Uganda Christian University (UCU) has suspended staff contracts as the effects of the COVID-19 pandemic continue to bite.
The Mukono-based campus said in a general notice on May 22 the closure of business on March 20, 2020 means that the University cannot collect tuition and other fees unpaid and due from continuing students for the Easter Semester.
“The Univeristy has not made any admission intake or received back our continuing students for the Trinity Semester and as such cannot collect any tuition,” said the campus.
“The situation alluded to has affected the revenue stream and finances of UCU in a significant and adverse way/manner. The management of UCU is now under enormous pressure to devise all ways and means lawful to ensure that UCU remains afloat and/or does not get a situation where is it cash strapped.”
It remains unclear when education institutions will be fully opened to resume business.
This uncertainty has left many businesses to suspend staff contracts as a cost-cutting and survival measure.
In today’s statement, Dr John Senyonyi said,
“The performance of the duties, obligations and responsibilities under the contracts of employment will stand suspended effective June 1, 2020.”
He added: “This means that the affected employees of UCU will not be required to report to work as there will be no work to do, and in many cases, the obligation to report to work and perform their respective duties will not be achievable without extreme difficulty and inconvenience on the employees.”
ChimpReports was unable to establish the number of affected staff on Friday night.
Dr Senyonyi said UCU will, “during the suspension referred to, stand discharged of its obligations to among others provide work to its employees and will not be required to pay any salaries to employees.”
Gender, Labour and Social Development Minister Hon Frank Tumwebaze recently said cash-flow deficiencies occasioned by the current lock-down have made it difficult for most employers to meet employee costs including payment of wages.
“As a result, some employers have made decisions or are contemplating instituting employee-cost reduction measures including pay-cut, layoffs and termination,” he added.
Tumwebaze encouraged employers and employees to negotiate/renegotiate wages before considering layoffs or terminations as the employers will require these employees when normal operations resume.