Labour Law & Business Law Zimbabwe - Aquamor

12/06/2025

A Note on ‘Strike-breakers’
The on-going demonstrations, and job boycott (a strike by another name), by University of Zimbabwe Lecturers has raised an interesting point in relation to the UZ authorities’ plan to recruit temporary replacements, a classic tactic to ‘break’ a strike.

The striking Lecturers denounced this attempt to render the strike ineffectual by employing temporaries, (sometimes pejoratively referred to as ‘scabs’ or ‘bootlickers’).

Our interest here is in the strikers’ reliance on sub-section (5) of section 108 (‘Protection of persons engaged in Lawful Collective Job Action’) of the Labour Act to seek to invalidate the employer’s strike-breaking tactic.

It seems to me that section 108(5) is actually irrelevant, in that it relates to a Lock-out by the Employer (to put pressure on employees during negotiations), rather than to a Strike by Employees.

Section 108(5) stipulates –
“An Employer may not employ any person for the purpose of performing the work of an Employee
who is Locked out”

In this instance, the Employer did not lock-out the Employees; they ‘walked off the job’.

Footnote
While all occupations and professions are important, it surely says something not complimentary about the state of the nation that, as our final items in this Bulletin reveal, last year the lowest grade employees in the three industries we report earned more than junior lecturers at the University of Zimbabwe – in some cases, considerably more.

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28/05/2025

BUSINESS INFORMATION ZIMBABWE – ‘BIZ’
Updates on Business and Commercial Law in Zimbabwe

THIRD BIZ Bulletin May 2025
Written 27th May 2025 by Howard Dean

One way or another – BUT NOT IMMEDIATELY – every Motorist in Zimbabwe will be affected by this.
For that reason, for this Bulletin only, we are lifting our usual prohibition against forwarding to non-Subscribers.
Please feel free to forward this to anyone you think might find it useful.

Insuring & Licensing a Vehicle will soon require you first buy a current Vehicle Radio Licence
UNLESS you swear a Declaration to the effect that there is no radio in the vehicle (see page 2)

The Broadcasting Services Amendment Act (Act No. 2 of 2025) was published with the Government Gazette on Friday 23rd May 2025. Section 1(2) states, “This Act shall come into operation on a date to be fixed by the President by Statutory Instrument.” So there is no obligation as yet to buy a car radio licence before you can insure and licence your vehicle.

Our interest is in section 15 of the Act, which has inserted a new sub-section (4) into section 38B (‘Licensing of Listeners’) of the principal Broadcasting Services Act (Chapter 2:06 of the Statute Law).

Section 38B(4) now reads as follows –
“(4) The Zimbabwe National Road Administration (ZINARA) and every Motor Insurance Company shall only issue a Motor Vehicle Licence and Motor Insurance Policy respectively to individuals who either hold a current Radio Licence ** issued by the Zimbabwe Broadcasting Corporation or a valid Exemption Certificate from ZBC, unless the vehicle to be insured is not equipped with a radio receiver :
Provided the licence applicant shall sign a Declaration as specified in the Eighth Schedule.”

** Although the amendment does not explicitly say so, this is a Vehicle radio licence, obviously.

Again, the amendment does not say so, but from the wording – and the absence of any reference to a ZBC official, or date-stamp – I think one may assume you can swear this in front of any Commissioner of Oaths.

The DECLARATION in the Eighth Schedule is reproduced on the next page, for ease of separate printing.


This Bulletin has been sent directly to paid-up subscribing Members of Business Information Zimbabwe
And Subscribers to our Labour Relations Information Service in view of the general applicability of the topic

The BIZ service comprises fortnightly business law-based Bulletins like this one, plus a monthly Bulletin reporting a business-relevant High Court or Supreme Court case.

Explanations are intended to alert businesspeople to important issues, not as a substitute for professional legal and other advice, which Subscribers are advised to seek when in any doubt.

Subscriptions cover costs.
If you know anyone interested in paying a subscription to receive regular updates
on Zimbabwe’s ever-changing legal terrain
(US$160 covers six months)
please refer them to [email protected]
International Standard Serial Number 1684-8837

‘We give you the information – You choose to make it work for you’

EIGHTH SCHEDULE (Section 38B)
Declaration by a Motorist in Terms of Section 38B (4) of the Broadcasting Services Act [Ch. 12:06]

I ……………………………………………...……………….………… ID Number ….……..………………………
Name

of …………………….………………………………………………………………………………………………..…
Address

do hereby state that –
(1) I am the registered owner of a motor vehicle being ……………………………………………………………
make
registration number ………………………………………………………………………
(2) I hereby state and declare that the said vehicle is not equipped with a radio receiver.
(3) I swear that the above information is true and correct.
Thus, stated and sworn at ……………………….…… this day of ………..…….………… 202…...
Sworn …………………………………………………………………….. Date ………………………..
Sworn and signed before me …………………………………………. Date …….…………………

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26/05/2024

Notice Pay

Section 12(7) of the Labour Act provides for waiver of the obligation to serve notice by mutual agreement.
If the Employer does not want the employee to work his notice period but instead wants him to leave immediately, the Employer can initiate waiver of the employee’s legal obligation to work his notice
– but must then put him in the same financial position he would have been in if he had worked his notice as he was prepared to do, i.e. pay him 3 months’ salary in lieu of notice.

