Companies lay off more employees
What you need to know:
- Last month, Mr Jean Byamugisha, the chief executive officer of Uganda Hotel Owners Association, said the situation was dire.
More companies have suspended workers following the extension of the lockdown by 21 days.
Some of the companies said they were generating less income which cannot facilitate expenses.
An internal communication from Verma Company Limited yesterday stated that employment contract obligations had been suspended.
“Management has resolved to suspend all contract obligations of the company and your work obligations as stated in your respective employments contracts effective April 14. However, you will still be entitled to medical benefits as per your respective medical insurance covers,” the communication reads in part.
Mr Sanjay Verma, the company’s executive director, said the suspension will end when government lifts the quarantine or announces that the situation is safe for reopening and operation of business.
One of the employees of a supermarket in Kampala, who only identified herself as Irene, said the number of workers had been reduced following the extension lockdown.
“Initially, during the first lockdown, we were rotating, five work this week and then the other work the following week, but now the boss said the supermarket is not generating much money, so she has asked most of us to be home and will communicate after this week,” Ms Irene told this newspaper.
Last month, Mr Jean Byamugisha, the chief executive officer of Uganda Hotel Owners Association, said the situation was dire.
“The situation is even worse than what we are seeing. Many people are only beginning to realise the consequence because now big hotels are closing. Already, about 80 per cent of the hotels upcountry and across the country have closed,” Mr Byamugisha said.
Mr Arthur Mpeirwe, a lawyer, said the law does not provide health or other emergencies as grounds for termination of employment.
Mr Mpeirwe said it is only situations such as death or insolvency of an employer or the employees own misconduct that are considered grounds for termination though even then the employee has to be notified and paid severance package or subjected to disciplinary process in case of misconduct.
