My employer isn’t remitting my savings, what should I do?

Friday November 8 2019

Moses Ssesanga

Moses Ssesanga 

By Moses Ssesanga

I have a contract with my bosses that expired last year. I have tried several times to ask for a new one but they keep on promising. Secondly, my NSSF money is not remitted yet it is deducted from my salary every month. When you complain, they only remit for two months in a year, what can I do? Stella.

Dear Stella,
Chapter 25 of the Employment Act of 2006 clearly spells out what constitutes an employment contract. The employment contract may be oral or written.

However, they both have the same impact under the law. Therefore, from your narrative, it’s apparent that the contract you had signed with your employer, though expired, is still considered valid under the law. This is because the terms which you agreed on signing the contract are still obtaining, ie, you are still earning a salary, your NSSF is still being deducted from your salary, though not regularly remitted, which is against the law.

Probably, your PAYE returns are also being filed by your employer as required by law, etc. The only difference is that you have not been officially notified in writing of the renewal of your contract.
Ideally in your case, when your contact was about to expire, your employer should have communicated or notified you in writing of the intention not to renew your contract.

However, since this was not done, the legal implication is that your contract is assumed to have been renewed on the original terms.
By continually assigning you more work and paying your salary, is enough confirmation that your employer is still recognising the validity of the contract he signed with you, even though this recognition is not in writing.

As for the irregular remittances of your NSSF (5 per cent your contribution plus the 10 per cent employer’s contribution), your employer is running a big risk of not only being forced to cough up all the money deducted from your wages over the period, but also in addition may be made to pay fines and damages as would be determined by the Labour court.
All you have to do is to pay a visit to the Labour Officer or NSSF offices in your locality and the rest as they say shall be history.


Moses Ssesanga
Head Human Resource
NMG - Uganda