On the other hand, if the Employee asks the employer to waive his obligation to work his 3 months’ notice, so that he can leave immediately, then the employer is not obliged to pay him for those 3 months since waiver is at the instigation of the Employee.

18/03/2024

THE GEORGE MAKINGS COLUMN
Aspects of Labour Law in Zimbabwe
Brought to you by Howard Dean & Co, George Makings’ Publisher

An Overview of George’s 30-page handbook on Downsizing the Workforce (4th edition)
Revised to take account of the major amendments to the Labour Act in 2023 concerning Retrenchment

Reasons to Downsize
Cutting costs, adapting to technological change, re-structuring, mergers, closing a branch, closing the company

Ways to Reduce the Workforce
Natural Wastage – expiry of contracts, disciplinary dismissals, resignations, retirements
Mutual Agreements to Terminate Employment
Retrenchment – Legal Definition, Special Measures to Avoid Retrenching, Retrenchment Procedures, Packages, Tax

DOWNSIZING THE WORKFORCE (US$60) is available for purchase, in hard copy.
Contact Linda Morgan on 0772 240 992 or email [email protected] for further details

14/02/2024

THE GEORGE MAKINGS COLUMN Aspects of Labour Law in Zimbabwe
Brought to you by Howard Dean & Co, George Makings’ Publisher
George’s Commentary on the Labour Act (US$150) and Employment of Contract Workers ($80)
are available for sale, in hard copy.
Contact Linda Morgan on 0772 240 992 or email [email protected] for further details.

24/09/2023

Despite recent amendments, Labour Act still stipulates 6 ways for an Employer to terminate employment
Prior to the 14th July 2023 amendments to section 12 of the Labour Act, sub-section (4a) had specified four ways in which an Employer could terminate employment. These were –
Disciplinary Termination
Mutual Agreement to Terminate
Retrenchment, and
Expiry of a Fixed Duration Contract.

When this sub-section (4a) was inserted 8 years ago, it was accompanied by a sub-section (4b) providing,
by means of a cross-reference to section 12C of the Act, for “compensation for loss of employment…
where an employee is given Notice of termination of contract in terms of sub-section (4a) and
such employee is employed under the terms of a contract without limitation of time.”
Firstly, with a few exceptions provided for in industry-specific Codes of Conduct, Disciplinary Termination
usually involves ‘summary dismissal’, i.e. with immediate effect, which means no notice is given – so no compensation is payable, as George Makings has pointed out in a number of his labour law handbooks.
Secondly, the reference in sub-section (4b) to employees employed ‘without limitation of time’
clearly took Fixed Duration Contract employees out of the ambit of those entitled to
compensation for loss of employment when their contracts came to an end.
As I understand it, this meant that such compensation was only payable in two of the four ways of termination – to Retrenched Employees; and to Employees who had Mutually Agreed with their Employer to be Terminated.

On 14th July 2023 a replacement sub-section (4a) in section 12 reduced the four ways to two ways in which an Employer could terminate employment – Disciplinary Termination, and a Mutual Agreement to Terminate Employment.

At a recent webinar hosted by ZNCC last week, the point was made that Retrenchment as a third way of terminating employment is still provided for, by section 12C of the Act.

But in fact, the Act still provides for three additional ways for an Employer to terminate employment, bringing the total to six.

Sub-section (5) of section 12 provides for two weeks notice of termination in regard to Probation.

Sub-section (2)(b) of section 12 still provides for Fixed Duration Contracts, where it refers to “the period of time, if limited, for which the employee is engaged.” Self-evidently, once that period is reached, unless a new contract is offered and accepted, employment would come to an end.

Finally, sub-section (4) of section 14 still permits an Employer to terminate employment where the stipulated amounts of Sick Leave are exceeded.

15/08/2023

Reminder: Wednesday 23rd August (Election Day) is deemed to be a Public Holiday
We paraphrase here for your convenient reference an item from our second June Bulletin in this series.

You may safely assume that Wednesday 23rd August (next week, the date of the General Election) will be officially declared a Public Holiday in due course.

This is because in terms of section 38(2) of the Electoral Act (Chapter 2:13 of the Statute Law of Zimbabwe), polling day is automatically deemed by operation of law to be a Public Holiday, to facilitate voting.

This is what section 38(2) actually says – “The polling day or polling days fixed in terms of sub-section (1) (i.e. for the election of the President of Zimbabwe, Members of Parliament and Councillors of Local Authorities) shall be deemed to be a public holiday or public holidays, as the case may be, for the purposes of the Public Holidays & Prohibition of Business Act.”

