Hire in Zimbabwe through our Employer of Record (EOR)

An Employer of Record (EOR) is a third-party organization that takes on the legal and administrative responsibilities of employing workers on behalf of another company. This arrangement allows businesses to hire employees in countries where they don't have a legal entity, effectively expanding their global reach without the need to establish a local subsidiary or branch office.

For a country like Zimbabwe, an EOR can play a crucial role in facilitating international business operations and attracting foreign investment. By providing a legal framework for employment, EORs enable companies from around the world to tap into Zimbabwe's talented workforce while ensuring compliance with local labor laws and regulations.

How Does EOR Work?

The EOR model operates through a straightforward process:

1. Client company selection: A business chooses an EOR provider to handle employment matters in Zimbabwe.

2. Employee hiring: The client company identifies and selects candidates for positions in Zimbabwe.

3. Employment contract: The EOR becomes the legal employer of the selected candidates, drafting and signing employment contracts that comply with Zimbabwean labor laws.

4. Payroll and benefits administration: The EOR manages payroll, including salary calculations, tax withholdings, and social security contributions. They also administer employee benefits as required by local regulations.

5. HR support: The EOR provides ongoing human resources support, handling tasks such as leave management, performance reviews, and addressing employee concerns.

6. Compliance management: The EOR ensures ongoing compliance with Zimbabwean employment laws, tax regulations, and other relevant legal requirements.

7. Termination handling: If necessary, the EOR manages the termination process in accordance with local labor laws and regulations.

Benefits of Using an EOR

Employing an EOR in Zimbabwe offers several advantages for international companies:

1. Rapid market entry: EORs allow businesses to quickly establish a presence in Zimbabwe without the need for lengthy company registration processes.

2. Reduced legal risks: By ensuring compliance with local employment laws, EORs minimize the risk of legal issues related to labor regulations.

3. Cost-effectiveness: Using an EOR eliminates the need for setting up a local entity, which can be costly and time-consuming.

4. Flexibility: Companies can easily scale their operations up or down without the complications associated with owning a local subsidiary.

5. Local expertise: EORs provide valuable insights into Zimbabwean labor laws, cultural norms, and business practices.

6. Focus on core business: By outsourcing employment administration, companies can concentrate on their primary business activities and strategic goals.

7. Access to talent: EORs facilitate the hiring of local talent, allowing companies to benefit from Zimbabwe's skilled workforce.

8. Currency management: EORs handle currency conversions and ensure employees are paid in local currency, simplifying financial operations for foreign companies.

9. Simplified exit strategy: If a company decides to leave the Zimbabwean market, an EOR can manage the process more efficiently than if the company had established its own local entity.

By leveraging the services of an EOR, international companies can navigate the complexities of Zimbabwe's labor market with greater ease, fostering economic growth and creating employment opportunities in the country.

Zimbabwe's employment landscape is characterized by a young workforce, significant informal sector participation, and a mix of traditional and emerging industries. The country faces challenges such as high youth unemployment, skills mismatches, and gender disparities in the job market. Despite these obstacles, Zimbabwe's workforce is known for its resilience and adaptability, with a growing emphasis on education and skills development to meet evolving economic needs.

Overview of Labor Laws

Zimbabwe's labor laws are primarily governed by the Labour Act (Chapter 28:01), which provides a comprehensive framework for employment relationships. Key aspects of the labor laws include:

1. Employment contracts: The law recognizes both written and verbal contracts, but written agreements are strongly encouraged.

2. Working hours: Standard working hours are 8 hours per day and 40 hours per week, with provisions for overtime pay.

3. Leave entitlements: Employees are entitled to annual leave, sick leave, and maternity leave as per the law.

4. Termination: The law outlines procedures for fair dismissal and notice periods for termination of employment.

5. Collective bargaining: Workers have the right to form and join trade unions, and engage in collective bargaining.

6. Minimum wage: Sector-specific minimum wages are set through collective bargaining agreements.

7. Social security: Employers and employees contribute to the National Social Security Authority (NSSA) for pension and other benefits.

Cultural Considerations

When operating in Zimbabwe, it's essential to be aware of the following cultural aspects:

1. Respect for hierarchy: Zimbabwean workplaces often have a strong hierarchical structure, with respect for authority and seniority.

2. Indirect communication: Many Zimbabweans prefer indirect communication to maintain harmony and avoid conflict.

3. Importance of relationships: Building personal connections and trust is crucial in professional settings.

4. Community focus: There's often a strong emphasis on community and collective well-being in the workplace.

5. Flexibility for family needs: Employers are generally expected to be understanding of family obligations.

6. Time perception: While punctuality is valued, there may be a more relaxed attitude towards time compared to some Western cultures.

7. Formal address: Using titles and formal modes of address is common, especially with those in senior positions.

Challenges of Direct Hiring

Direct hiring in Zimbabwe can present several challenges for foreign companies:

1. Complex labor laws: Navigating the intricacies of Zimbabwean labor laws can be difficult without local expertise.

2. Skills mismatch: Finding candidates with the right skill set may be challenging due to gaps in the education system and brain drain.

