Zimbabwe

Labor relations in Zimbabwe are governed by the Labor Act (Chapter (28:01) and the applicable Sector codes as well as the Statutory instruments. The responsibility for adherence to the Labor Act and related aspects normally rests with the Human Resources Department of each organization.  Expatriates working in Zimbabwe must hold a valid work permit and a residence permit approved by the Chief Director of Immigration. Expatriates intending to work in Zimbabwe for a period less than six months must obtain a Temporary Employment Permit (TEP).

There is no restriction on the number of foreigners that an investor may employ. The investor is, however, required to substantiate hat the required skill cannot be sourced from within Zimbabwe. Expatriates are expected to be understudied by Zimbabweans and training programs are to be conducted for local staffs. In terms of Zimbabwe’s employment legislation, an employee may be seconded to Zimbabwe, but a temporary work permit will be required.

Fixed-term contracts are allowed in terms of the Labour Act. However, the Labor Act denotes it to be an unfair dismissal in cases of a fixed term contract whereby, on termination of an employment contract of fixed duration, the employee had a legitimate expectation of being re-engaged and another person was engaged instead of the employee.

While there are no specific legislative prohibitions for labour broking, this practice is not generally accepted and the validity of this practice is not well established in terms of law.

The Labour Act states that it is not mandatory for an employer to engage an employee on a probationary basis. The employer exercises its discretion to either enter into a probation contract or to employ the employee outright, on a substantive basis.

The Act however stipulates the duration of the probation period and parties to a probationary contract are bound to adhere to these durations. In terms of the Act, the probationary period for a casual or seasonal worker is one day. The probationary period for employment instances falling outside of casual and seasonal work is three months. It is common practice among employers in Zimbabwe to set the probation period between three and six months.

1. Annual Leave

The Labour Act provides paid annual leave on completion of one year of service with an employer. Employees are entitled to a rate of 30 days or one-month leave after a continuous employment period of one year. Annual leave is subject to a maximum accrual of ninety days’ paid vacation leave only if an employee is granted a portion of the total vacation leave which may have accrued to him/her. The employee may be granted the remaining portion at a later date, together with any further vacation leave which may have accrued to him at that date, without forfeiting any such accrued leave.

1. Maternity Leave

A female employee who has been employed for at least one year may be granted 98 days’ maternity leave on full pay in terms of section 18 of the Labor Act. Any maternity leave in excess of 98 days may be granted as unpaid leave.

1. Paternity Leave

There is no right to paternity leave under the Labour Act. An employer is, however, at liberty to permit a male employee to take paternity leave.

1. Sick Leave

In terms of Section 14 of the Labour Act, the employee is entitled to 90 days in one calendar year with full pay of sick leave which is supported by a registered medical practitioner.

If during the oneyear period, the employer exhausts the 90 days sick leave, the employer shall grant a further period of up to 90 days sick leave on half pay where in the opinion of a medical doctor the employee will be able to resume duty after such period of sick leave.

If the period of 180 days granted in both (a) and (b) are granted and the employee has still not recovered, the employer may terminate the employment.

1. Compassionate/ Special Leave

In terms of Section 14B of the Labour Act, an employee is entitled to a maximum of twelve (12) days in a calendar year on compassionate grounds which are justifiable. Such as;

• When required to be absent from duty on the instructions of a medical practitioner because of contact with an infectious disease;
• When subpoenaed to attend any court in Zimbabwe as a witness;
• When required to attend as a delegate at any meeting of a registered Trade Union representing employees within the undertaking in which the employee is employed;
• When detained for questioning by the police;
• When there is the death of a spouse, parent, child or legal dependent and
• On any justifiable compassionate grounds
• 1. Unpaid Leave

There is no obligation on the employer to grant unpaid leave however in terms of Section 14A (5) of the Labor Act the employer may grant vacation leave without pay where an employee has no vacation leave accrued but wants to go on leave.

Section 12(4a)(a)-(d)of the Labor Amendment Act No. 5 of 2015 expressly abolished the employer’s common law right to terminate a contract of employment on notice as enunciated by the Supreme Court in the Zuva judgment Don Nyamande and Anor v Zuva Petroleum.