The gazetting of 23rd August as a Public Holiday will thus be merely a courtesy notification to the general public.

27/07/2023

Latest Labour Act amendments - ONE BIG DISAPPOINTMENT

Before the latest amendments to section 12C of the Labour Act gazetted on 14th July 2023, section 12C had specified “the Minimum Retrenchment Package of not less than one month's salary or wages for every two years of service as an employee (or the equivalent lesser proportion of one month's salary or wages for a lesser period of service) shall be paid by the employer as compensation for loss of employment.” The lengthy (16 sub-sections) replacement section 12C (‘Retrenchment and compensation for loss of employment’) refers throughout to the Minimum Retrenchment Package. However, very unfortunately, and inexplicably, the useful formula of one-month’s-pay for-every-two-years-service has not been included in replacement section 12C. In fact, no details are given about this mythical ‘Minimum Package’ at all. That is a big disappointment and will undoubtedly lead to many problems down the road.



At this point we quote from labour lawyer and consultant George Makings’ July 2023 Commentary on the Labour Act. This is the Seventh Edition of George’s Commentary, which is right up-to-date and contains every section of the principal Labour Act as amended on Friday 14th July 2023 by the Labour (Amendment) Act, 2023. The Commentary is now available for sale in hard copy. Contact [email protected] for further details.



George comments – “Where a Minimum Package (whatever that is) has been paid to employees who have already been retrenched,
there is a provision for them to apply within 60 days for an Enhanced Package to be paid on the basis that the employer has the capacity to pay more.
I can foresee this being done in almost all cases which will lead to immense difficulties in deciding whether the employer has a capacity to pay more.
If this process is enforced, I can see that we will go back to the practice in the past of smaller employers closing their businesses, in which case all the
employees will lose their jobs rather than only some of them being retrenched in order to keep the business going. This makes no sense at all.”

16/06/2023

Reply to enquiry about overtime

09/03/2023

George Makings LABOUR LAW UPDATE to be held on Tuesday 21 March 2023

Date TUESDAY 21 MARCH 2023
Time 8.50am to 4pm
Delegate’s Fee US$230 including VAT
Venue Harare – Venue to be advised to confirmed Delegates, who will be sent an 81-page copy of the Labour Act containing amendments currently before Parliament

If you wish to attend, please email [email protected] for the brochure showing full details

06/01/2023

WAS US$10 MILLION PAID to a ‘COMMUNITY SHARE OWNERSHIP TRUST’ EXPENDITURE of a REVENUE or a CAPITAL NATURE?



The Supreme Court says it didn’t matter because the company didn’t have to comply with the Indigenization legislation anyway



The case of Unki Mine (Pvt) Ltd versus ZIMRA, Supreme Court Judgment SC 15 of 2022



This case deals with a US$10 000 000 ‘donation’ by Unki Mine on behalf of its foreign holding company (the Anglo American Group) to a Community Share Ownership Trust in or around 2010 in order to comply with the requirements of the Indigenization & Economic Empowerment legislation, as it was then framed.



11 years later Unki Mine was still in dispute with the Zimbabwe Revenue Authority over whether the US$10 million was expenditure of a revenue or a capital nature, in relation to its tax obligations.



The company argued that the payment was made in order for it to comply with the law and thereby continue operations and was therefore of a revenue nature, as it was incurred for the purpose of trade or in the production of income. ZIMRA disagreed.



In the end the Supreme Court disposed of the matter in 2022 by ruling that there was actually no legal obligation for Unki Mine to comply with the Indigenization legislation.



This was because the indigenization agreement by the Zimbabwe Government and the Anglo American Group specifically stipulated that each subsidiary company in the Group “shall qualify as, and shall for the duration of the Indigenous Compliance Period continue to qualify as, an Indigenous Entity in compliance with the Indigenous Act.”



It was the foreign parent company, the AA Group, which was required to indigenize its operations in Zimbabwe.



Unki made the payment on behalf of the foreign company – but the applicable principle holds that a taxpayer is not entitled to claim deductions in respect of expenses incurred by other companies in the same group.



The Supreme Court then neatly side-stepped the issue by concluding, “In our view, in the circumstances it is not necessary to determine whether or not the payment was of a capital or a revenue nature.”

08/12/2022

Where there is no written contract of employment, the minimum conditions of employment stipulated in the Labour Act apply. Section 13(1)(b) lays down that when an employee resigns he shall be entitled to the wages and benefits due to him up to the time of resignation (on 3 months’ notice, since in the absence of anything in writing he is deemed to be a permanent employee and should serve 3 months’ notice unless the employer waives that requirement). He is also entitled to cash-in-lieu of any outstanding vacation leave accrued and not taken, medical aid coverage up to the time of leaving, social security and any pension. Note that compensation for loss of employment at the rate of one month’s pay for each two years of service or proportionate part thereof is not payable where an employee resigns.