By Jackline Nabirye
Officer Communications & Brand Management-ICPAU
Accountants have been urged to take a leading role in helping organisations navigate Uganda’s amended labour laws, as the new provisions introduce significant financial, compliance and governance implications for employers. The call was made by Counsel Samuel Mukiza Tere, an Advocate, Employment and Labour Law Specialist and Court Accredited Mediator, during a session on “Amendments to the Labour Laws: Plying the Legal Uncertainties of the New World of Work” at the 31st ICPAU Annual Seminar.
Mukiza challenged accountants to stop viewing employment law as an issue reserved for human resource and legal departments, arguing that the latest amendments have consequences that directly affect organisational finances and financial reporting.
“In the new world of work, labour law is no longer merely a legal issue; it is an accounting issue, a governance issue, and ultimately a boardroom issue,” Mukiza noted.
Mukiza pointed to several provisions of the Employment (Amendment) Act that could increase employers’ financial exposure, including extended sick-pay obligations, severance payments, the regularisation of long-term casual workers, childcare facilities and potential liabilities arising from unfair dismissal. Under the amended law, employees are entitled to full wages for two months while on sick leave, followed by half pay for another four months. An employee can only be terminated on grounds of medical incapacity after six months and following a medical opinion.
The law has also introduced a statutory severance formula of one month’s salary for every year worked, creating a more predictable but potentially significant liability for employers, particularly those with long-serving employees. Mukiza therefore called on finance professionals to assess how the changes affect their organisations’ payrolls, budgets, provisions and long-term workforce costs.
A key message from the presentation was the need for accountants to work beyond their traditional financial reporting responsibilities and actively participate in organisational compliance. Mukiza urged organisations to establish cross-functional teams bringing together Finance, Human Resources, Legal and Compliance to coordinate implementation of the new law. For accountants, this means reviewing existing financial provisions and modelling potential liabilities under the new framework.
Mukiza also highlighted the increased financial risks associated with non-compliance with dismissal procedures. The amended law makes the pre-dismissal hearing procedure statutory. Employers must explain the reasons for a proposed dismissal, give the employee at least five working days to prepare a defence, allow them to have a person of their choice present and genuinely consider their representations before making a decision. Failure to follow the procedure attracts an automatic liability equivalent to four weeks’ net pay, regardless of whether the dismissal itself was substantively justified. Mukiza said these provisions demonstrate why finance professionals need to understand employment law and factor related risks into organisational planning.
Beyond compliance, the presentation challenged accountants to see themselves as strategic partners in managing employment-related risk. The amendments extend protections to casual and domestic workers, introduce stronger measures against sexual harassment, provide for breastfeeding and childcare facilities and establish new requirements concerning recruitment agencies and migrant workers.
These changes mean that decisions traditionally handled by HR or legal departments can now have direct implications for an organisation’s financial position. Mukiza urged organisations to immediately review employment contracts, disciplinary policies and termination procedures, train managers and supervisors on the new requirements, update payroll systems and review financial statements to ensure that severance provisions reflect the revised statutory formula.
Rather than waiting for disputes, penalties or unexpected costs to expose gaps in compliance, finance professionals were encouraged to work proactively with management, HR, legal and compliance teams to identify potential liabilities and incorporate them into organisational planning. As Uganda’s workplaces continue to evolve, accountants are being called upon to expand their role beyond the numbers and help organisations build financially sound, legally compliant and sustainable workplaces.
The session was held during the 31st ICPAU Annual Seminar, running from 2–4 September 2026 at Imperial Resort Beach Hotel, Entebbe, and online under the theme “Transforming Institutions and Lives for Sustainable Growth.”
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