In terms of section 12(4a) of the Labor Amendment Act No. 5 of 2015, an employer’s right to terminate an employee’s contract of employment on notice is now strictly limited to four scenarios namely;

• termination in terms of an employment code or, in the absence of an employment code, in terms of the model code made under section 101(9);
• the employer and employee mutually agree in writing to the termination of the contract; or
• the employee was engaged for a period of fixed duration or for the performance of some specific service; or
• pursuant to retrenchment, in accordance with section 12C.

Outside the aforementioned four instances, an employer does not have any legal right to terminate a contract of employment on notice. The common law right that existed formerly in favour of employers to terminate a contract of employment on notice is now a thing of the past as it was abolished by section 12(4a) of the Labour Amendment Act No. 5 of 2015 with effect from 17 July 2015.

• The termination on notice in terms of an employment code or the model code

This means that a registered employment code of conduct, or the national employment code of conduct (model) code, gave an employer the right to terminate a contract of employment on notice within that relevant employment code or model code.

In the absence of an express right of an employer to terminate a contract of employment on notice being provided for in the applicable employment code of conduct, an employer does not have any legal right to terminate a contract of employment on notice in terms of an employment code.

It is noteworthy to point out that the model code, that is, the National Employment Code of Conduct; Statutory Instrument 15 of 2006 does not give employers any right to terminate a contract of employment on notice. Suffice to mention that section 5 of Statutory Instrument 15 of 2016 provides for legally permissible grounds upon which an employer can terminate an employee’s contract of employment and none of these grounds closely or remotely relates to termination on notice. Thus, in terms of the model code as it currently stands, termination on notice is illegal.

• Mutual Termination

Where there is mutual termination there must be a mutually signed agreement between the concerned employer and employee confirming termination on notice.

Once the parties append their signatures to the mutual termination agreement both parties are legally bound by the mutual termination agreement. Thus, it is vital for the employer and employee to know that the moment they sign a mutual termination agreement, they are legally bound by such a contract. It is necessary that the mutual termination agreement be signed by the employer and employee and not some other third parties, agents or proxies, otherwise such a mutual termination agreement can be legally contested.

• Termination on Notice

This allows for termination of a contract of employment on notice at the behest of the employer where the employee was engaged for a period of fixed duration or for the performance of a specific service.

This circumstance applies to fixed term contracts of employment and those contracts for some specific service. If an employee is employed for a fixed term contract of employment or on a contract for the performance of some specific service, then the employer has a right to terminate that contract of employment on notice.

• Termination pursuant to retrenchment

The fourth scenario which gives an employer the right to terminate a contract of employment on notice is where the employer terminates such contract of employment pursuant to a retrenchment in terms of section 12C of the Labour Act.

The retrenchment procedure has been simplified by the new section 12C of the Labour Act which has created a one stop shop by giving employers the right to retrench employees and also specifying the minimum retrenchment package which employers can pay the affected employees.

The new section 12C of the Labour Act applies to the retrenchment of one or more employees unlike the repealed old section 12C of the Labour Act which applied only to the retrenchment of five or more employees.                

In terms of section 12C (2) of the Labour Act, unless the employer and employees concerned, or their representatives, agree to better terms, the employer has the right to pay the affected employees a 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.

Companies in Zimbabwe, whether wholly foreign-owned or indigenous, that are desirous of hiring a foreigner with special competence must ensure that the foreign national possesses a Temporary Employment Permit (TEP); in order to work in Zimbabwe.

(a) Temporary Employment Permit (TEP)

A TEP is issued by the Department of Immigration in Zimbabwe. In terms of a TEP, work means any activity (paid or unpaid) but in the interest of any business undertaking operational in Zimbabwe. A TEP is valid for either six months or a year.

Persons Who Can Apply for a Temporary Employment Permit;

• Professionals offering scarce skills, which are not easily available in Zimbabwe.
• Journalist on assignments.
• Short term Temporary employment permit (12 months) – personnel on short contracts.
• Foreign Researchers – who must in the first instance, be cleared by the Research Council of Zimbabwe.