3. Cultural differences: Understanding and adapting to local work culture and communication styles can be challenging for foreign employers.

4. Economic instability: Zimbabwe's economic fluctuations can make long-term workforce planning difficult.

5. Bureaucratic processes: Setting up a legal entity and complying with local regulations can be time-consuming and complex.

6. Currency issues: Managing payroll and financial transactions can be complicated due to Zimbabwe's currency instability.

7. Infrastructure challenges: Unreliable power supply and internet connectivity can affect remote work arrangements and daily operations.

8. Retention challenges: High emigration rates among skilled professionals can make it difficult to retain top talent.

By understanding these aspects of Zimbabwe's employment landscape, companies can better navigate the challenges and opportunities of hiring in the country. Partnering with a global Employer of Record like Rivermate can help overcome many of these obstacles by providing local expertise and compliance support.

Zimbabwe's payroll and tax system is a complex framework that governs the financial responsibilities of both employers and employees. This system is designed to ensure fair contribution to the country's revenue and social welfare programs while maintaining a balance between economic growth and social equity. Understanding the intricacies of this system is crucial for businesses operating in Zimbabwe and for individuals working in the country.

In Zimbabwe, the payroll process involves various deductions and contributions that are mandated by law. These include income tax, social security contributions, and other levies that are essential for the functioning of the country's social and economic infrastructure. The Zimbabwe Revenue Authority (ZIMRA) plays a central role in overseeing and enforcing these tax obligations.

Employer Contributions

Employers in Zimbabwe have several financial responsibilities when it comes to payroll and taxes. These contributions are crucial for maintaining the country's social security system and funding various government initiatives.

One of the primary obligations for employers is contributing to the National Social Security Authority (NSSA). Employers are required to contribute 3.5% of an employee's earnings, up to a specified ceiling, to this pension scheme. This contribution is matched by an equal deduction from the employee's salary, ensuring a shared responsibility for social security.

Another significant contribution is the Standards Development Fund (SDF). Employers are generally required to contribute 0.5% of their quarterly gross wage bill to this fund. The SDF is designed to support the development and maintenance of national standards across various industries.

Employers also play a crucial role in the collection and remittance of taxes on behalf of their employees. While not a direct contribution, employers are responsible for accurately calculating, deducting, and remitting the Pay As You Earn (PAYE) tax and AIDS Levy from their employees' salaries to ZIMRA.

It's important to note that employers must register with ZIMRA for tax purposes. This registration is a fundamental step in fulfilling their tax responsibilities and ensuring compliance with Zimbabwe's tax laws.

Employee Contributions

Employees in Zimbabwe are also required to make several contributions from their earnings, which are typically deducted directly from their salaries by their employers.

The most significant of these is the Pay As You Earn (PAYE) tax. Zimbabwe operates a progressive income tax system, meaning that the tax rate increases as an individual's income increases. The exact rates and tax brackets are set by ZIMRA and are subject to change, so it's important for employees to stay informed about the current rates.

In addition to PAYE, employees are required to contribute to the National Social Security Authority (NSSA). As mentioned earlier, this contribution is set at 3.5% of the employee's gross salary, matching the employer's contribution.

Another deduction that employees need to be aware of is the AIDS Levy. This is calculated at 3% of an employee's taxable income and is used to fund HIV/AIDS programs in the country.

Employees may also choose to make contributions to approved pension funds. These contributions are generally tax-deductible up to certain limits, providing a potential tax benefit for employees who participate in these schemes.

It's worth noting that certain benefits provided by employers, such as housing, company cars, or school fees, may be considered taxable income for the employee. This means that the value of these benefits could potentially increase an employee's taxable income and, consequently, their tax liability.

Understanding these contributions is crucial for employees to effectively manage their finances and plan for their future. It's always advisable for employees to stay informed about any changes in tax laws or contribution rates that might affect their take-home pay.

Zimbabwe's labor laws mandate a comprehensive set of employee benefits, ensuring workers receive essential protections and support. As an Employer of Record (EOR), Rivermate expertly manages these benefits, ensuring full compliance with local regulations while alleviating the administrative burden for companies. Beyond the mandatory benefits, many employers in Zimbabwe offer additional perks to attract and retain top talent. Let's explore both the mandatory and optional benefits available to employees in Zimbabwe.

Mandatory Benefits

• Annual Leave: 30 days of paid leave after one year of continuous employment
• Public Holidays: Paid time off for all national public holidays
• Sick Leave: Up to 90 days with full pay, with the possibility of an additional 90 days at half pay
• Maternity Leave: 98 days of fully paid leave for female employees
• Special Leave: Provisions for compassionate leave and urgent personal matters
• National Social Security Authority (NSSA): Mandatory pension scheme for all employees
• Workers Compensation Insurance Fund (WCIF): Financial assistance for work-related injuries or illnesses
• Zimbabwe Manpower Development Fund (ZIMDEF): Supports skills development programs
• Standards Development Fund (SDF): Funds workplace safety and health initiatives
• Notice Period: Required for both employers and employees before termination
• Severance Pay: May be applicable in certain termination scenarios

