Following the announcement of the Final Investment Decision on 1 February 2022, stakeholders in the Oil and Gas industry are preparing to participate in the various project activities...
As some of the skills needed for the sector may not be available in Uganda, hiring of non-Ugandans will be necessary. Being able to hire the right people for the job and to quickly move resources across borders to meet contractual obligations is top on every investor’s agenda. Even more important is ensuring that employers comply with all the labour laws for employing the foreign workers, including obtaining work permits for them to legally work in Uganda. In doing so, it is important to comply with the requirements of Uganda’s immigration laws to avoid any project delays.
To ensure that Ugandan individuals and businesses get the most value out of Uganda’s oil industry, the government introduced specific immigration requirements in the National Content laws. Some of the key aspects of the requirements are explained below as well as best practices for a good immigration compliance.
Recommendation by the Petroleum Authority of Uganda (PAU)
Employers in the oil and gas sector who would like to employ expatriates are required to go through an evaluation process by Petroleum Authority of Uganda (PAU) before employing foreign nationals. This evaluation is conducted for each individual application although the overall business resourcing requirements may be considered. PAU carries out the evaluation at no cost.
The employer must demonstrate to PAU that they were unable to find a Ugandan to fill that position and that the expatriate possesses expertise and skills that cannot be provided by Ugandans. They must also present a plan for training Ugandans, and for the transfer of knowledge and technology to Uganda. This is aimed at ensuring that Ugandans are able not only to participate in the various project activities but to also sustainably take on the roles performed by expatriates.
In determining whether or not to grant the recommendation, PAU will review the information provided, including the job titles, academic transcripts and curriculum vitae and any other information PAU may request for.
Once the employer receives the recommendation from PAU, they will be required to follow the usual process for applying for a work permit from the Directorate of Citizenship and Immigration Control (DCIC). The request for a recommendation may be denied by PAU in certain cases. The reasons for the denial could range from failure to demonstrate the special expertise and skills of the expatriate especially where the position does not appear to be technical and could have been performed by a Ugandan.
It should be noted that being granted a recommendation from PAU does not automatically qualify the expatriate for a work permit, but usually this advance evaluation by PAU provides a good basis for a favourable outcome from DCIC.
Timing
As employees are a critical asset for the execution of the contractual obligations and regulatory requirements, the work permit process should be managed as a key strategic function. For example, once the contractual negotiations have been concluded, the work permit should be initiated early before the date of commencement of work. Mobilising the required documentation in advance also saves on preparation time.
Resource mapping
The recruitment process should be managed proactively. Employers should assess their resourcing needs periodically and develop a matrix for the different job roles. The specific work to be performed in Uganda will inform the skills required and the job descriptions to be used in the recruitment process.
Sourcing methodology
It is advisable to make use of the National Oil and Gas Talent Register (NOGTR) kept by PAU during the recruitment process.
Under the national content requirements, it is expected that vacancies are advertised widely, such as by publication in a widely circulated newspaper, on the company’s website or on the NOGTR.
Following interviews, employers should prepare a detailed report including the details of the applicants, the vacancies applied for and the outcome of the interviews.
Training and succession plan
A key aspect of national content is to ensure that skills are transferred to Ugandans to enable participation in the sector in the long term. One of the ways PAU does this is by continually evaluating the national content plans to confirm that skills are being transferred and that succession plans are in place and are being implemented. Therefore, employers must prepare a comprehensive training and succession plan and regularly update it.
Conclusion
National content within the oil and gas industry is a key aspect of national importance. The government is keen to ensure that Ugandan citizens and businesses get the best value from the sector. The requirements above necessitate a robust communication and coordination system among the parties, including the employer, the employee and relevant government agencies. Having the right human resource and immigration advisor will ensure compliance with all the applicable laws and practices and reduce inefficiencies.
By: CPA Fredricks Owora, Managing Partner- TGS Osillo- Uganda