family law

1. Issue 4. What is the appropriate way in which the company can legally lay off the 60
employees in the circumstances?
In the case of Cissy Nankabirwa Vs The Board of Governors St. Kizito Institute Kitovu,
L.D.C 60/2016 “The employer has an inherent right to restructure posts in his/her
organization as long as the employees are aware of the process....”.
An Employer who seeks to lay off several employees must consider the following before
making the final decision to terminate the employees;
Criteria for collective termination: The Employer must first determine if its circumstances
fall under the ambit of collective termination as provided for under Section 81 of the
Employment Act 2006. For a termination to amount to collective termination under the
law, employees to be laid off should be not less than 10, it must be due to economic,
technological, structural or reasons of a similar nature and not less than ten employees
must be structured for termination.
Notification of Employees: The Employer must then notify all employees of the
commencement of the restructuring process. This is to enable them mentally prepare for
whatever decision is to be reached regarding their fate with the company. This notification
should be done in not less than a month’s time prior to the termination. This can be
through an internal Memo.
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2. • Assessment of which employees shall be affected: The Employer then carries out an
objective, independent and fair assessment of all employees before determining who
is eligible for termination. This can be done through an appraisal system and also
employee interviews to determine their attitude, willingness and preparedness to
leave or stay in the organization
• Notice to the Commissioner: Upon making the decision of the employees that will
need to be terminated, a notice to the commissioner of labor giving the particulars of
the employees affected and the reasons for the termination should be drafted. This is
pursuant to Section 81 (1) (a) of the Employment Act 2006 and Regulation 44 (a) of
the Employment Regulations 2011 which states that notice to the Commissioner shall
be as per form A and B as specified in the 6th Schedule.
• Preparation of terminal benefits: The Employer has to begin preparing the resources
necessary to effect the termination including salary arrears/wages and any other staff
entitlements upon termination. This is a requirement pursuant to Regulation 44 (b) of
the Employment Regulations 2011.
• Notice the Labor Union: provide the representatives of the labor union, that
represent the employees with relevant information, and in good time which shall be a
period of at least four weeks before the first of the terminations shall take effect. This
is a requirement pursuant to Section 81 (1) (a) of the Employment Act 2006. As per
the facts at hand this apply to the 13 employees under a labor Union

3. • Issue Termination Notices: The Employer then prepares and serves termination
notices which are customized to the respective employees, giving them notice
periods in line with the duration of service in accordance with their contracts.
Section 58 of the Employment Act 2006 provides for different notice periods.
• Two weeks’ notice for an employee who has worked for more than six months but
less than one year.
• One month notice where an employee has worked between one year and five
years.
• Two months’ notice where an employee has worked between 5 years and 10 years.
• Three months’ notice where an employee has worked for 10 years or more.
• In relation to the facts, the 13 employees under a labor Union and have worked for
more than 10 years are entitled to a notice of 3 months.
• The 5 casual employees who have worked for more than 3 months are entitled to
benefits and rights equal to other employees. Therefore they will be entitled to a
notice period of one month.
• Exit forms: Any organized Employer shall ensure that exit forms are given to the
employees to fill in before leaving so that the process of handover and separation
is handled professionally and amicably.

4. • Salary loans: If there are any salary loans obtained by employees internally,
the accounts must be reconciled and a payment plan agreed upon including
setting off from the entitlements due to the employee upon termination. If
the loan was externally obtained, then the relevant bank or lender must be
notified immediately of the termination.
• Notification of clients: Depending on the kind of work the employer is
engaged in, it is a common occurrence for clients and staff to develop a
relationship based on their interactions. For employees that have been
dealing with customers regularly, it will be prudent for the Employer to
notify the customers that the employees are no longer employees of the
company to prevent any reputational risk or damage and misrepresentation
by the affected staff.
• Certificates of Service: The Employer should then prepare certificates of
service for the respective employees who have handed over.
• Notification of relevant statutory bodies: The Employer then notifies
relevant statutory bodies including NSSF and URA and ensures that the
necessary amendments are made at the respective authorities.