Section 12C of the Labour Act (Chapter 28:01) as amended by Section 5 of the Labour Amendment Act Number 5 of 2015 was revisited and amended by Labour Amendment Act Number 11 of 2023. The amendment brought a raft of sweeping changes to the laws governing the retrenchment process in Zimbabwe.
Under the new law an employer who intends to retrench one or more employees or has negotiated with his or her employees a retrenchment package better than minimum retrenchment package is required to do the following;
- Give 14 days’ written notice to the Works Council and to the NEC if most employees agree or if there is no Works Council.
- The notice or agreed retrenchment package must also be served to the Retrenchment Board.
- In addition, in the absence of an agreed retrenchment package, together with the notice of intention to retrench, the employer will be required to provide the Works Council or employment council and the Retrenchment Board, details of every employee intended to be retrenched and the reasons for the proposed retrenchment.
- Within 14 days from the date of the retrenchment, the employer is required to notify the retrenchment board of the retrenchment and the particulars of any agreed retrenchment package.
- The Retrenchment Board must issue a notification certificate, which signifies its satisfaction that the agreed package is better than the minimum retrenchment package, within 14 days from the date when the employer notifies it (the retrenchment board) of its intention to retrench.
- The employer and employee/s, after the notice to retrench, may discuss a package better than the minimum package. If an agreement for an agreed package is made, it must be signed for. If an agreement is secured, including the date or dates when the agreed package is to be paid to the employees, the agreed retrenchment package is supposed to be paid to the employees on the agreed day or days. The agreed package must be notified to the retrenchment board no later than the end of the notice period or within seven days after the expiry of the notice.
- If the employer and employees do not agree on an agreed retrenchment package, the employer must inform the retrenchment board within 14 days from the date when the employee/s is retrenched of the fact that the minimum retrenchment package is being or is to be paid and the details of every retrenched employee. Within those 14 days of being notified of the retrenchment, the Retrenchment Board is required to issue a notification certificate(i.e. a certificate to the effect that the Board is satisfied that the agreed package is better than the minimum retrenchment package). It is now a requirement for the retrenchment board to issue a certificate of notification on its retrenchment notice board or virtually for seven consecutive days.
- Further, if there is a question in any judicial or other proceedings whether the Retrenchment Board issued a notification certificate to the employer, an affidavit by the employer to the effect that he or she notified the retrenchment board shall be a prima facie proof of such.
- If the employer fails to notify the retrenchment board of the minimum or agreed package on the 21st day after the employee or employees are retrenched, the employees or their representative may enforce payment of their package as per provisions of s12C (6 and (7) of Act.
- The employer will be given an opportunity to be heard before the retrenchment board. If no representations are received, or the retrenchment board is satisfied that compliance has not been made, the Retrenchment board must issue a certificate of non-compliance and state the extent of non-compliance.
The contents of this article are for general information purposes only and do not constitute our legal or professional advice. We accept no responsibility for any loss or damage of whatsoever nature which may arise from reliance on any of the information published herein.
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