Employer of Record (EOR) services: Hiring employees in Uganda

Hire employees in Uganda with an EOR’s assistance.

A culturally rich nation with a growing, skilled workforce, Uganda is one of the leading economies in East Africa. Known for its strategic location and developing infrastructure, Uganda plays an active role in regional trade and economic development.

With a competitive business environment and favorable conditions for various sectors, Uganda is an appealing destination for international businesses.

If you’re planning to expand your business’s presence in Uganda, an Employer of Record or EOR can help you get started swiftly. This allows you to avoid the complexities of setting up a local entity or handling HR functions on your own.

An Employer of Record serves as the legal employer for your workforce in Uganda, while you retain control over daily operations and staff management.

Why choose an EOR for hiring in Uganda?

Startups, small businesses, and medium-sized enterprises often find themselves needing to undertake a global expansion but may lack the in-house expertise and resources to navigate such a shift efficiently. These and other employers can benefit from partnering with an EOR to make new hires in Uganda. An EOR enables you to:

• Hire and onboard employees quickly, without the need to establish a formal business entity in a new country.
• Reduce the risk associated with regulatory compliance, as the EOR takes on the responsibility of employing staff on your behalf.
• Outsource payroll, tax withholding, and benefits management.
• Ease the administrative load related to HR, compliance, and payroll.

As the legal employer for your Uganda-based workforce, an EOR handles the onboarding of local employees, managing payroll, and overseeing benefits and taxes—all while complying with local employment laws and aligning with your company’s practices.

In short, by allowing an EOR to manage core HR and compliance tasks, you can concentrate on expanding your business in Uganda.

Choosing between an EOR and PEO in Uganda

To enter any new market quickly, including Uganda, there are two main options: an EOR or a PEO (Professional Employer Organization). The best approach depends on understanding the key differences between an EOR and PEO.

An EOR is the obvious choice for any employer aiming to transfer all compliance risk related to employment law in Uganda.

How to select the right EOR provider in Uganda

A few important questions should guide your decision when choosing which EOR is best for your needs. How well does the EOR handle compliance with employment law in Uganda compared to other providers? What is the quality of the EOR’s support? And can the EOR effectively cover Uganda? Not all EORs can.

It is essential to carefully evaluate several factors when selecting the right EOR. Making the wrong choice can lead to compliance problems, unexpected expenses, and a negative experience for your employees. Here’s what to look for:

• Legal compliance. The right EOR should possess comprehensive knowledge of Uganda’s labor laws, worker rights, tax regulations, and local benefit structures. Check for a solid track record and ask about their experience managing industry-specific situations.
• Customer service: Does the EOR provide 24-7 support and assign dedicated account managers for clients? Multiplier offers continuous, human-first support (no bots) and has dedicated managers for each account.
• Transparent pricing: Some EORs may have attractive costs at the outset but come with hidden charges or unclear pricing models. Ensure you thoroughly understand the costs associated with an EOR before committing.
• Total cost of ownership: It’s not just about choosing the cheapest option. Low-cost solutions can sometimes lead to higher expenses when quality or service is lacking. Make sure you are investing in an EOR that fits your budget without sacrificing quality or reliability.

How EOR services work in Uganda

Step 1: Send that contract over

Once you’ve identified a really good candidate—and the perfect EOR—send a locally compliant employment contract. Thanks to the automation of essential HR functions, Multiplier can create contracts that fully adhere to Ugandan labor law in under five minutes. You’ll be able to customize these contracts for employment terms such as job responsibilities, working hours, salary, and termination conditions. Your EOR will securely send the contract, once finalized, and manage the signing process.

Step 2: Enhance compensation with competitive benefits

Thinking of including a competitive benefits package? By doing so, you’ll attract the best talent. Instead of navigating local providers on your own, your EOR will simplify the process by offering options that align with local practices and preferences.

Step 3: Get all your documentation in order

Next, it’s essential to gather the new hire’s tax and banking information. If you’re working with an EOR like Multiplier, this step is handled seamlessly to set up payroll. Multiplier manages all the necessary documentation, making the process smooth and hassle-free.
While onboarding employee in Uganda might seem challenging, partnering with an EOR makes it straightforward.

Step 4: Run payroll for employees based in Uganda

Running payroll in Uganda can be complex, with specific tax rates and social contributions to consider. Employing through an EOR like Multiplier ensures accurate and timely salary disbursements while handling all local taxes, contributions, and deductions. With Multiplier’s global payroll solution, you can manage payroll for your entire international team from one centralized platform, avoiding the need to work with multiple local vendors.

Step 5: Manage your employees and leave HR compliance to the EOR

Multiplier takes care of all post-hire onboarding processes, ensuring new employees in Uganda receive their first paycheck—and every subsequent one—on time and calculated correctly, including all benefits, taxes, and social contributions. If an employee in Uganda needs to be terminated or leaves voluntarily, Multiplier ensures that all compliance aspects are handled appropriately.

Moving forward with Multiplier EOR in Uganda

An EOR is an excellent option for any business that needs to expand quickly into Uganda. The operational efficiency, flexibility, and reduced risk that come with using an EOR make it an invaluable choice.

An end-to-end solution for building your team in Uganda, Multiplier’s Employer of Record (EOR) services are robust. Outsourcing key HR functions, you can hire talent without the complexity of setting up a local entity yourself.

Multiplier supports seamless hiring, onboarding, and employee management. You benefit from locally compliant contracts, managed payroll and taxes, and a variety of customizable benefits designed to meet local standards.

In short, a positive employee experience and no compliance frustrations.

Book a demo to see how Multiplier makes HR and compliance in Uganda simple and effective.