Categories: Stories

Government seeks to reverse court ruling on job cuts

President Robert Mugabe’s government today issued new labour regulations that seek to reverse a July 17 Supreme Court ruling allowing employers to terminate contracts on notice, but analysts said the proposals could lead to more confusion and are open to legal challenge in their current form.

An estimated 20 000 workers have been laid off in the month since the court decision, with struggling firms taking advantage of the ruling to cut jobs without being encumbered by onerous retrenchment procedures.

The new regulations, dubbed Labour (General Conditions of Employment) (Termination of Employment on notice) Regulations, 2015, only allow employers to terminate employee contracts by mutual agreement, at the end of fixed-term contracts, in terms of a registered code of conduct or in terms of retrenchment procedures laid out in the law.

“These regulations shall have retrospective effect from 17 July 2015,” reads the government notice.

The government also published the Labour Amendment Bill which compels employers who have terminated employment following the Supreme Court’s July 17 ruling to follow the proposed laid down retrenchment procedures retrospectively.

However, labour experts said the proposals were unlikely to pass in their current format as they are in violation of current legislation.

“The law cannot be applied retrospectively in violation of existing rights,” labour lawyer Selby Hwacha said.

If passed, the proposals were open to legal challenges by employers, he said.

Analysts also said more job losses were likely in the next few weeks as companies continue streamlining their workforce.

The Bill is subject to approval by the country’s Parliament.-The Source

(448 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024