Termination of Employment in Zimbabwe

How Employment Ends in Zimbabwe

Termination of employment in Zimbabwe is heavily regulated by the Labour Act [Chapter 28:01] to protect both employer and employee interests. Understanding the correct procedures is critical — improper termination exposes employers to costly litigation and compensation orders from the Labour Court.

Employment can end in several ways:

• Resignation — the employee gives notice
• Dismissal — the employer terminates for cause (after disciplinary proceedings)
• Summary dismissal — immediate termination for gross misconduct
• Retrenchment — redundancy due to operational requirements
• Mutual agreement — both parties agree to end the relationship
• Expiry of fixed-term contract — the contract period ends
• Death or incapacity — of the employee
• Retirement — reaching the agreed or statutory retirement age

Notice Periods

The Labour Act prescribes minimum notice periods based on how the employee is paid:

These are minimum periods. The employment contract or applicable NEC agreement may specify longer notice. Notice must be given in writing. Either party may offer payment in lieu of notice — an amount equivalent to the salary for the notice period.

Summary Dismissal (Without Notice)

Summary dismissal — termination without notice — is only permissible for serious misconduct. Common grounds include:

• Theft or fraud against the employer
• Gross insubordination or refusal to obey lawful instructions
• Violence or assault in the workplace
• Deliberate destruction of company property
• Being under the influence of alcohol or drugs at work
• Serious breach of safety rules endangering lives
• Gross dishonesty or misrepresentation

Dismissal for Misconduct or Poor Performance

For misconduct that does not warrant summary dismissal, or for poor performance, the employer must follow a progressive disciplinary process:

1. Verbal warning — documented in the employee’s file
2. First written warning — stating the offence and expected improvement
3. Final written warning — warning that further misconduct will lead to dismissal
4. Disciplinary hearing — a fair hearing with notice of charges and the right to respond
5. Dismissal — only after the hearing finds against the employee and the penalty is proportionate

For poor performance, the employer must additionally demonstrate that the employee was given clear objectives, adequate training, and a reasonable period to improve before dismissal is considered.

Retrenchment (Redundancy)

Retrenchment occurs when the employer needs to reduce the workforce due to economic, technological, or structural reasons. The Labour Act (section 12C) sets out strict requirements:

Retrenchment Procedure

1. Notify the Retrenchment Board in writing of the intention to retrench
2. Consult with employees through the workers’ committee or trade union, providing reasons and exploring alternatives
3. Apply selection criteria — typically “last in, first out” (LIFO) unless objective alternatives are agreed
4. Calculate packages — minimum 1 month’s salary per year of service
5. Issue notice — statutory notice periods apply in addition to the retrenchment package
6. Pay out all entitlements — retrenchment package, accrued leave, outstanding wages, and any bonus pro rata

Minimum Retrenchment Package

NEC agreements for specific sectors may provide for higher retrenchment packages. The Retrenchment Board may also approve enhanced packages during consultation.

Unfair Dismissal

A dismissal is automatically unfair if it is based on:

• Trade union membership or activities
• Filing a complaint or participating in proceedings against the employer
• Pregnancy or maternity leave
• Race, gender, religion, political opinion, or disability
• Refusal to do work that poses a serious health or safety risk
• Exercise of any right under the Labour Act

A dismissal is also unfair if the employer fails to follow a fair procedure, even if there were substantive grounds for dismissal.

Remedies for Unfair Dismissal

The Labour Court may order:

• Reinstatement — return to the same position with full back pay
• Re-engagement — employment in a comparable position
• Compensation — where reinstatement is impractical, monetary damages based on salary and service