Hiring in Uganda

The terms set out role, salary in UGX, working hours, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

English is the official language and the standard contract language for commercial roles.

Fixed-term contracts are common and the Employment Act does not cap their length or renewals. Casual engagements are different: they are limited to six continuous months, after which the worker is treated as a regular employee.

Set probation from day one. An extension needs the employee's agreement in writing, and the same person cannot be put on probation twice.

Watch the end date. An employee who is still being paid after an unextended probation period lapses is treated as confirmed.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Hours including overtime should not exceed 10 a day or 56 a week.

There is no salary threshold, so overtime rules reach professional hires as well as junior staff. Put the position in writing, particularly for senior roles where long hours are expected.

At 21 working days, the statutory entitlement is already generous, so it is the figure to budget with.

Sick leave runs to two months on full pay followed by four months on half pay. Maternity leave is 60 working days on full pay and paternity leave is 4 working days, both funded by the employer, so confirm whether the EOR bills them at cost.

Either side may terminate on notice or pay in lieu. A pre-dismissal hearing is mandatory. The employee must hear the reasons in a language they understand, may bring a person of their choice and gets five working days to prepare. Skipping it costs four weeks' net pay, whatever the merits.

Severance applies after six months' continuous service in cases such as unfair dismissal, redundancy and incapacity. Redundancies need 30 days' notice to the Labour Commissioner.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and severance. The basic award for unfair dismissal is eight weeks' wages, so keep a documented reason.

Private medical cover and group life are standard for professional roles even though they are not mandatory. Employers are also liable for work injuries under the Workers' Compensation Act, so ask how the EOR covers that risk.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer NSSF adds 10% on top of gross salary. That is before the EOR fee. Since July 2026 the first UGX 335,000 a month is tax-free, and income above UGX 10 million a month is taxed at 40%.

Employees also pay Local Service Tax, a graduated annual levy deducted in the first four months of the July to June tax year.

NSSF arrears are the trap. Contributions are due by the 15th of the following month, and late payment attracts a 10% penalty for every month the amount stays outstanding, so check the EOR's remittance record.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the local recruitment evidence is the sponsor's job, not yours.

The Labour Minister can also reserve job categories for citizens, and no permit will issue for those roles without an exemption certificate. Check the role is not restricted, and set start dates after approval, not before.

Controllers and processors must register with the Personal Data Protection Office and renew every year, so ask for proof of the EOR's registration. Get the data processing terms in the service agreement, not just the privacy notice.

Transfers out of Uganda need equivalent protection in the destination country or the employee's consent. Ask where payroll data is hosted and who in the partner chain can see it.

Registering a company with the Uganda Registration Services Bureau is quick, but the running cost is the point: a company secretary, a local registered office, annual returns, accounting, and separate registrations with the URA, NSSF and the data protection office set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.