she is
absent from work without authorization or good cause except that in the case of an
employee who has completed at least 3months continuous service with his or her
employer . the following shall ot constitute absence without good cause.
a. Absence attributable to the occurrence of exceptional events preventing the
employees from reaching his or place of work.
b. Absence attributable to a summons to attend a court of law
c. Absence attributable to the death of a ember of the employees family or dependent
relative.
- An employee who has completed at least 3 months cpontinuos service and is absent from
work or account of one f the situation specified above is entitled to receive wages as
though he or she had not been absent from work and had fully performed his or her duties
under his or her contract service.

Death of an employee

In the case of an employee dying during the term of a contract of service his or her heirs or legal
representatives shall be entitled to thewages and any other remuneration.

- Where an employee dies while at work or while traveling to his work place , their
employer shall be required to transport the employees body to a place of burial notified
by that employees next of kin

Payment of wages

The payment of wages in legal tender shall take place at the place of the employees work or if he
or she works at more than one location the premises of his or her employer from which he or she
works or from which his or her work is administered.

On the termination of his other employment in whatever means an employee shall within 7 days
from the date on which the employment terminates be paid his or her wages and any other
remuneration and accrued benefits to which he or she is entitled.
Payment of wages to another

Except where its expressly provided by law , no person may receive the wages due to any
employee on behalf of that employee without the written permission of the employee to whom
the wages are due.

Permitted deductions

The following deductions from remuneration due to an employee are permitted;

a. Ana mount in respect of any tax, rate, subscription or contribution.

b. Where the employee has previously given his or her written consent to a deduction being
made, the deduction being in respect of any amount representing a contribution to any
pension fund.
c. Deduction by way of reasonable rent or other reasonable charge for accommodation
provided by the employers to the employees or the employees’ family.
d. Union dues deducted
e. NB. An employer is not supposed to deduct from the wages of an employee the cost of
any protective gear or tools of trade which are provided by the employer.

PAY STATEMNTS

Every employee shall receive with each payment of ha or her wages an itemized pay statement
from his or her employer in writings in a form and language which the employee may reasonable
be expected to understand.

a. The amount of every deduction from his or her due at the end of that particular pay
period.
b. The amounts of every deduction from his or her wages during that pay period and the
purpose for which such deductions was made.
c. The employees net wages payable at the end of that pay period.
d. Where an employer fails to provide a pay statement as required or fails to provide a
statement that is accurate as employee shall have the right of complaint to a labour
officer.
Termination of employment

Termination of the employment can take place in the following instances.

a. Where the contract of service is ended by the employer notice.

b. Where the contract of service being a contract for a fixed term or task ends with the
expiry of the specified term or the completion of the specified task and is not renewed
within a period of one week from the date of expiry on the same terms or terms not less
favourable to the employee.
c. Where the contract of service is ended by an employee with or without notice as a
consequence of unreasonable conduct on the part of the employer towards the employee
d. Where the contract of service is ended by the employee in circumstances where the
employee has received black law dictionary notice of termination of the contract of
service from the employer but before the expiry of the notice.

NOTIFICATION AND HEARING BEFORE TERMINATION

An employer shall before reaching a decision to dismiss an employee on the grounds of

misconduct or past performance explain to the employee in a language the employee may be
reasonably expected to considering dismissal and the employee is entitled to have another person
of his other choice present during this explanation.

- An employer shall before reaching any decision to dismiss an employee hear and
consider any representations which the employee on the grounds of misconduct or poor
performance.
- The employer shall give the employee and the person if any chooses a reasonable time
within which to prepare the representations.
- Irrespective of whether any dismissal which is a summary dismissal is justified or
whether the dismissal of the employee is fair an employer who fails to comply is liable to
pay the employee a sum equivalent to 4 weeks net pay.
PROOF OF REASONS FOR TERMINATION
In any claim arising out of termination the employers shall prove the reason or reasons
for the dismissal and where the employer fails to do so the dismissal shall be deemed to
have been unfair.
 - The reason or reasons for dismissal shall be matters which the employer at the time of
dismissal genuinely believed to exist and which caused him or her to dismiss the
employee.

