Learn about the legal processes for employee termination and severance in Zambia
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.
The minimum notice periods are as follows:
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).
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:
Employers can opt to pay the employee an amount equivalent to their wages for the notice period instead of providing actual notice.
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.
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.
The Act specifies that casual and temporary employees, employees on probation, and employees dismissed for gross misconduct are not eligible for 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.
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.
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).
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.
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