Download as doc, pdf, or txt
Download as doc, pdf, or txt
You are on page 1of 18

1.

INTRODUCTION AND RATIONALE FOR LABOUR LAW


REFORM

Government

has

been

seized

with

the

process

of

harmonising current Labour Laws in consultation with social


partners and various stakeholders since the last amendment
in 2005. The labour law harmonisation process has been
necessitated by the need to create an enabling environment
for socio-economic transformation, driven by the dynamics
of the labour market.
In this process the Cabinet Task Force on Labour Law
Reforms met on the 22nd of May 2014 and mandated the
Working Party of officials to ensure that the labour laws of
the country;
a) are aligned to the spirit and purpose of ZIM-ASSET,
b) promote labour market flexibility,
c) are not vague and do not have contradictory provisions.
Following

the

Cabinet

Task

Forces

deliberations,

the

Minister of

Public Service, Labour and Social Welfare

conducted

consultations

with

Business

and

Labour

leadership that resulted in a tripartite agreement on the


draft principles.
1.1 The proposed Principles take cognisance of the historic
economic blueprint, ZIM-ASSET, which seeks to achieve
sustainable development and social equity anchored on
indigenization,
1 | Page

empowerment

and

employment

creation..(p.iii). These underlying principles of ZIM-ASSET


will thrive under robust labour laws which seek to strike a
balance amongst the interests of Government, Business and
Labour. This is the intent and purpose of the current labour
law reform process.
1.2 The Constitution of Zimbabwe (Amendment no. 20 of
2013) also guided this process as it provides for the right to
just,

fair

and

equitable

conditions

of

work.

It

also

guarantees fundamental labour rights particularly under


section

65.

It

is

necessary

to

ensure

Constitutional provisions are clearly

that

these

elaborated in the

various Acts of Parliament that give effect to workers and


employers rights and obligations. Aligning Constitutional
provisions and the Labour statutes certainly will create an
environment for harmonious industrial relations where the
rights of all parties are guaranteed.
1.3

As

member

state

of

the

International

Labour

Organization (ILO), Zimbabwe also has an obligation to


domesticate and give effect to Conventions that it has
ratified

as

Constitution

required
of

in

terms

Zimbabwe.

of

section

Domestication

34
of

of

the

these

international Conventions will ensure that Zimbabwe is in


concordance with the international community. This will
cultivate a conducive environment for investment promotion
that will enable Zimbabwe to achieve economic growth and
reposition the country as one of the strongest economies in

2 | Page

the region and Africa as is envisaged under ZIM-ASSET (p.


iii).

1.4 MAJOR ISSUES ARISING OUT OF THE TRIPARTITE


CONSULTATIONS
It

emerged

during

the

consultations

that

certain

constitutional rights particularly the right to collective job


action and the right to maternity protection should be
reviewed. The right to strike is a fundamental social right.
However, it is not absolute but is limited by the subjective
rights of others insofar as such limitations are prescribed by
law

and

necessary

in

democratic

society

for

the

protection of the rights and freedoms of others, or for the


protection of the public interest, national security, public
health or morals.
The right to maternity protection is also subjective as its full
realisation will require the State to put up mechanisms
which will lighten the burden on the employer to promote
sustainable socio-economic growth. This is in the spirit and
intent of one of the major ZIM-ASSET goals of employment
promotion.
In as far as the Principle of Streamlining Retrenchment
Provisions is concerned, the social partners compromised
on the principle to set retrenchment packages for all
workers.