SUMMARY TERMINATION

Summary termination shall take place when an employer terminates the service of an employee
without notice or with less notice then that to which the employee is entitled by any statutory
provision.

- No employer has the right to terminate a contract of service without notice or with less
notice than that to which the employee is entitled by any statutory provision.
- An employer is entitled to dismiss summarily and the dismiss shall be termed justified ,
where the employee has be his or her conduct indicated that he or she has fundamentally
broken his or her obligations arising under the contract of service.

Summary dismissal

Is desired to takepace when an employer terminates the services of an employee without notice
or with less notice than that to which the employee is entitled to by any statutory provisional or

Contractual term. The conduct should be so gross that it affects one’s line of employment. This
was the principle in Jabi Vs Mbale Municipal Council (1975) it is 191court went on to state that
dismissal is wrongful where its effected without any justifiable cause and or reasonable notice.

In order for summary dismissal to occur the act of the employee warranting the dismissal must
be so grave where in contract it would amount to repudiation of the . Examples of summary
dismissal include the following;

- Alcoholism / drunkardness
- Incompetence in the line of duty
- Misconduct for example fighting fellow staff
- Immorality
- Disobedience of lawful orders.
In the case deep surfing against Insad (1890) ALLER 65.

It was held that a single act of misconduct can lead to a summary dismissal if it undermines the
relationship between the employer and the employee.

Unfair termination

An employee who has been continuously employed by his or her employers for at least 13 weeks
immediately before the date of termination, shall have the right to complain that he or she has
been unfairly terminated .

- A complaint made shall be made to a labour officer within 3 months of the date of
dismissal or such later period as the employee shall show to be just equitable in the
circumstances.
Wrongfully dismissal can lead to an award of general damages.

In the case of Obwolo Vs Barclays bank (1993)HLB179.

It was held that where no opportunity has been granted to a victim to be heard then the dismissal
is wrongful.

In the case of mubiru Vs Barclays bak SCCA 1 of 1998 , it was held that an employer is
empowered to summarily dismiss without notice if an employee is guilty of professional
misconduct.

This include;

- Absence from work

1. Absence from work
An employee has a continuing obligation to be personally available for work during
working hours. A serious breach of this obligation may be sufficient to justify summary
dismissal. This was held in Koning Vs Karanju properties (1968)EA 223
2. Disobedience (serious disobedience)
 An employee is under an obligation to obey all lawful and reasonable order of the
employer which are within the scope of his duties as defined by the contract. A refusal by
the employee to comply with n employer’s order may be a justification for summary
dismissal.
This was held in the case of East African trading co. Vs Seth (1975), ULR 21
3. Breach Of Implied Duty Of Faithful Service And Fidelity
It is not possible to give a precise definition of the scope of the implied term if faithful
service and fidelity and the sub-divisions given here have to be considered as examples.
these includes the following duties to work diligently and only for the employer during
working hours not to take or retain any secret profits obtained during the course of
employment respect the employers trade secrets and other confidential information and
not to willfully disrupt the employers business or affairs.
However irrespective of the particular form in which the duty of faithful service and
fidelity may manifest it self, it has one basic characteristics which is that it is founded
on Trust and Confidence . For this reason when summary dismissal is founded on a
breach of this term, the alleged breach must represent a significant and serious erosion of
the trust and confidence that would reasonably be expected to be necessary to maintain
the relationship.

4. Incompetence and negligence

A contract of employment is not a contract uberrimac fidelity and consequently as
employee’s failure to disclose his own shortcomings or incompetence to the employer
during the formation of the contract does not of itself entitle the employer to rescend
the contract unless perhaps when the employees concealment of incompetence is
fraudulent. On the other hand where at the formation of the contract of employment the
employee represents or hold himself out as possessing certain skill and it turns out that he
does not in fact have those skills, the employer may rescind the contract for
misrepresentation.
REMEDIES