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