It was realised that when the retrenchment

process commences, parties would spend long hours trying


3 | Page

to negotiate a package. After thorough closed debates


amongst social partners, it was then agreed that this was
hindering productivity hence a minimum package should be
set at Employment Council level. Without a minimum
package as is currently the case, employers are of the view
that they potentially carry an unlimited liability in the event
of retrenchment. In further discussions, it was also agreed
that those companies which can demonstrate inability to
pay the minimum package will be taken care of by a
proposed exemption clause.
In the spirit of facilitating recovery and competitiveness of
fledging companies, the right of the employer to engage
workers on fixed term contracts was agreed to. However,
the existing provisions to protect workers on fixed term
contracts are maintained. It was also agreed that employees
engaged on fixed term contracts for a period beyond a
specified period should enjoy the same rights and benefits
as permanent employees.
LABOUR LAW REFORM PRINCIPLES
PRINCIPLE 1- Streamlining Retrenchment procedures
2.0 Sections 12C and 12D of the Labour Act currently pose
challenges

to

the

smooth

administration

of

the

retrenchment process in that it takes too long to process


retrenchment

and

negotiations

are

protracted.

This

Principle therefore seeks to introduce a minimum package


for retrenchment whose quantum shall be determined at
4 | Page

Enterprise

level.

Where

deadlock

ensues

over

the

quantum, the dispute should be resolved through arbitration


and be settled within 30 days. In this regard it is therefore
proposed that the following sections of the Labour Act be
amended:2.1To

amend

retrenchment

Section
package

12C
as

to

provide

compensation

a
for

minimum
loss

of

employment. The quantum of the minimum package will be


determined at Enterprise level.
2.2 To amend Section 12C of the Labour Act to provide for
exemption

at Employment

Council

level

for

financially

incapacitated establishments. Where a party is aggrieved by


the decision of the Enterprise concerning exemption, an
appeal shall lie in the Employment Council.
2.3 To amend Section 12C of the Labour Act to provide for
specific factors to be considered by the Retrenchment
Board and the Minister when determining the terms for
exemption for those sectors without Employment Councils.
Some of the factors to be considered in applications for
exemption are ability to pay, length of service, relocation
and Statutory entitlements such as Notice Pay, Cash in Lieu
of leave and pension.
2.4 To amend Section 12C to cater for retrenchment
procedures for less than five employees. This is not
currently provided for in the Labour Act. This will cater for
small and medium enterprises.
5 | Page

2.5 To amend Section 12D to empower the Employment


Councils to determine matters arising from applications for
special measures to avoid retrenchments.

PRINCIPLE 2 - Right to Collective Bargaining


3.0 Section 65 (5) of the new Constitution of Zimbabwe
provides that every employee has the right to engage in
collective bargaining. These rights are also enshrined in ILO
Convention

No.

98

on

the

Right

to

Collective

Bargaining(1951), which the Government of Zimbabwe has


ratified. It is recommended that the following statutes be
amended:
The Labour Act [Chapter 28:01]
3.1 To amend Sections 25 and 74 of the Labour Act to
provide for Collective Bargaining to take into consideration
the needs of workers and their families, taking into account
the general level of wages in the country, the cost of living,
social security benefits, and the relative living standards of
other

social

requirements

groups,
of

economic

economic

factors,

including

development,

levels

the
of

productivity and the desirability of attaining and maintaining


a high level of employment as well as competitiveness, in
compliance with ZIM-ASSET.
3.2 The amendment of Section 25 and 74 of the Labour Act
will

be

6 | Page

followed

by

the

establishment

of

national

Productivity Institute to implement issues to do with wage


determinants inter alia, productivity related remuneration.
3.3 To amend Sections 25, 79 and 81, which give the
Minister Powers to direct the Registrar not to register an
agreement if any provision appears to the Minister to be
inconsistent with legislation or unreasonable or unfair. The
idea is to amend the section to remove the vagueness in the
law as to what constitutes unreasonable as this seems to
be giving the administrative authority boundless discretion.
Public Service Act [ Chapter 16:04 ]
3.3.1 To amend sections 19 and 20 on conditions of service
for members of the Civil Service to provide for collective
bargaining processes as provided for in section 203(1)(b) of
the Constitution which provides that Except for members of
the

security

services,

every

employee,

organization, trade union and employee

employers

or employers

organization has the right to engage in collective bargaining


.
3.3.2 To amend the section 19 and 20 of the Public Service
Act to align it to section 203(4) of the same Constitution
which states that in fixing salaries, allowances and other
benefits of members of the civil service the Commission
must act with the approval of the President, given on the
recommendation of the Minister responsible for finance after
consultation with the Minister responsible for the Civil
Service.
7 | Page

