Labour Unions Act, 2006

The Act comes into force on a date appointed by the Minister by statutory instrument; the Minister may appoint different commencement dates for different provisions.

This section provides definitions of terms used in the Act (for example: affiliated union; child; employee; employer; Minister; registrar; strike).

Every registered labour union and federation must annually submit to the Registrar a list of organisations (in Uganda and abroad) it is affiliated with and a list of organisations (in Uganda and abroad) from which it has received financial assistance; an officer who fails to provide required information within reasonable time or knowingly gives false particulars commits an offence.

The registered organisations of labour unions must appoint a representative of a labour union to the Labour Advisory Board as designated by the Registrar.

Registered labour unions may form or dissolve branches for managing their affairs and must keep the Registrar informed; they must also provide branch number and location information when requested by the Minister or Registrar.

Employees have the right to organise in any labour union and may assist in running unions, bargain collectively, engage in lawful collective-bargaining activities, and withdraw labour or take industrial action.

Employers are prohibited from interfering with employees' exercise of association rights, union formation or administration, discriminating to discourage union membership, dismissing for lawful union activity (including certain industrial action), or denying union officials access and facilities.

An employer who contravenes section 4 commits an offence and is liable on conviction to a fine not exceeding ninety-six currency points or imprisonment for a term not exceeding four years, or both; and for a continuous offence a fine of two currency points for every day or part of a day.

An employee or a labour union may bring an action to the Industrial Court if satisfied that an employer has contravened section 5; the Industrial Court must order appropriate relief if it is satisfied that a contravention occurred, including possible reinstatement of a dismissed employee.

The Registrar may investigate employers for compliance with sections 3 and 4 and can require employers to produce books or provide information; it is an offence for an employer to obstruct investigations or fail to produce or furnish required materials; an employee may bring a right of action to the Industrial Court if rights under sections 3 or 4 are infringed.

Labour unions and federations’ actions regulating employer-employee relations are not unlawful merely because they restrain trade.

Federations of labour unions may be established for lawful purposes; the Secretary General of a registered federation must lodge specified lists and rules with the Registrar and must ensure those particulars are correct and kept up-to-date; a registered labour union may affiliate to a registered federation.

The Minister must appoint and notify a Registrar of Labour Unions; the Registrar must be a senior public officer responsible for functions conferred by the Act; the Minister may appoint assistants and review appointments; officials acting in good faith and without negligence are protected from suit.

The Registrar must keep and maintain a register of labour unions and other prescribed books, and record prescribed particulars; the Minister may direct what other books are required.

An application for registration must include three certified copies of the constitution and the rules and a statement of specified particulars; the application may be made by the Secretary General or any other officer of the organisation seeking registration as a labour union.

A labour union cannot be registered unless its executive committee members or members of other committees are employed in Uganda.

A labour union must not be registered under a name similar to or likely to cause confusion with an existing registered union or one that has applied for registration.

The Registrar must register a labour union in the prescribed manner and issue a certificate of registration; the Registrar may require additional information; the registration process is to be completed within 90 days of application submission.

The Registrar must refuse to register a labour union if satisfied of specified grounds, and must inform in writing the union of reasons for refusal within a reasonable time from receipt of the application.

The Registrar must cancel a registered organisation's registration for specified grounds, must give at least two months' written notice (except in one exception), a registered organisation may show cause within two months, the Registrar may hold inquiries and must state grounds and immediately serve cancellation orders.

An aggrieved labour union may appeal the Registrar's refusal, delay or cancellation of registration to the Industrial Court within one month.

When a registered organisations registration is cancelled under section 20 it loses the rights and immunities of section 24; officers and members are protected from civil or criminal proceedings for acts in contemplation of or in furtherance of a labour dispute; any cancelled-unions certificate must be returned by the Secretary General to the Registrar within one month.

