Handling a redundancy in Uganda: employer's checklist
In brief
Redundancy is a fair reason to terminate, but only if it is genuine and handled properly, with severance where due. This checklist covers the process.
Who it's for & when to use it
Who it's for: Employers reducing roles, and their advisers.
When to use it: When roles are genuinely no longer required.
When not to use it: To disguise a performance or conduct dismissal as redundancy.
The checklist
1. Confirm a genuine redundancy
- Confirm the role is genuinely redundant for operational reasons — a valid reason for termination (Employment Act s.67).
- Record the business reason (restructuring, closure, downturn) and the roles affected.
2. Consider alternatives
- Consider redeployment, redeployment with retraining, or other alternatives to redundancy, and record the outcome.
3. Consult and select fairly
- Consult the affected employees and use objective selection criteria; follow a fair procedure (s.66).
- Give the notice required by the contract or the Act, or pay in lieu (s.58).
4. Pay severance and settle
- Pay severance allowance to a qualifying employee whose contract is terminated by reason of redundancy (ss.87–89).
- Settle wages and accrued leave, and issue a certificate of service.
5. Keep the record
- Keep the reason, consultation, selection criteria and settlement on file to answer any unfair-dismissal claim.
Key authorities
- Employment Act, Cap. 226 (2023 Revision) — ss.58, 66, 67, 87–89.
Checklist · Employment & labour.
Actively maintained.
Last reviewed 9 June 2026; next review due 9 June 2027.
This resource is a practitioner orientation and general information, not legal advice, and does not create an advocate–client relationship. It is AI-generated. Ugandan law changes and chapter and section numbers were revised in the 2023 Laws of Uganda. Verify every statute, rule, form, fee and authority against the current primary source — and the specific facts of your matter — before relying on it.