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Section 87: When You Lose Severance Allowance in Uganda

87.No severance allowance under summary dismissal

(1)No severance allowance shall be paid in circumstances where an employee—

(a)is summarily dismissed with justification;

(b)is dismissed by the employer and unreasonably refuses to accept an offer of re-employment by the employer at the same place of work, under no less favourable terms and wage rate than he or she was employed at immediately prior to the dismissal; or

(c)abandons his or her employment, or absconds from his or her place of work without leave for a period of more than three days without any explanation being provided to the employer.

(2)No severance allowance shall be paid where—

(a)the employer is a partnership and the employee's employment ceases on the dissolution of the partnership, and the employee either enters the employment of one or more of such partners immediately after such dissolution or the employee is offered, and unreasonably refuses employment on less favourable terms by one or more of such partners;

(b)the employee's employer dies, and the employee either enters the employment of the personal representative, widow, widower, or any heir of the deceased employer or immediately after such death, he or she is offered, and unreasonably refuses employment on less favourable terms by any such person or persons; or

(c)the contract which is terminated is a probationary contract.

(3)Where an employee accepts employment in the circumstances mentioned in subsection (2)(a), there shall be no break in continuity of service and the new employer or employers shall assume responsibility for all rights, including severance allowance of the employee arising in connection with his or her period of employment with his or her former employer or employers.

Plain English Summary

An employee is not entitled to severance allowance if they are fired for a valid reason (summary dismissal). Severance is also denied if the employee ...

AI-generated, for reference only.

🔍Search Tips
  • • Search by keyword: "land", "tax", "arrest"
  • • Use exact phrases: "land commission"
  • • Enter citations: 45, 45(3)(a), 45:3:a
  • • Press / to search, Esc to close

Searching within Employment Act. Faster results.