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COVID-19 CRISIS: Concern as more companies, hotels lay off staff, cut salaries

CONRAD AHABWE | PML Daily Senior CorrespondentbyCONRAD AHABWE | PML Daily Senior Correspondent
April 16, 2020
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Serena Hotels sent most of their employees home over Coronavirus disruptions (PHOTO/File).

KAMPALA – Kampala Serena and Sheraton hotels are the latest to join the growing number of companies and organizations laying off staff following the extension of the lockdown over coronavirus.

According to notices from both hotels, contract staff will be laid off while those on permanent terms will receive either half pay or no pay at all.

Serena hotel Kampala said in a notice that “should business position not have improved, all staff will be sent on unpaid leave from June 2020 until further notice.”

Serena will also not renew contracts for all the employees whose contracts expired on March 31, 2020. Already Serena Hotel in Kigo is locked.

On the other hand, Sheraton Kampala said “should business position not have improved, all staff will be sent on unpaid leave from 1st May 2020 until further notice.”

On Wednesday, an internal communication from Verma Company Limited stated that employment contract obligations had been suspended.

“Management has resolved to suspend all contract obligations of the company and your work obligations as stated in your respective employments contracts effective April 14. However, you will still be entitled to medical benefits as per your respective medical insurance covers,” the communication reads in part.
Mr Sanjay Verma, the company’s executive director, said the suspension will end when government lifts the quarantine or announces that the situation is safe for reopening and operation of business.

Ndejje University secretary Elijah Kiyingi has informed all staff that due to the closure of the University amid the coronavirus outbreak, there is a likelihood that salaries for April and the following months will not be available since the university derives its revenue from students who are now at home.

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