3.3.3 Collective bargaining like all rights enshrined in the


Constitution is not an absolute right and can be restricted in
terms of the law as provided in terms of the Constitution.
Section 86 (2) of the Constitution clearly provides that The
fundamental rights and freedoms set out in this chapter may
be limited only in terms of a law of general application and
to

the

extent

that

the

limitation

is

fair,

reasonable,

necessary and justifiable in a democratic society..


3.3.4. The Public Service Act to spell out bargainable issues
which shall be provided for in terms of section 204(1) (a)
which

are

conditions

of

service

including

salaries,

allowances and benefits. Section 199(3) of the Constitution


provides that an Act of Parliament must provide for the
organisation,

structure,

management.

Regulation

and

discipline of members of the civil service and therefore


these matters are not subjected to collective bargaining as
they are embedded constitutional obligations which the
employer cannot delegate.
3.5 To amend sections 13, 14, 16, 26 and 27 on consultation
and fixing conditions and the regulatory powers of the
Minister to provide for collective bargaining processes as
provided for in section 65 of the Constitution.

PRINCIPLE 3
Streamlining the Labour Dispute Settlement System

8 | Page

4.0 This Principle proposes the setting up of an autonomous


system to expedite resolution of labour disputes. This will
be achieved by amending the Labour Act to provide for the
setting up of an autonomous body funded by Government to
take

charge

of

conciliation

and

arbitration

of

labour

disputes. In such an arrangement, the Ministry responsible


for labour will have the role of providing policy direction and
general oversight over the administration of the body. The
objective is to enhance effective and expeditious resolution
of labour disputes.
Government is of the view that efficiency and effectiveness
in

dispute

settlement

can

be

achieved

through

administrative measures such as separation of roles of


labour inspection and dispute resolution.
4.1 In addition, the Principle seeks to propose the alignment
of the Labour Act to the Constitution to empower the Labour
Court to enforce its own judgments and have inherent
jurisdiction over all Labour disputes. There is a proviso that
this Principle shall come into force after administrative
structures to facilitate enforcement by the Labour Court are
put in place, in consultation with the Judicial Service
Commission.
4.2 This principle also seeks to repeal section 26 of the
Public Service Act that provides that members of the civil
service can appeal to the Labour Court if they are aggrieved
by a determination or penalty of a disciplinary authority.
Section 26 will be repealed to provide that any member who
9 | Page

is aggrieved by a verdict reached or penalty imposed on him


may appeal against such on a point of law only to the High
Court.
4.3 As principle members of the civil service must exhaust
all the internal remedies before approaching the High Court
on appeal. It has come to the attention of the Commission
that most members of the civil service no longer apply for
review to the Commission on their determination and
penalty imposed by the disciplinary authorities and proceed
straight to the Labour Court even on procedural issues that
can be rectified on review. As

result

Government

has

been financially prejudiced because of litigation costs. The


Act should then provide that prior to members appeal to
High Court; they must satisfy the Court that they have
exhausted all internal procedures as laid out in the Act and
the Public Service Regulations.
4.4 Finally, it is proposed that the Labour Act be aligned to
all the provisions of the Constitution which seek to empower
the Labour Court.
PRINCIPLE 4
Right to Collective Job Action
5.0 To amend the Health Service and Public Service Acts to
incorporate the right to collective job action with a view to
give effect to section 65(3) of the Constitution which
provides for the right to strike to all workers except
members of the security services as well as the provision
10 | P a g e

for making a law that provides for the restrictions to


maintain essential services.