The Registrar may interdict or suspend an officer of a registered organisation after a hearing if satisfied of conviction or investigation for misuse of funds or willful failure to comply with Registrar's directions; the Registrar must forward a certified copy of the decision to the Industrial Court as soon as practicable; the Industrial Court may order removal or reinstatement.

Employers must recognise registered labour unions/registered organisations for collective bargaining where employees are members; the Registrar must require showing cause within 21 days and may order recognition; failure to comply is an offence with fines and imprisonment.

A registered organisation is liable on any valid and enforceable contract made by it or by an agent acting on its behalf.

Registered organisations and organisations seeking registration may sue or be sued under the name by which they operate or are generally known; a cancelled- registration organisation may sue under its registered name.

The constitution or rules of every registered organisation must provide for appointing or electing at least three trustees and for filling trustee vacancies to ensure at least three; officers must not be trustees; only persons who are members of the organisation or of a bank approved by the Registrar may be appointed or elected trustees.

Property belonging to a registered organisation vests in its trustees for the use and benefit of the organisation and its members; the executive committee may direct trustees to deal with that property, but trustees must not deal with it unless satisfied that the executive committee acted lawfully and in accordance with the organisation's constitution or rules.

The trustees of a registered organisation may purchase, lease, sell, exchange, mortgage or lease any land or real property.

Minors may be members of a labour union (subject to union rules), are entitled to the rights of members and to capacity to execute instruments necessary under union rules, but may not serve on the executive committee or be a trustee of a registered organisation.

Officers (except the Secretary General and treasurer) must be persons employed in the industry concerned; officers may not be required to relinquish office solely because they stop being employed in that industry; a person may not hold office full-time if salaried elsewhere; a person convicted of fraud or dishonesty may not hold office.

A person may not be a voting member of a registered organisation unless they are a member and are employed or resident in Uganda; additionally, no person may be a voting member if their monthly subscription is more than four months in arrears (subject to the organisation's constitution or rules).

Registered organisations must hold an annual general meeting each calendar year, specify the meeting type in the notice, and hold the AGM within 18 months of the previous AGM; the Registrar may call an AGM if an organisation fails to hold one and may give directions including deeming a simple majority present to constitute the AGM.

The executive committee must convene an extraordinary general meeting on the request of not less than one-tenth of its voting members; requesters must state the meeting's objects and sign the request; if the committee fails to convene within specified time limits, the members must report to the Registrar who may direct the meeting or refer it to the Industrial Court.

Registered organisations must keep minutes of general meetings and executive committee meetings; the minutes book must be kept at the registered office and be open without charge to any member; a member is entitled to a copy within seven days of request on payment of a prescribed fee.

Two or more registered labour unions may amalgamate if a majority of members (or delegates representing a majority) of each union vote in favour.

The Secretary General must give a written notice of amalgamation to the Registrar (signed by the Secretary General and at least five members of each amalgamating union); the Registrar must register the amalgamated union if satisfied that the Act's requirements are met; aggrieved registered unions may appeal to the Industrial Court.

A registered organisation’s name cannot be changed or added to unless written notice is given to the Registrar and the Registrar gives written approval; a name change does not affect the organisation’s rights or ongoing legal proceedings and proceedings may continue under the new name.

Registered organisations must maintain a registered office and postal address in Uganda, notify the Registrar of their location and changes, and may appeal certain Registrar orders within one month to the Industrial Court.

Sets formal requirements for amendments to a registered organisation’s constitution or rules, including signing by the executive committee and registration by the Registrar when satisfied.

Members and persons eligible to apply may obtain a copy of a registered organisation's constitution or rules on demand and on payment of a reasonable fee; members and prospective members may inspect copies at the registered office without fee during normal office hours; branch offices shall be sent a copy.

Registered organisations must display notice of changes of officers or trustees at their registered office and must send notice of changes to the Registrar within fourteen days with the prescribed fee; the Registrar may require evidence before registering changes and may refer unresolved matters to the Industrial Court.

