The Government has inaugurated a Reform Taskforce on Workers’ Compensation to review the existing legal and institutional framework and develop proposals to address the weaknesses in the current system.
Uganda is moving to overhaul its workers’ compensation system amid concerns that delays in settling claims, employer insolvency and weak enforcement that are leaving employees injured at work and families of deceased workers without adequate financial protection.
The proposed reforms could include the establishment of a National Workers’ Compensation Fund to pool resources, guarantee timely payment of benefits and provide a more reliable and equitable compensation system.
The Government has inaugurated a Reform Taskforce on Workers’ Compensation to review the existing legal and institutional framework and develop proposals to address the weaknesses in the current system.
The taskforce was commissioned by the Minister of State for Labour, Employment and Industrial Relations, Simon Mulongo, at the Ministry of Gender, Labour and Social Development headquarters on Wednesday.
Mulongo said the existing Workers Compensation Act (Chapter 233), which places the primary responsibility on individual employers to insure against workplace injuries, had left workers vulnerable when employers fail to meet their obligations.
He said delayed claims, employer insolvency and inconsistent enforcement often deny injured employees and families of deceased workers timely financial support.
“The risks arising from productive employment must not be transferred disproportionately to injured workers and their families,” Mulongo said.
He added that Uganda’s economic transformation under President Yoweri Museveni required social protection institutions to keep pace with industrial growth and ensure that workers were not left exposed to the risks associated with productive employment.
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Mulongo noted that Uganda is also bound by International Labour Organisation Convention No. 17 on Workmen’s Compensation (Accidents), 1925, which provides for periodic payments in cases of permanent incapacity or death and safeguards compensation benefits when an employer or insurer becomes insolvent.
He observed that having a legal framework was not enough unless workers and their families could practically access the benefits guaranteed under the law.
The taskforce brings together representatives from the ministries of Finance, Health, Public Service and Local Government, the Attorney General’s Chambers, the National Planning Authority, the Uganda Retirement Benefits Regulatory Authority and workers’ representatives.
It has been tasked with assessing weaknesses in the existing compensation system and developing proposals on financing options, benefit packages, governance structures and possible legislative amendments.
The committee will also undertake actuarial assessments to establish the financial sustainability of the proposed reforms and prepare draft legislative proposals to guide government decision-making.
Mulongo cited experiences from other African countries, including Tanzania, South Africa and Zambia, which have established dedicated frameworks for compensating workers injured or disabled in the course of employment.
Tanzania’s Workers Compensation Fund, established under the 2008 law and operational since 2015, pools contributions to finance medical treatment, disability benefits and rehabilitation services.
South Africa’s compensation framework also integrates financial compensation with medical care and support for workers returning to employment.
However, Mulongo cautioned against simply importing foreign models, saying Uganda needed a system adapted to its economic realities and capable of serving workers across all regions.
He said any proposed national fund must be actuarially sound, properly governed and administratively accessible to ensure that workers receive their benefits without unnecessary delays.
The minister also emphasised that compensation must complement, rather than replace, efforts to prevent workplace injuries.
“We should never allow compensation to become a substitute for workplace safety,” he said.
He urged the taskforce to address both existing and emerging occupational hazards, including heat exposure and risks associated with new production technologies, as part of efforts to reduce preventable workplace injuries.
The committee is expected to submit evidence-based recommendations to guide Cabinet decisions on reforming Uganda’s workers’ compensation system, with the ultimate aim of ensuring that injured workers receive fair and timely compensation while their families remain financially secure.
