Rivermate | Zambia flag

Zambia

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Zambia

Notice period

In Zambia, the Employment Code Act No. 3 of 2019 governs notice periods for employment termination. This Act outlines the minimum notice periods that an employer or employee must provide when terminating a contract, unless a longer period is stipulated in the employment contract.

Minimum Notice Periods

The minimum notice periods are as follows:

  • 24 hours: For contracts not exceeding one month.
  • 14 days: For contracts exceeding one month but not exceeding three months.
  • 30 days: For contracts exceeding three months.

Notice in Writing

For contracts exceeding six months, termination notice must be provided in writing. This written notice should clearly state the termination date and reason (if applicable).

Exceptions to Notice Periods

There are exceptions to the notice period requirements. An employer may dismiss an employee without notice for reasons constituting "summary dismissal" as outlined in the Act, such as:

  • Serious misconduct.
  • Incompetence or inefficiency.
  • Wilful neglect of duty.

Payment in Lieu of Notice

Employers can opt to pay the employee an amount equivalent to their wages for the notice period instead of providing actual notice.

Severance pay

Severance pay in Zambia is governed by the Employment Code Act No. 3 of 2019. This legal framework outlines who is entitled to severance pay, who is not, how it is calculated, and when it should be paid.

Entitlement to Severance Pay

Employees on indefinite contracts who have been in continuous service and whose employment is terminated due to redundancy are entitled to severance pay. Similarly, employees on fixed-term contracts are entitled to severance pay if the contract is terminated or it expires, subject to their length of service.

Non-Entitlement to Severance Pay

The Act specifies that casual and temporary employees, employees on probation, and employees dismissed for gross misconduct are not eligible for severance pay.

Calculation of Severance Pay

For employees on indefinite contracts, severance pay is calculated as two months of basic pay for each year of service. For employees on fixed-term contracts with continuous service of 2 years or more, severance pay is pro-rated based on their length of service. It's calculated at a rate of not less than 25% of the employee's basic pay earned during the contract period.

Payment of Severance Pay

Severance pay must be paid upon termination of employment or as agreed in the employment contract. Upon the death of an employee, their severance pay must be paid to their nominated beneficiary or their estate.

It's important to note that specific severance pay terms may be negotiated within employment contracts, but they cannot be less favorable than what the Employment Code Act outlines.

Termination process

Terminating an employment relationship in Zambia must be done in accordance with the provisions of the Employment Code Act No. 3 of 2019 (the Act).

Types of Termination

  • Termination by Mutual Agreement: Both the employer and employee agree to end the employment relationship amicably. A written agreement is recommended to clearly outline the terms of separation.

  • Summary Dismissal (Termination for Cause): An employer can terminate an employee without notice due to gross misconduct. Some examples include willful disobedience of lawful orders, serious incompetence, and habitual neglect of work.

General Termination Procedures

  1. Notice of Termination: Except in cases of summary dismissal, the terminating party must give written notice according to the minimum periods specified in the Act or employment contract.
  2. Opportunity for Explanation: The employee should be given a reasonable opportunity to respond to accusations if the reason for termination is something other than redundancy.
  3. Documentation: Thorough documentation of the termination process, including reasons, relevant notices, and any responses from the employee is crucial.
  4. Final Payments: The employer must make all outstanding payments including wages and accrued benefits.
  5. Certificate of Service: The employer must issue a certificate of service upon termination, providing details of dates of employment and positions held.

Additional Considerations

  • Labor Disputes: Disputes over termination can be filed with the Labor Commissioner's office or the Industrial Relations Court.
  • Employment Contracts: Contracts may specify more detailed termination procedures or benefits, but they cannot be less favorable than what the Act outlines.
Rivermate | A 3d rendering of earth

Hire your employees globally with confidence

We're here to help you on your global hiring journey.