The requirements for obtaining a Temporary Employment Permit include;

• Fully completed residence permit Application Form (IF5);
• Temporary Employment Permit (TEP) Application Form;
• Application letter addressed to the Chief Director of Immigration requesting for permit;
• Two passport size photos;
• Curriculum Vitae;
• Contract of employment;
• Copies of academic and professional certificates;
• Passport bio-data page;
• Chest X-ray certificate;
• Advert in a local newspaper;
• Curriculum Vitae for two shortlisted candidates including their contact details;
• Police clearance from country of residence (not older than 6 months);
• Curriculum Vitae of person identified to do understudy;
• Professionals to be cleared by relevant authorities e.g Engineers to be cleared by the Engineering Council of Zimbabwe;
• Private Voluntary Organization Certificate from social welfare for applicants under Non-Governmental Organizations (NGOs);
• Support letter from line Ministry for Government supported projects or where companies were granted National Project Status;
• Support letter from Relevant Regulatory Authority/Ministry;
• Company profile;
• Certificate of Incorporation;
• Memorandum and Articles of Association;
• CR6 (registered office address);
• CR14 (list of directors);
• Valid Zimbabwe Investment Authority (ZIA) Licence;
• ZIMRA Tax clearance certificate;
• Site map and directions from the nearest town;
• Mining companies to submit Environmental Impact Assessment certificates from Environmental Management Agency (EMA) and claim certificates from Ministry of Mines;
• Current list of all expatriates and local employees (include NSSA numbers, ID numbers and contact numbers);
• Statutory fee of USD$500 and USD$300 per family dependent, all non-refundable;
• Applications are to be in duplicate.

 All Copies of all documents are to be sufficiently authenticated, those from outside Zimbabwe are to be notarized in the prescribed manner whilst those from within may be certified by a commissioner of oaths.

–          All translations to be in English and the copies of original documents to be tendered.

–          Translations to be done by reputable institutions (preferably government entities).

–          All extensions to be done three (3) months prior to expiry of current permit.

(b) Investor Residence Permit

In order to lawfully take up residence in Zimbabwe, foreign investors are required to obtain an Investor Residence Permit from the Department of Immigration.

The application requirements are as follows:

• Two certified passport size photographs of the applicant;
• A certified copy of the investment certificate from the Zimbabwe Investment Authority;
• The individual’s brief biography, clearly stating the applicant’s background in education, employment, investment in the country of origin and other pertinent issues;
• The applicant’s recent banking history in the form of bank statements from the country of origin;
• Proof of ready and sufficient funds available for transfer in furtherance of the venture;
• Proof and value of any equipment to be transferred for use by the joint venture company in its operations;
• Two fully completed Residence Permit application forms which must be attested by a commissioner of oaths or a notary public;
• The Certificate of Registration/Incorporation of the joint venture company;
• A copy of the project proposal;
• A copy of the applicant’s birth certificate;
• The applicant’s recent chest X-ray certificate;
• Proof of residential status of the indigenous partner in the mining venture;
• The applicant’s recent police clearance from the country of origin;
• A letter addressed to the Principal Director of Immigration requesting the issuance of the Investor Residence Permit;
• An indigenisation clearance letter from the Ministry of Youth Development, Indigenisation and Economic Empowerment;
• A statutory fee of US$500.00.

Where all documentations are in order, the turnaround time for the processing of the Investor Residence Permit is about six (6) weeks. In instances where the investor is to bring in foreign labour for the joint venture, the particular expatriate will be required to first obtain a temporary employment permit from the Department of Immigration before he may commence working for the joint venture company in Zimbabwe.

(c) Business Visitor’s Visa

The Zimbabwe Business Visitor’s Visa is issued to individuals who intend to travel on business purpose. Individuals applying for Zimbabwe visa, should have a source of income or an established business outside Zimbabwe. A business visa may be granted for a period of thirty (30) days and is non-renewable. This may be granted to personnels coming in business for Consultancy work. Installation and back up service for machinery purchase outside Zimbabwe by local companies can also be issued to business persons scouting for business in Zimbabwe.

To apply for this Visa, the following is required:

1 Completed Visa application form;

2. Non-refundable application fees as reflected below;
3. Two passport size photographs.

The Single-Entry visa is US$30.00 and for Double Entry Visa it is US$45.00 and for Multiple Entry Visa it is US$55 (To be supported by a letter).

