IMPACT OF ZIMBABWE LABOUR AMENDMENT BILL

Posted on 13 January, 2023 at 16:27

Prepared by Moreen Chikandwa

The aforementioned topic is to assess the negative and positive effects intended by the Labour Amendment Bill {14-21} (henceforth mentioned as the bill) which will amend, The Labour Act Chapter 28:01 which 

has alarmed employers' way of treating employees at the workplace. In the past years, the Labour Act Chapter 28:01 had been emerging in a way to meet the prevailing economic environment in Zimbabwe. Nevertheless, this comes with a consequence in the employment sector, which might have an impact towards the employer. The major changes that are going to be seen which will affect the labour market or workplace negatively or positively will be discussed below.

Employment of Young persons; this clause amends section 11

i. Alongside the expansion of the population and increased demand for employment by the learned population, the past decagon has resulted in young persons under the age of 18years being employed. The reason for this was the bargain price. Moreover, the amended bill aspires to restrain this by raising the punishment of an employer found guilty of practising child labour. Presently in terms of 

section 11 (5) of the Labour Act a two-year sentence is charged 

against the employer who recruits underage, thus below 18 years.

ii. Nonetheless, the labour bill intends to modify this position 

by that, an employer will be given a judgement of ten years with the perspective to allow a more discouraging sanction given the backcloth of increasing trade sanctions on products produced in child labour-prone markets. 

This will negatively affect only employers who currently employ underage people in terms of financial budget as under aged people are usually a source of cheap labour as they are in most instances not qualified for the jobs. The provision would also negatively affect the employer in terms of having to serve custodial sentences of up to 10 years which would and going to prison, since they will not risk breaking the law but abide by it. The organisation one of its aim is to minimize costs, however, abiding by the law means their financial budget will have to increase and they must find other lawful ways to cut costs. For instance, conduct proper training for best productivity within the working sector. To some extent, the labour bill will positively affect the employer in the sense that quality goods will be produced, which might put an end to trade sanctions on products produced in child labour markets and also increase their profit margin through offering quality services.

Payment during maternity leave

iii. In the past decade Zimbabwe vastly experienced a wave of women empowerment. This resulted in the development of our regulations, especially in the labour Act. In light of this, females have always been deemed as a question of victimisation when it comes to pregnancy throughout the employment contract. In terms of the Labour Act Chapter 28:01, (section 18) maternity leave is given for a period of ninety-eight days on full pay to a female employee who has at least served one year in the organisation.

iv. In addition to this, a female employee only gets a maximum of three periods of leave with pay. In this case, the labour bill seeks to amend section 18 of the current labour Act to match section 65 (7) of the constitution. This gives assurance that female employees must be paid fully on maternity leave for three months even if they are on probation and also can get more than three periods, enjoying the right to maternity leave under one employer.

This has negatively affected the employer, in the sense that they will have to meet the demands of the bill, and whilst the female employee is on maternity leave, they will be fully paid. The replacement also will be on full salary, resulting in them having a strained budget. The replacement will need job training which might take time and will go before he/she fully gives back to the company. However female employees will have 

normative commitment where they feel a sense of guilt about the possibility of leaving. Hence an employee will acquire employees within the organisation resulting in high productivity. This provision can also result in employers restraining from employing some women group in fear that childbearing would take up many years of their time and budget. However, this is indeed a welcome development for women as the law no longer “plans” their families for them as they can now have children on their own time without fear of not being paid if they went on maternity leave.

Retrenchment

v. The new bill protects employees from unfair labour practices resulting from retrenchment by employers. In terms of the existing section 12C, an employer has a choice not to pay the lower limit retrenchment package given that an application for exemption is made to the retrenchment board. The bill in motion seeks to envelop the difference between employees who are employed permanently and those who are on fixed-term contracts depicting that employers who have the majority of their employees on the fixed term will have to put into consideration a retrenchment package when the contracts are terminated.

vi. Section 12C of the current labour Act tends not to disclose the retrenchment application between employees on permanent and fixed-term contracts. The whole proposition is to encourage a more beneficial package for the employees if an employer can pay above.

vii. The bill amends to provide crucial definitions in line with retrenchment which is not in the existing section such as retrench’; employer’ and made facility to ensure that employers’ need to pay retrenchment package to employees is fulfilled.

Therefore, this has a negative effect, if an employer tends not to pay employees according to his/her financial capacity, and employees are allowed to make retrenchment boards. An employee can be taken to court; it has consequences and might damage the image of the company. More so, appealing might need better financial muscle, for legal services. hence suggesting doing the right thing will be the best. The positive impact is that employees may not b

 aware of the company’s position, resulting in demand for better retrenchment. If financial records are to be proven in front of a court of law, this might help to escape the vigorous retrenchment that employees will be demanding. 

The bill seeks to provide a way for effecting the law of non-payment of a retrenchment package through the labour Court. This implies that employees will be protected from unfair remuneration and labour practise. In this view, it will be wise for employees to stick to the same way to avert being found guilty of unfair labour practices. Pursuit 

the new section bill guarantee that employers do not violate payment of retrenchment package to their workers by fraudulently way of doing business. Already this is an alarm to employers that once the bill is passed, they must not be found operating against the labour Act.

Fixed term contracts 

viii. With section 12 of the labour Act, it exhibits that a fixed-term contract can be for any period including less than 12 months. On the new changes in the bill aim to amend section 12 to clearly deal with the issues of the common law practice of termination on notice and also manage issues of casualization by making a provision that fixed term contract cannot be for a period that is less than 12months, except the employment is seasonal.

ix. In addition, the bill seeks to introduce a law that binds an employer to pay a retrenchment package to employees on fixed terms whose employment has terminated by ending of that term. 

 This will affect an employer to financial budget for fixed-term contracts and make the employees understand their type of contracts. Previously some employers would employ a worker for more than twelve months and still deemed to be on fixed term contract. Now the constitution seeks to put it in witting as a guide to employers. Therefore, this put an end to employers who consider it as a way of minimizing the cost of employee benefits.

Contracts for hourly work

The amendment bill seeks to restrain employers from compelling employees on terms that the employee would be paid the number of hours he/she worked. the conditions considered are as followed :

x. An employer is not permitted to engage an employee on hourly contracts if the outcome of such contract is that consecutive period of two months the employee earns less than the minimum wage fixed in a collective bargaining contract as the minimum rate wage 

for undertaking type of occupation governed by the agreement.

xi. An employer will not be allowed to engage an employee on hourly contracts if the conditions forbid a such employee from being employed by another employee or on his/her account, during the hours when they were not working.

With all this in mind, the bill seeks to affect the employer, in the sense that the employer will not have any way to shortchange the employee in any circumstances. Therefore, there will be an increase in the financial budget for the organisation. Positively there will be a clear standard that governs the employment act through the labour act.

In short, one may allude that the new amendment bill seeks to negatively and positively affect an employer. Suggesting that negatively, the organisation must have the strong financial muscle. The employer will not recruit workers if they do not meet the demand of the new labour bill in motion if it passed. However, this creates normative commitment in an employer-employee relationship since they will feel a sense of security and self-belonging to the organisation. Hence increasing productivity in the organization.