The Industrial Court was established under the Labour Disputes (Arbitration and Settlement) Act, 2006 Cap 224, Laws of Uganda, and section 7.  2006.

The Act was assentenced to on 24th May 2006; and commenced on the 07th August 2006 via a Ministerial statutory instrument.

The Court's jurisdiction ambit are labour disputes referred to it by a party to a dispute where a labour officer has failed to dispose of the dispute within 08 weeks under the court's regulations as requested under the act, disputes referred by the Labour officer at the request of the party or on the officer's own volition when is unable to resolve the dispute; or by responsible Minister on notice of an intended withdrawal of labour within 05 days. Appeals can also be filed against labour officers' decision under the Employment Act. The Court has no original jurisdiction over Labour disputes.