Employers’ body faults SMEs on labour laws
Posted Wednesday, February 20 2013 at 02:00
Failure to meet regulations has forced many SMEs to pay penalties.
Despite being the biggest employers in the country, majority of small and medium enterprises either do not or partially comply with laws governing employee-employer relations, costing them heavily.
Presenting findings of a study commissioned by Federation of Uganda Employers (FUE) and the International Labour Organisation (ILO), Mr Douglas Opion, a consultant said non-compliance to labour related regulations has forced many SMEs to pay.
Out of the 120 SMEs that were interviewed between July and October last year in Kampala, 53 said they were partially aware of the laws, 26 were not aware, one felt such laws are not relevant while only 40 of them were aware of the laws.
Although all the enterprises that took part in the survey are in Kampala, 55 of the 120 SMEs were not aware of FUE’s existence while 98 were not even aware of services offered. Of about 400 members of FUE, SMEs account for only 35 per cent.
Mr Hezron Njuguna, the International Labour Organisation specialist, employers’ activities, said FUE can help SMEs comply with labour laws by creating a guide which would contain the model letters of appointment, warning letter, dismissal, and setting up a grievance procedure, among others. “All enterprises have to comply with labour regulations to avoid repercussion that may arise for breach of laws,” Mr Njuguna said.
Ms Rosemary Ssenabulya, the FUE executive director, said the organisation plans to follow up with interest SMEs to join the federation.