One way your employer is stealing from you.

Published: May 12, 2025

Table of contents:

Are they devouring us?

The lack of formal job contracts among Ugandan employers represents a significant violation of workers’ rights, undermining the principles of fair labor practices within the country. Employment contracts are fundamental legal instruments that define the terms, conditions, and mutual obligations of both the employer and the employee. Yet, a notable portion of the workforce in Uganda remains without any written agreement, exposing them to insecurity and exploitation. This not only contravenes established labor laws but also weakens the overall framework of workers’ protection, creating an environment where arbitrary dismissal, wage disputes, and unfair treatment can occur unchecked.

The Importance of Employment Contracts in Uganda.

According to the third annual Labour Survey report for 2021 by UBOS, only 32.7 percent of Uganda’s working population possesses written contracts—leaving a staggering 67.3 percent relying on oral agreements. Among those with written contracts, many experience alarming situations where employers append signatures on documents but then withhold copies. This unethical practice strips workers of vital evidence concerning their employment terms, severely hindering their ability to seek justice in cases of abuse or contractual disputes. Thus, understanding what employment contracts are in Uganda and why they are crucial cannot be overstated.

What does the Constitution say?

The Constitution of Uganda explicitly guarantees the right to fair labor practices and protection from unfair dismissal under Article 40, no less safeguarding workers’ rights to acceptable and equitable work conditions. Furthermore, the **Employment Act of 2006** mandates that employers issue a written contract to every employee, clearly stipulating the terms of employment, remuneration, and other conditions. Employers’ failure to provide copies of signed contracts constitutes a direct violation of these legal requirements, undermining the legal certainty that contracts are meant to provide.

The ‘Brief-contract’ syndrome

The absence of formal contracts, along with the widespread use of unjustified short-term contracts lacking legitimate grounds, threatens job security for many workers. Employers often issue short-term agreements without reasonable cause or renewal mechanisms, keeping employees in a perpetual state of uncertainty. Such practices undermine the principles of tenure protection and stability as outlined in labor regulations. The arbitrary use of ephemeral contracts denies employees access to essential benefits such as severance pay, pension contributions, and lawful notice periods, thus violating their fundamental rights and diminishing their economic welfare. Beyond the immediate legal violations, these practices pose broader socio-economic challenges. Workers lacking formal contracts are less likely to invest in skills development or plan long-term careers, leaving them vulnerable and less productive. This insecurity can lead to diminished morale and increased exploitation. Moreover, it hampers mechanisms for social dialogue between employers and employees, which are vital for constructively addressing workplace grievances.

What next?

The failure of many Ugandan employers to provide or properly manage job contracts signifies a serious infringement on workers’ rights as guaranteed under both the Ugandan constitution and labor law frameworks. The practice of withholding contract copies exacerbates this violation by depriving employees of essential legal protections and recourse. Furthermore, the prevalence of unjustified short-term contracts undermines job security and the social protections intended to accompany employment. Addressing these critical issues requires concerted efforts from policymakers, labor inspectors, and civil society to enforce existing laws and promote awareness among workers of their rights. This way, we can foster a fairer, more secure labor environment in Uganda, ensuring that all individuals understand how to draft employment contracts and the legal obligations they entail.