In Zimbabwe, the notice periods for employment termination have been subject to legal debates and legislative changes. The complexity of the legal landscape surrounding termination by notice is due to the interplay between the Labour Act (Chapter 28:01) and a series of court rulings.

Current Status of Termination by Notice

Section 12(4) of the Labour Act (Chapter 28:01) outlines the minimum notice periods for employers and employees. However, the enforceability of these provisions has been questioned due to certain court rulings.

Minimum Notice Periods (as per Labour Act):

• Three months for contracts of two years or more
• Two months for contracts of one year or more but less than two years
• One month for contracts of six months or more but less than one year
• Two weeks for contracts of three months or more but less than six months
• One day for contracts less than three months (casual work)

Court Rulings

The Supreme Court case of Don Nyamande v Zuva Petroleum (Private) Limited SC43/15 seemed to reinstate the employer's right to terminate with notice. However, subsequent interpretations and the absence of legislative amendments have created uncertainty.

Alternatives to Termination by Notice

Mutual Agreement

Both parties can agree to end the employment relationship with a mutually decided notice period.

Summary Dismissal for Cause

Employers can dismiss employees without notice for proven cases of gross misconduct as outlined in the National Employment Code of Conduct (SI 15 of 2006).

Retrenchment

In cases of redundancy, specific procedures for consultation are outlined in the Labour Act.

It is highly recommended to exercise caution and seek legal counsel when navigating termination procedures in Zimbabwe, particularly when dealing with termination by notice. A clear understanding of the specific employment contract and relevant case law is crucial.

Severance pay in Zimbabwe is not a universal requirement but is applicable under specific circumstances. The primary legal source is the Labour Act (Chapter 28:01), specifically the section on Retrenchment (Section 12C).

Applicability of Severance Pay

Severance pay applies to employees dismissed due to a reduction in the workforce or the restructuring of an organization. This is a form of termination of employment for economic or operational reasons.

Non-Entitlement to Severance Pay

Employees dismissed for gross misconduct, as defined in the National Employment Code of Conduct (SI 15 of 2006), are not entitled to severance pay. Employees on fixed-term contracts whose contracts expire naturally are generally not entitled to severance pay. Employees offered alternative positions suitable to their skills and experience within the organization or its subsidiaries, and who refuse the offer, are not eligible for severance pay.

Retrenchment Packages

The Labour Act mandates that a retrenchment package be agreed upon by the employer and works council, or the Retrenchment Board if no agreement is reached. Many organizations use a standard of at least one month's salary for each two years of service. The specific severance amount can be negotiated, taking into account the organization's financial situation and the duration of employment. Some sectors have Collective Bargaining Agreements specifying severance packages.

Severance Pay Disbursement

Severance pay should generally be paid as a lump sum upon the termination of employment.

Additional Factors

While severance packages in Zimbabwe are generally tax-exempt up to a certain threshold, it's advisable to clarify with relevant tax authorities. In the absence of a specific severance pay clause within the employment contract or Collective Bargaining Agreement, employees rely on the Retrenchment provisions within the Labour Act, which may be subject to interpretations by the Retrenchment Board.

In Zimbabwe, the termination of employment is regulated by the Labour Act (Chapter 28:01) and the National Employment Code of Conduct (SI 15 of 2006). The termination process can take several forms, including mutual agreement, termination with notice, summary dismissal (termination for cause), and retrenchment.

Types of Termination

Mutual Agreement: This occurs when the employer and employee mutually agree to terminate the contract. It is advisable to have a written agreement detailing the terms of separation.

Termination with Notice: Either party can terminate the contract by providing notice. The Labour Act outlines minimum notice periods, but recent court rulings have led to uncertainty. It's advisable to rely on the notice period specified in the employment contract.

Summary Dismissal (Termination for Cause): Employers can terminate without notice for gross misconduct as per the National Employment Code of Conduct. Examples include willful disobedience of a lawful order, theft, dishonesty, or fraud, and habitual negligence or incompetence.

Retrenchment: This is termination due to economic or operational restructuring, usually involving a reduction in the workforce.

General Termination Procedures

Notice of Termination:

• With Notice: Where applicable, written notice must be given respecting minimums in the Labour Act or the employment contract.
• Summary Dismissal: No notice is required, but specific reasons must be provided.

Investigation & Hearing (Summary Dismissal): Employers must conduct a fair inquiry into the alleged misconduct and provide the employee an opportunity to present their case.

Documentation: It's important to maintain thorough documentation of the process, including reasons for termination, hearings, and communications with the employee.

Final Payments: The employer must settle all outstanding wages and benefits.

Retrenchment Procedures

Notification to Works Council/ Retrenchment Board: The employer must provide written intent to retrench to the works council (employee representatives) or the Retrenchment Board.

Negotiation of Package: Dialogue with employee representatives to agree on a retrenchment package.

Payment of Agreed Package: Lump-sum payment is generally expected upon termination.

Additional Considerations

Labor Disputes: Employees can file disputes with the Labour Court for wrongful termination.

Employment Contracts: Contracts may outline more specific termination procedures and benefits that take precedence (if more favorable than the Labour Act's provisions).