The Labour Amendment Act 11 of 2023 introduced significant changes to the retrenchment process in Zimbabwe, amending Section 12C of the Labour Act [5 of 2015] to provide clearer guidelines and protections for employees. To complement these changes, the Minister of Public Service, Labour, and Social Welfare promulgated the Labour (Retrenchment) Regulations, 2024 (Statutory Instrument 191 of 2024), which came into effect on 6 December 2024. These regulations establish a more structured framework for handling retrenchment in Zimbabwe, aiming to strike a balance between protecting employees’ rights and providing employers with flexibility in response to economic conditions. This marks a significant development in the country’s retrenchment law.
Key Provisions
1.Establishment and Composition of the Retrenchment Board
One of the key features of the Regulations is the establishment of the Retrenchment Board under Section 3. The Board is responsible for overseeing retrenchment matters, including dispute resolution and policy recommendations. Its composition includes representatives from various sectors and ministries, ensuring that retrenchment issues are considered from a broad range of perspectives.
Functions of the Retrenchment Board
Section 4 outlines the main functions of the Retrenchment Board, which include:
- Resolving disputes arising from retrenchments.
- Recommending policies related to retrenchment practices. The aim is to provide a clear and dedicated platform for addressing retrenchment issues in a manner that is both transparent and fair, thereby protecting the rights of employees while allowing employers the flexibility they need in managing workforce reductions.
2. Minimum Retrenchment Package
One of the most notable changes brought about by the Regulations is the minimum retrenchment package, specified in Section 5. Previously, the Labour Amendment Act 11 of 2023 did not define this package, leading to inconsistencies. The new Regulations stipulate that unless better terms are negotiated, the minimum retrenchment package is one month’s salary for every year of service, a more generous provision than the previous one month’s salary for every two years served. This clarification ensures a standard approach to retrenchment compensation, providing employees with clearer expectations in case of retrenchment.
3.Procedural Requirements
Section 6 sets out the procedural requirements for employers wishing to retrench employees. These include:
- Serving notices using prescribed forms.
- Issuing notification certificates within specified timelines. These safeguards are designed to prevent arbitrary retrenchment and ensure that the process is conducted in an orderly, lawful manner. By establishing clear timelines and requirements, the Regulations promote transparency and fairness in the retrenchment process.
4.Repeal of Previous Regulations
Section 7 of the Regulations repeals the outdated Labour Relations (Retrenchment) Regulations, 2003, marking the end of the previous framework. This repeal signifies a move towards modernizing the regulatory environment for retrenchment, aligning it with current economic realities and legal standards.
Conclusion
In conclusion, the Labour (Retrenchment) Regulations, 2024 represent a critical step towards improving the retrenchment process in Zimbabwe. They provide much-needed clarity on the minimum retrenchment package, establish a Retrenchment Board to oversee disputes and policy recommendations, and introduce procedural requirements that ensure transparency and fairness. These changes modernize the legal framework for retrenchment, protecting employees while providing employers with the flexibility to respond to economic challenges.
These developments will help create a more predictable, fair, and legally sound approach to retrenchment in Zimbabwe, ensuring that both employers and employees understand their rights and responsibilities within the process.
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