Optional Benefits

• Medical Aid: Group health insurance schemes for employees and dependents
• Wellness Programs: On-site wellness initiatives or gym memberships
• Health Cash Plans: Reimbursement for specific healthcare expenses
• Pension Top-Up: Additional employer contributions to employee pensions
• Performance Bonuses: Incentives for high-performing employees
• Car Allowances: Company cars or transportation allowances
• Housing Allowances: Financial assistance for housing costs
• Flexible Work Arrangements: Remote work options or compressed workweeks
• Additional Paid Time Off: Personal or volunteer leave days
• Childcare Assistance: Subsidies or on-site daycare facilities
• Employee Discounts: Reduced prices on company products or services
• Life Insurance: Group life insurance plans
• Training and Development: Professional growth opportunities and educational sponsorships
• Travel Allowances: Compensation for work-related travel expenses

By offering a mix of mandatory and optional benefits, employers in Zimbabwe can create attractive compensation packages that support employee well-being and foster a positive work environment. As an EOR, Rivermate ensures seamless management of these benefits, allowing companies to focus on their core business while providing their employees with comprehensive support.

The process of termination and offboarding in Zimbabwe is governed by specific legal requirements and best practices to ensure a smooth transition for both employers and employees. Understanding these procedures is crucial for companies operating in the country to maintain compliance and protect their interests.

Legal Framework for Termination

In Zimbabwe, the Labour Act [Chapter 28:01] provides the foundation for employment relationships, including the grounds for lawful dismissal. Employers must adhere to these regulations when considering termination. The main reasons for dismissal include:

1. Misconduct
2. Incapacity due to ill-health or poor performance
3. Retrenchment
4. Mutual agreement
5. Reaching retirement age

It's important to note that misconduct refers to serious violations of the employment contract or actions that significantly harm the employer's business. Incapacity can be attributed to extended medical reasons or consistent failure to meet performance standards. Retrenchment occurs when there's a need to reduce the workforce due to economic or operational reasons.

Notice Requirements

The Labour Act stipulates minimum notice periods for termination, which vary based on the length of employment:

• Contracts of two years or more: Three months' notice
• Contracts between one and two years: Two months' notice
• Contracts between six months and one year: One month's notice
• Contracts between three and six months: Two weeks' notice
• Contracts less than three months: Notice period equal to the contract duration

It's worth noting that employment contracts or collective bargaining agreements may specify longer notice periods, which must be observed.

Severance Pay

When employees are dismissed due to retrenchment, they are entitled to severance pay. The calculation of severance pay is often based on the length of service. While the Labour Act and Retrenchment Regulations provide guidance on severance pay, specific entitlements may also be outlined in relevant collective bargaining agreements.

Offboarding Process

To ensure a smooth transition during termination, employers should follow a structured offboarding process:

1. Communicate the decision clearly and professionally
2. Provide written notice as per legal requirements
3. Conduct an exit interview to gather feedback
4. Retrieve company property and revoke access to systems
5. Process final payments, including severance if applicable
6. Provide necessary documentation, such as certificates of service
7. Inform relevant departments (HR, IT, Finance) about the employee's departure

By following these steps and adhering to the legal requirements, companies can navigate the termination and offboarding process in Zimbabwe effectively, minimizing potential disputes and ensuring a professional conclusion to the employment relationship.

Zimbabwe, like many countries, has specific regulations for foreign nationals seeking employment within its borders. Understanding the visa and work permit requirements is crucial for both employers and international workers looking to navigate the Zimbabwean labor market.

Visa Requirements

Foreign workers typically need to obtain a visa before entering Zimbabwe. The type of visa required depends on the purpose and duration of the stay:

• Business Visa: For short-term business-related activities, such as attending meetings or conferences.
• Temporary Employment Visa: For those intending to work in Zimbabwe for a limited period.

Work Permit Process

To legally work in Zimbabwe, foreign nationals must obtain a work permit. The process generally involves the following steps:

1. Employer Sponsorship: A local employer must sponsor the work permit application.

2. Application Submission: The employer submits the work permit application to the Department of Immigration.

3. Documentation: Required documents typically include:

   • Completed application form
   • Valid passport
   • Educational qualifications
   • Proof of relevant work experience
   • Police clearance certificate
   • Job offer letter

4. Processing Time: Work permit processing can take several weeks to a few months.

5. Permit Issuance: Once approved, the work permit is issued, allowing the foreign national to legally work in Zimbabwe.

Important Considerations

• Skills Assessment: Zimbabwe prioritizes hiring local talent. Employers may need to demonstrate that the foreign worker possesses skills unavailable locally.

• Permit Duration: Work permits are usually valid for up to two years and may be renewable.

• Compliance: Both employers and employees must ensure ongoing compliance with Zimbabwean labor laws and immigration regulations.

Understanding and adhering to Zimbabwe's visa and work permit requirements is essential for a smooth transition into the country's workforce. As regulations may change, it's advisable to consult with the Zimbabwean Department of Immigration or a qualified immigration specialist for the most up-to-date information.