When a registered organisation is dissolved under its rules, a notice signed by the Secretary General and seven members must be sent to the Registrar and published within fourteen days; the Registrar must register the dissolution if satisfied it complied with the constitution or rules; the dissolution takes effect from the date of de-registration.

When dissolved, a registered organisation must cease to exist and lose its rights; it must also deal with claims (after national notice) in priority.

The section sets out what makes up the funds of registered federations and labour unions, requires the treasurer to keep those funds, and requires the treasurer to submit annual twelve‑month income and expenditure estimates to members for approval.

The funds of a registered organisation may be expended for listed lawful objects (subject to its constitution/rules and the Act); the funds must not be used to pay fines or penalties imposed on individuals or officers, except when imposed on the organisation itself.

Every registered organisation must keep proper books of account that show a true and fair view of its finances and transactions, covering receipts and payments and its assets and liabilities; the books must be kept at the registered office or another place in Uganda as the executive committee may decide, and be open at reasonable times to inspection by members of the executive committee.

The treasurer must prepare and send an annual balance sheet (at least once a year, not more than fifteen months apart) to the annual general meeting; the balance sheet must be audited by an auditor appointed from a Registrar-approved list; auditors have access to books; obstructing an auditor is an offence.

When a treasurer or an officer responsible for accounts resigns or vacates office, or when required by members' resolution or the Registrar, they must provide a true statement of all money received and paid while in office; that statement must list balances and entrusted property; accounts on vacation must be audited; after audit the treasurer/officer must immediately hand over balances and property to the trustees.

Registered organisations must annually submit audited balance sheets and auditor’s reports to the Registrar by the prescribed date; the Registrar must require show-cause and may refer non-compliance to the Industrial Court after 14 days; willfully falsifying documents delivered under this section is an offence.

The books of accounts and the members list of a registered organisation must be open for inspection by officers/trustees/members as provided in the organisation's rules, and may be inspected by the Registrar or a person authorised by the Registrar at any reasonable time.

It is an offence for a person to oppose, obstruct or otherwise hinder the Registrar or anyone authorised by the Registrar while carrying out an inspection under section 51; the Registrar may refer the matter to the Industrial Court.

The Registrar may require officers of a registered organisation to produce detailed accounts if there is reasonable cause to suspect irregularity, may refer non-compliance to the Industrial Court, may prohibit persons from controlling funds for up to four weeks if intending misuse is suspected, and an aggrieved person may appeal to the Industrial Court within seven days.

A person who commits an offence under this Act, or contravenes any provision for which no special penalty is provided, is liable on conviction to a fine not exceeding ninety six currency points or imprisonment for a term not exceeding four years, or both.

A minor member may nominate (in writing, delivered or sent to the registered office) a relative to receive monies payable on the minor's death; the minor may revoke or vary the nomination in writing; on satisfactory proof of the minor's death a registered organisation must pay the nominee benefits due under its rules.

A document required to be served on a registered organisation is deemed duly served if posted to its registered office postal address or if served personally on any member of the organisation's executive committee.

The Registrar must notify in the Gazette when specified events about registered organisations occur.

The Minister may make regulations by statutory instrument to carry out or give effect to this Act.

The Minister may amend Schedule 1 by statutory instrument with Cabinet approval, and may amend Schedule 2 by statutory instrument.

The Trade Unions Act is repealed.

Statutory instruments made under the repealed Trade Unions Act that are in force at commencement remain in force unless inconsistent, until revoked or replaced; proceedings pending under the repealed Act may be continued and completed under this Act.

Certain existing trade union organisations and registered labour unions are preserved and treated as registered under the new Act; affiliate members may choose to remain or leave after commencement.

The Companies Act and the Co-operative Societies Act do not apply to the National Organisation of Trade Unions, Federations of Labour Unions, or any Labour Unions; any registration of a labour union under either Act is void.