(d) Investor License

Any investor wishing to obtain the approval of ZIDA for their existing or projected investment outside a special economic zone, for the purposes of securing the protections accorded by the ZIDA Act to the investment must apply for an investment license.

The process is as follows;

• An application is made to the ZIDA and shall be accompanied by the prescribed fee and such documents as the ZIDA may require.

The Chief Executive of the Zimbabwe Investment Development Agency is statutorily empowered without delay, to either approve or refuse an application for an investment license. The Chief Executive is also empowered at his or her discretion, to refer any application for an investment license to the Board for its advice or recommendation thereon; or impose such conditions on the issuance of an investment license as he or she considers fit.

An investment license other than one for investment in a special economic zone shall be for a period fixed by the Zimbabwe Investment Development Agency from the date of issue. An investment license for investment in a Special Economic Zone shall be for a period of ten (10) years.

The National Social Security Authority (NSSA) is constituted and established in terms of the NSSA Act of 1989, Chapter 17: 04. It is the statutory corporate body tasked by the Government to provide social security.

The provision of social security can be defined as instituting public policy measures intended to protect an individual in life situations or conditions in which his/her livelihood and well-being may be threatened, such as those engendered by sickness, workplace injuries, unemployment, invalidity, old age, retirement and death.

There are various schemes created under the Act designed to benefit employees and their dependents. Currently NSSA administers two schemes namely the Pensions and Other Benefits Schemes (POBS) and the Accident Prevention and Workers Compensation Scheme (APWC).

(a) Pensions and Other Benefits Schemes (POBS).

The Pension and Other Benefits Scheme is financed from equal monthly contributions by both employers and employees. It is the employer’s obligation to ensure that contributions are deducted and paid to NSSA. The contribution rate is as follows; 4.5% of the insurable earnings (employee) and 4.5% from the employer. The total of 9% is to be paid to the nearest NSSA office before the 1^st of each month.

The Pension and Other Benefits Scheme offers five main types of benefits which are as follows:

• Retirement Benefit (Pension or Grant)

The retirement benefit is paid to qualifying contributors upon retirement. The benefit may be paid out in the form of a grant if the contributory period is more than 12 months but less than 120 months, or a pension paid monthly in arrears to a contributor until his/her death, if the period of contribution is 120 months or more.

Who Qualifies?

• Contributors who have attained 60 years of age, for normal retirement, or 65 years, for late retirement, and are no longer employed or contributors who have attained the age of 55 and are no longer employed, provided that during at least 7 years of the last 10 years immediately prior to attaining the age of 55 they have been in arduous employment, qualify.

Arduous occupations are as follows:

• Transport: Heavy truck driver
• Forestry
• Chain saw operator
• Jack operator
• Jig saw operator
• Dump Truck operator
• Timber loader
• Cross cut saw operator
• Stumper
• Quarry: Quarries
• Mining: Underground operations such as lashing, tramping, grizzly operations, rigging and employment in hot areas such as coke ovens and smelters.
• Surface operations: Operations in smelter furnaces refining, kettle attendance and trapping.
• Agriculture: All Agricultural work.

When to claim the Retirement Grant

• Statutorily, the claim should be submitted within five years after the date of retirement.

When to claim the Retirement Pension

• Statutorily, the claim should be submitted within twelve months after the date of retirement.

What documents are required when making a claim?

• P9/P10 form, completed by the contributor and employer;
• Certified copy of claimant’s national identity card, valid Zimbabwean passport or driver’s licence;
• Bank statement;
• Payslip, stamped and signed by employer.

• Invalidity Benefit (Pension or Grant)

This benefit is paid out to contributors who become permanently incapacitated due to illness or injury.

Who qualifies for the Invalidity Pension?

In order to qualify for the Invalidity Pension contributors must satisfy the following criteria:

• They must be below the age of 60 years and they should have contributed for at least 12 months;
• They must be medically certified as permanently incapable of work as a result of physical or mental ill health.

Who qualifies for the Invalidity Grant?