Except for members of the security service, every


employee has the right to participate in collective job
action, including the right to strike, sit in, and withdraw
their labour and to take other similar concerted actions,
but a law may restrict the exercise of this right in order to
maintain essential services.
5.4 The Public Service will provide for the right to collective
job action in line with section 65 (3) which provides that the
right is not absolute and can be limited by law to maintain
essential service in the civil service.
5.3.2

Essential

service

in

the

strictest

sense

means

services, by whomsoever rendered and whether rendered to


Government or to any other person the interruption of which
would endanger the life, health and personal safety of the
Constitution of Zimbabwe. Public services of fundamental
importance can also be defined as essential.
5.4.3 The Public Service Act will provide that all internal
channels and set out procedure must be followed and
exhausted before engaging in any form of collective job
action.

PRINCIPLE 5
Equal pay for work of Equal value
11 | P a g e

6.0 The Constitution Amendment no. 20 in section 65 (6)


provides that, Women and men have a right to equal
remuneration for similar work.
In this regard, it is proposed that Section 2 of the Labour
Act be amended to clearly define equal pay for work of equal
value.

PRINCIPLE 6
Governance oversight over Employment Councils
7.0 Currently, Part VIII of the Labour Act gives autonomy to
Employment Councils without oversight from administrative
authorities. Employment Councils exercise a delegated
function that gives them the mandate to collect revenue
from all employers and employees in the sector to facilitate
their operations.
8.2 Consequent to this, it is proposed to amend Part VIII of
the Labour Act to provide governance and accountability. It
is proposed to provide for mechanisms which require
employment councils to report to the Registrar of Labour
Relations on financial and operational issues.

PRINCIPLE 7
Admission of New Members into Employment Councils

12 | P a g e

9.0 This principle seeks to amend Sections 56 and 58 of the


Labour Act to allow entry of other registered trade unions or
employers associations into existing Employment Councils
if they meet the requirements for membership. The Registrar
of Labour shall be empowered to deal with disputes arising
from applications of membership.

PRINCIPLE 8
Right to Organize
10.0 Section 65 (2) and (5) of the new Constitution of
Zimbabwe provides that every person has the right to form
and

join

trade

unions

and

employee

or

employers

organizations of their choice and participate in the lawful


activities of those unions and organizations.

These rights

are also enshrined in ILO Conventions no 87 (Freedom of


Association and Protection of the Right to Organize, 1948)
and 98 (Right to Organize and Collective Bargaining, 1949)
which the Government of Zimbabwe has ratified. This
principle necessitates the amendment of the following:
Labour Act [Chapter 28:01]
10.1 To repeal of section 55(2) (e) and (f) of the Labour Act
10.2 To amend section 24 of the Public Service Act and
section 16 of the Health Service Act to provide for the
registration process for associations/trade unions.
13 | P a g e

PRINCIPLE 9
Right to Maternity Protection
Section 65(7) of the Constitution provides that Women
employees have the right to fully paid maternity leave for a
period of at least three months.
11.0

Maternity

leave

provisions

for

female

employees

working in the Civil Service are currently enshrined in the


Public Service Regulations S.I. 1/2000 as follows:
(1)

Maternity leave may be granted for a period of ninety

days on full pay to a woman member who has served for at


least one year.
The Labour Act provides that, A female employee shall be
entitled to be granted a maximum of three periods of
maternity leave with respect to her total service to any one
employer during which she shall be paid her full salary.
11.1 The right to maternity protection is still subject to
limitations which require that this right is entitled to a
female employer who has worked for a period of not less
than one year.
11.3 It must be noted however, that this is not an absolute
right but should be subject to limitations as provided under
section 86 (2) of the Constitution which reads;

14 | P a g e

The fundamental rights and freedoms set out in this


chapter may be limited only in terms of a law of general
application and to the extent that the limitation is fair,
reasonable,

necessary

and

justifiable

in a democratic

society The limitations cited above are to be maintained


by the State in light of the Constitutional provisions until
such a time that Government puts in place mechanisms to
lessen the burden on the Employer.

