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Company Suspends All Staff after Extension of Lockdown Days

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“It is your knowledge that the company closed operations since March 26, 2020, which means it is increasingly becoming impossible for the company to shoulder expenses including salaries,” reads the notice.
Verma sells motorcycles
Verma Company Limited, which deals in the sale of motorcycles and their spare parts has suspended up to 100 employees because of the extended lock down.  

In a notice issued to staff on Tuesday evening, the Lugogo based company noted that it had become impossible to shoulder staff salaries. 

“It is your knowledge that the company closed operations since March 26, 2020, which means it is increasingly becoming impossible for the company to shoulder expenses including salaries,” reads the notice.

The company indicates on its website it employs 100 people. President Yoweri Museveni extended the lockdown for another 21 days, which started today to May 5th, 2020. It came hours after the expiry of the first lock down announced on March 30th, 2020. 

The lock down to reign in the spread of corona virus has meant an immediate stop in the cash flows of most businesses. This means many will struggle to pay salaries, pension and other obligations like water and electricity. It is expected that more companies will either layoff or cut staff pay in order to go through the Covid-19 crisis. 

The country has so far confirmed 55 cases of the corona novel virus. The notice says it has “suspended all contract obligations as stated in your respective employment contracts effective April 14, 2020 until such a time when government lifts quarantine or announce the situation is re-opening…” 

Verma serves organisations like World Vision, Mogo Finance, Tugende, and Asaak. These help people buy Boda bodas on credit.

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