Firstly you need to install the Plugin;
https://github.com/josegonzalez/cakephp-upload
In the Model of the object you want to allow uploads to(eg User,Product) add;
Model
public $actsAs = array( 'Upload.Upload' => array( 'picture' ) );
View:
In the View Form of this action add;
Form->create('User', array('type' => 'file')); ?> Form->end(__('Submit')); ?>