PRINCIPLE 10
Protection against Forced or Compulsory Labour
12.0 Section 55 of the Constitution provides that no person
may be made to perform forced or compulsory labour. This
right is also enshrined in Convention 105 on Abolition of
Forced Labour (1959) and Convention 29 on Forced Labour,
(1932) which the Government of Zimbabwe has ratified.
12.1 In this respect, it is proposed to repeal Section 4A (2)
(a) (d) of the Labour Act to clearly provide for the
prohibition of forced or compulsory labour. The mentioned
provisions seem to infer that some forms of forced labour
could be permissible under certain conditions.

PRINCIPLE 11
Protection against Child Labour

15 | P a g e

13.0 This principle proposes to amend section 11 of the


Labour Act

To provide a clear and concise definition of child labour

To set 16 years as the minimum age of admission into

employment

in

the

Labour

Act

and

synchronize

with

provisions in the Manpower Planning and Development Act


and the Childrens Act.
PRINCIPLE 12
Honouring of Fixed Term Contracts
14.0 Current labour laws give a wide array of contracts of
employment that the employer can choose from when
engaging workers. These include fixed term contracts. The
current laws appear conducive to enterprise viability and
decision making. The concern has been on perceived abuse
of fixed term contracts whereby employers perpetually hold
employees on these contracts in order to avoid obligations
that come with permanent employment such as longer
notice periods on termination, pensions, and retrenchment
packages. To curtail the abuse of fixed term contract work
the principle introduces the concept of affording contract
workers similar benefits to those of permanent employees
after a prescribed period of continuous service.
14.1 Under the same principle, Employment Councils are to
be empowered to set a limit or (cap) over the period upon
which a fixed term contract must be renewed and a contract
16 | P a g e

that exceeds the agreed cap will be deemed a contract


without limit of time.

OTHER

ISSUES

WHICH

EMANATED

DURING

CONSULTATIONS WITH SOCIAL PARTNERS


Liquidation or insolvency
15.0 The social partners on the side-lines of the Labour law
deliberations, considered other hindering laws as cited
below,

which

undermine

the

employees

contributions

towards the growth of an undertaking prior to liquidation or


insolvency. It has been observed that during liquidation/
insolvency of companies, the priorities of workers wages
and benefits are not accorded the value they ought to be.
The social partners discussed this issue at length and
agreed that a recommendation be placed before Cabinet for
the amendment of the Insolvency Act [ Chapter 6:04] to
prioritize the welfare of

workers during insolvency or

liquidation.
Procedure for dismissal
16.0 During the working party of officials meeting on 26th
August 2014, the issue of dismissal provisions was raised,
with members citing that it has proven difficult and costly to
dismiss an employee under the current provisions. Whilst
dismissals

are

provided

for

in

Employment

Codes

of

Conduct, Principle 3 which seeks to expedite the dispute


17 | P a g e

resolution

system

will

take

care

of

going

concerns

regarding dismissal.
CONCLUSION
18.0 The harmonisation process of the labour laws which
has consequently led to the above thirteen (13) principles
have been influenced by the new Constitution of Zimbabwe
(No. 20) Act 2013, the Economic Blueprint ZIM-ASSET and
the ratified International Labour Conventions. This has been
achieved through extensive tripartite consultations. It is
therefore

envisaged

that

conducive

labour

market

environment through the proposed harmonised Labour Law


amendments, will ultimately contribute to economic growth
and empowerment, all in the spirit, purpose and intent of
ZIM-ASSET.

RECOMMENDATION
19.0 The above Harmonized Labour law Principles are
hereby submitted to Cabinet for consideration and approval.

Hon. N.T. Goche (MP)


MINISTER OF PUBLIC SERVICE, LABOUR AND SOCIAL WELFARE

18 | P a g e

You might also like