This study will aim at establishing the relationship between reward system and employee turnover. The objectives of the study were to investigate the different types of reward systems. determinants of the reward systems and the causes of employee turnover. An exploratory survey study design was used; quantitative method was employed in the study. The data was collected using self administered questionnaires which included reward system scale. cause of employee turnover scale, relationship between reward system and employee turnover which was corded into frequencies, percentages and tables were employed using spss. The findings indicate that Lugazi turnover offers different types of rewards, rewards are not based on employees' knowledge, skills, and lack of career advancement opportunities has led to high employee turnover. The findings concluded that Lugazi town council poorly remunerates its employees, rewards are not based on merit and there are various factors that lead to employee turnover. The study recommended that Lugazi town council should establish an efficient and effective system of reward and ensure that rewards are based on merit. I NAKALULE ALLEN here by declare that to the best of my knowledge this research report is my original work and has never been submitted to any university for any award and acknowledgements have been made