In order to qualify for the Invalidity Grant contributors must satisfy the following criteria:

• They must be below the age of 60 years and they should have contributed for at least 6 months;
• They must be medically certified as permanently incapable of work as a result of physical or mental ill-health.

When to claim the Invalidity Grant?

• In terms of Statutory Instrument 393 of 1993 the claim application must be submitted within five years of invalidity.

When to claim the Invalidity Pension?

• In terms of Statutory Instrument 393 of 1993 the claim must be submitted within twelve months of invalidity.

What documents are required when making a claim for the Invalidity Benefit?

• P9/P10 form, completed by the contributor and the employer;
• P11(a) form, completed by a registered medical doctor;
• Certified copy of claimant’s national identity card, valid passport or driver’s licence;
• Bank statement;
•  

• Survivor’s Benefit (Pension or Grant)

This benefit is paid out to the surviving dependants of a deceased contributor.

Who qualifies for the Survivor’s Benefit?

In order to qualify one must be a surviving dependant of a deceased contributor, who, at the time of death, would have been entitled to an Invalidity or Retirement benefit. The following categories of individuals are eligible to apply for the survivor’s benefit:

• Widow/widower, provided that the marriage was contracted before retirement or invalidity;
• Dependent children of the deceased who are below the age of 18 and or those who are below 25 years, provided that they are in full time education.
• permanently disabled dependent children who are incapable of supporting themselves regardless of their age;
• Parents of the deceased contributor;
• Any other dependents

NB: NSSA pays this benefit to the surviving claimant in order of priority, according to the above list.

• Pension or Grant

The survivor’s benefit is payable as a monthly pension in arrears or as a grant.

When to claim the Survivor’s Benefit?

• In terms of Statutory Instrument 393 of 1993 the survivor should submit the claim for the survivor’s benefit within 12 months after the death of a contributor.

What documents are required when claiming the Survivor’s Benefit?

• P9/P10 form, completed by the claimant and signed by employer of contributor;
• Certified photocopy of national identity card, valid Zimbabwean passport or driver’s license;
• Certified photocopy of death certificate of the deceased contributor or pensioner;
• Certified photocopy of marriage certificate or original affidavit (if spouse is claiming);
• Certified photocopies of long version birth certificates of the children under 18 years of age;
• Certificate of guardianship (where a guardian claims on behalf of children under 18 years);
• Bank statement;
• Pay slip;
• Deceased birth certificate if the parent is claiming;
• Dependents certificate if it’s any other dependent claiming.

• Funeral Grant
• This benefit is paid out to the surviving dependents of a deceased contributor.

Who Qualifies for The Funeral Grant?

• The funeral grant is paid out towards the funeral expenses of the deceased contributor if he/she had contributed to the Pension and Other Benefits Scheme for at least twelve months. The funeral grant is paid out to any person who meets funeral expenses for the deceased contributor.

When To Claim The Funeral Grant?

• Statutorily the funeral grant claim must be made within five years after the death of contributor or pensioner.

What documents are required when claiming the Funeral Grant?

• P9/10 form, completed by the claimant and the contributor’s employer;
• Certified copy of death certificate or a burial order;
• Certified copy of claimant’s national identity card, passport or driver’s licence.

(b) Accident Prevention and Workers Compensation Scheme (APWC).

• The scheme provides financial relief to employees and their families when an employee is injured or killed in a work-related accident or suffers from a work-related disease. Creating an awareness of and promoting safety and health at all places of work.
• Providing rehabilitation services to disabled workers so as to reduce their disablement and return them to their former employment or otherwise prepare them for a useful and meaningful place in society.
• When an employer commences business, he/she is required to go to his/her nearest NSSA office to complete registration forms indicating the estimated earnings of his/her employees. The minimum insurance premium the employer is required to pay will be calculated using a risk factor depending on the type of industry the company is involved in. The insurance year runs from January 1 – December 31st.
• Employers have the responsibility of keeping NSSA informed of any changes or developments in their businesses. This will allow NSSA to keep accurate records and to adjust their insurance premiums and records in line with any changes as and when they occur.
• The scheme covers all workers formally employed in a profession, trade or occupation who are above the age of 16.
• Workers who are exempted are civil servants, domestic workers and informal workers.