When employment ends in Uganda, several amounts may be due, and severance is only one of them.
What may be owed
Outstanding wages for days worked
Accrued leave pay
Notice pay, where notice was not given and worked
Severance allowance, where you have six months of service and a qualifying circumstance applies
Any gratuity or bonus that forms part of the severance calculation
Severance is distinct from other terminal benefits such as accrued leave. Both are owed.
The timing
Terminal benefits must be settled within a reasonable time, and Labour Officers expect this to be prompt.
In practice, employers aim to pay within the employee's final payroll cycle or within 7 to 30 days of the last working day.
Where a Labour Officer determined the amount, payment should follow immediately after the decision or signed settlement.
The checklist before you accept
Do you have six months of continuous service?
Does your situation match one of the qualifying circumstances?
Has accrued leave been included separately from severance?
Is notice pay included where notice was not worked?
Does the severance figure account for any gratuity or bonus that should form part of it?
If you disagree with the amount
The amount is negotiable. If no agreement is reached, a Labour Officer determines it based on your length of service, wages and the circumstances.
Do not accept a figure simply because it was presented as final — the Act contemplates negotiation.
The penalty for non-payment
An employer who fails to pay on time and in the prescribed manner commits an offence and pays a fine of twice the amount payable.
Ask for documentation
Employers should document the payment date in the termination letter and keep proof of payment. Request copies of both.
Where to go
The Labour Officer for your district.
Frequently asked questions
What might I be owed?
Outstanding wages, accrued leave pay, notice pay where notice was not worked, severance allowance if you qualify, and any gratuity or bonus forming part of the calculation.
When should I be paid?
Within a reasonable time, which Labour Officers expect to be prompt — in practice the final payroll cycle or within 7 to 30 days.
Can I dispute the severance amount?
Yes. The amount is negotiable, and if no agreement is reached a Labour Officer determines it based on service, wages and circumstances.
Is severance the same as leave pay?
No. Severance is distinct from other terminal benefits such as accrued leave, and both are owed.
What documentation should I request?
The payment date documented in the termination letter, and proof of payment. Employers are expected to keep both.