Observation (CEACR) - adopted 2021, published 110th ILC session (2022)

Uganda

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) (Ratification: 1963)
Protection of Wages Convention, 1949 (No. 95) (Ratification: 1963)

In order to provide a comprehensive view of the issues relating to the application of ratified Conventions on wages, the Committee considers it appropriate to examine Conventions Nos. 26 (minimum wage) and 95 (protection of wages) together.

Legislative developments. The Committee notes that, according to information provided by the ILO Country Office for the United Republic of Tanzania, Burundi, Kenya, Rwanda and Uganda, the Employment Act 2006 is currently being revised in consultation with social partners. The Committee requests the Government to provide information on the developments in this regard, and to provide a copy of the amended Employment Act 2006, once adopted. The Committee also hopes that its comments on the Protection of Wages Convention, 1949 (No. 95) will be taken into account in the framework of the revision of the Act, and recalls that the Government can avail itself of the technical assistance of the ILO in this regard.

The Committee notes with deep concern that the Government’s report has not been received. It expects that the next report will contain full information on the matters raised in its previous comments. The Committee informs the Government that, if it has not supplied replies to the points raised by 1 September 2022, then it may proceed with the examination of the application of the Convention on the basis of the information at its disposal at its next session.

Article 3 of Convention No. 26. Operation of the minimum wage fixing machinery. The Committee recalls that, following the discussion of this case before the Conference Committee on the Application of Standards in June 2014, it had requested the Government to provide information with regard to the announced reactivation of the Minimum Wages Advisory Board and the subsequent fixation of a new minimum wage in the country. The Committee notes that the Government indicates in its report that a Minimum Wages Advisory Board was appointed in 2015 and that it undertook a comprehensive study of the economy with a view to providing advice to the Government on the feasibility of fixing a minimum wage in the country and the form that the minimum wage should take. The Government also indicates that the report of the Board was under discussion in the Cabinet. Despite the progress made with the reactivation of the minimum wage fixing mechanism in 2015, the Committee notes with concern that the minimum wage, which was last set in 1984, has yet to be adjusted. It therefore requests the Government to take the necessary measures to revise the level of the minimum wage without further delay. Recalling the importance of ensuring the close involvement of employers’ and workers’ organizations at all stages of this process, the Committee requests the Government to provide information on the composition of the Minimum Wages Advisory Board and on the consultations undertaken with the social partners in revising the level of the minimum wage.

The Committee notes with deep concern that the Government’s report on Convention No. 95, due since 2017, has not been received. In light of its urgent appeal launched to the Government in 2020, the Committee proceeds with the examination of the application of Convention No. 95 on the basis of the information at its disposal.

Following its examination of the information at its disposal, the Committee notes that it is still missing important information on measures giving effect to Articles 1, 4, 7(2), 8, 10, 12(1) and 14(a) of Convention No. 95. The Committee is therefore bound to repeat its previous comments with regard to those Articles.

Article 1 of Convention No. 95. Coverage of all parts of the remuneration. The Committee notes that the definition of “wages” in section 2 of the Employment Act excludes “contributions made or to be made by the employer in respect of his or her employee’s insurance, medical care, welfare, education, training, invalidity, retirement pension, post-service gratuity or severance allowance”. The Committee recalls that the definition of wages for the purposes of the Convention is very broad and that it intends to cover the benefits excluded under section 2 of the Employment Act. Since this Act is the main legislation implementing the Convention, the Committee requests the Government to indicate the measures taken to provide workers with the protection afforded in the Convention in relation to the elements of their remuneration which are excluded under section 2 of the Employment Act.

Article 4. Partial payment in kind. The Committee notes that sections 41(3) and 97(2)(i) of the Employment Act address the issue of partial payment of wages in kind and provide that the Minister may adopt regulations on this matter. It requests the Government to indicate whether such regulations have been adopted.

Article 7(2). Works stores. The Committee notes that section 41(4) of the Employment Act provides that an employee shall not be obliged to make use of any shops established by the employer for the use of his or her employees or services operated in connection with the undertaking. The Committee recalls that Article 7(2) requires that where access to other stores or services other than those operated by the employer is not possible, the competent authority shall take appropriate measures in order to ensure that goods and services are sold at a fair and reasonable price and in the interest of the workers. The Committee therefore requests the Government to indicate what measures are in place in order to ensure the application of this provision of the Convention.

Articles 8 and 10. Deductions from wages and attachment of wages. The Committee notes that section 46(1) of the Employment Act provides a list of authorized deductions from wages and that section 46(3) provides that attachment of wages shall be limited to no more than two-thirds of all remuneration due in respect of a specific pay period. The Committee therefore notes that, while there is an overall limit on attachment of wages, there is no such limit for deductions from wages. In this regard, the Committee recalls that, in addition to setting specific limits for each type of deduction, it is also important to establish an overall limit beyond which wages cannot be further reduced, in order to protect the income of workers in the case of multiple deductions. The Committee therefore requests the Government to take the necessary measures for the establishment of specific and overall limits to deductions from wages.

Article 12(1). Regular payment of wages. With reference to its previous request concerning the issue of irregular payment of wages, the Committee notes that the Government merely repeats in its report the information previously provided. In relation to the lack of a functional Industrial Court, which had been noted in its previous comments, the Committee notes that information is available on the Court’s website indicating that a number of awards have been adopted since 2015. It also notes that two judges and the registrar of the Court have participated in a training activity on international labour standards delivered by the International Training Centre of the ILO in Turin in June 2017. In this context, the Committee once again requests the Government to provide up-to-date information on the situation of wage arrears in the country, including data on the number of workers affected by non-payment or delayed payment of wages, the sectors concerned and the results of labour inspections on these issues, and to indicate whether the Industrial Court has been dealing with any such cases.

Article 14(a). Information on wages before entering employment. The Committee notes that section 59 of the Employment Act provides that an employee shall receive from the employer information on wages not later than 12 weeks after the date on which employment commences. The Committee recalls that Article 14(a) requires effective measures to be taken in order to ensure that employees are informed of the conditions in respect of wages before they enter employment. The Committee therefore requests the Government to indicate which measures are in place in order to ensure full implementation of this Article of the Convention.

[The Government is asked to reply in full to the present comments in 2022.]