UNIT6 EMPLOYERS’ ORGANISATION

Definition of Employers’ Organisation

An ‘Employers Organisation’ refers to any group of employers registered under the Industrial
and Labour Relations Act whose principle objectives are the representation and promotion of
employers interests and regulation of relations between employers and employees or between
employers and trade unions and includes a federation of employers’ of organisations.

Formation

Every employer’s organisation must be registered with the Labour Commission with six months
from the date of its formation.1 If the Commissioner refuses to register an organisation, he must
dissolve it within six months from the date of notification of such refusal. If the organisation is
not duly registered or dissolved within the prescribed period, every officer of the organisation is
guilty of an offence and liable to a fine.2 The procedure on registration is that an application for
registration as an employers’ organisation, in the prescribed form, is submitted to the
Commissioner. The application for registration must be lodged by no less than five members of
the proposed employers’ organisation or such lesser number as the Commissioner in his
discretion may accept to form an employers’ organisation. The application must be accompanied
by two duly certified copies of the constitution of the proposed employers’ organisation and any
other information or documents as may be required by the Commissioner by notice in writing. 3

The Act prohibits an employers’ organisation or any of its officers from performing any act in
furtherance of the objects for which it has been formed unless it is registered under the Act. 4
Contravention of the Act in this respect attracts the penalty of a fine and, additionally,
prohibition of every officer involved from holding office in any other employers’ organisation
for a period determinable by the court.5

1
Section 36 (1)
2
Section 37 (3)
3?
Section 40
4
Section 39 (1)
5
Section 39 (2)
At the request of the employers’ organisation, a certificate of registration may be cancelled by
the Commissioner with the approval of the Minister upon submission of the request. Other
instances when a certificate of registration may be cancelled are if the certificate of registration
has been obtained by fraud or mistake or if the organisation has willfully violated any of the
provisions of the Act.6 However, before the Commissioner cancels a certificate of registration of
an employers’ organisation due to fraud, mistake or willful violation of the provisions of the Act,
he must give notice to the employers’ organisation concerned, specifying the grounds upon
which he intends to rely for the intended cancellation at least three months before the
cancellation. The organisation concerned may be then make representations to the Commissioner
in opposition to the grounds contained in the notice. After receipt of the representations and after
the expiration of the three months’ notice, the Commissioner may cancel the certificate of
registration and notify the organisation concerned accordingly.

Any person aggrieved by the refusal of the Commissioner to register an employers’ organisation
or by the cancellation of a certificate of registration, may appeal to the Industrial Relations Court
within thirty days of the notification of refusal, decision or cancellation.7 The Court may set
aside the decision of the Commissioner refusing the registration or the employers’ organisation
or cancellation of certificate, dismiss the appeal or make any order as it may consider appropriate
in the circumstances.8

Rights of Employers

As indicated in Chapter V, the right of the employers to organise and associate, like those of
employees, is assured under the Freedom of Association and Protection of the Right to organise
Convention 1948 to which Zambia is a signatory and also enshrined in the Republican
Constitution. Section 37 of the Industrial and Labour Relations Act also has provision for the
rights of employers. These are the rights to participate in the formation of, and join, an
organisation and to participate in its lawful activities. Hence no law should prohibit any

6
Section 46 (1)
7
Section 47 (10
8
Section 47 (4)
employer from being or becoming a member of any organisation lawfully in being or subject the
employer to any penalty by reason of the employers’ membership of any employers’
organisation. Further, no person has the right to impede, interfere with, or coerce an employer in
the exercise of his rights under the Act. No person is permitted to subject an employer to any
form of discrimination on the ground the employer holds office or is not a member of any
organization. Further, no person is permitted to subject another person to any form of
discrimination on the ground that the person holds office in an organization or impede or
interfere with the lawful establishment, administration or functioning of an employers’
organization.

Employees are prohibited from ceasing or suspending doing their work for their employer on the
ground that the employer is or is not a member or holds or does not hold office in an employers’
organization or his appeared as a complainant or wishes or has given evidence in any
proceedings before the Industrial Relations Court or any other court or is or has become entitled
to any advantages, award, benefit or compensation in consequence of a decision made by the
Industrial Relations Court or any other court in favour of the employer, or in favour of an
employers’ organisation or class or category of employers to which such employer belongs,
either against such employer or against the trade union or class or category of employers to
which such employee belongs or against any other person. 9

Any person who contravenes the provisions of the law in the above respect is guilty of an
offence and liable to a fine and in addition, may be prohibited from holding office in a trade
union for such duration as the court may determine.10

Legal Personality of Employers’ Organisation

An employers’ organisation, just like a trade union, has no legal personality, hence can only sue
or be sued through its trustees.11 The provisions of section 25, 26 and 27 of the Act relating to
vesting of all real and personal property belonging to a trade union; actions by or against trustees

9
Section 37 (2)
10
Section 37 (3)
11
Section 54
of trade unions and limitation of liability of trustees of trade unions, respectively, apply mutatis
mutandis12 to employers’ organisations.13

Amalgamation of Employers’ Organisations

Two or more employers’ organisation desiring to amalgamate may do so but the new
organisation formed must be registered in accordance with the Act. Any legal proceedings in
respect of any rights or obligations of the organisation that has amalgamated with another may
be commenced or be continued, if pending, by or against the organisation formed as a result of
the amalgamation.14

Federation of Employers’ Organisations

A ‘Federation of Employers’ Organisations’ is any organisation whose membership consists

wholly or mainly of registered employers’ organisations or individual employers who are not
members of any employers’ organisation and whose principal objectives include the regulation
of relations between employers’ organisation or between employers’ organisations and trade
unions and federations of trade unions.15

The Zambia Federation of Employers established by and registered in accordance with section
56 of the repealed Industrial Relations Act, continues to exist as an unincorporated body and is
deemed registered as a Federation of Employers’ Organisation under the Act. All provisions
relating to the constitution of the Federation of Trade Unions, relationship between the
Federation of Trade Unions and the unions, apply, mutatis mutandis, to the federation of the
Employers’ Organisations and the Employers’ Organisations.16

Dissolution of Employers’ Organisations

12
With the necessary modifications
13
Section 53 and 54
14
Section 49 (2)
15
Section 3
16?
Section 56 and 57, respectively
An employers’ organisation which desires to be dissolved must submit to the Commissioner a
notice of intention to dissolve the organisation signed by all members of the executive of the
organisation together with an authenticated copy of the minutes and resolution passed in making
the decision. If the organisation is affiliated to the Federation of Employers’ Organisations, a
copy of the notice should be given to such Federation. The Federation is at liberty to comment on
the intended dissolution of an employers’ organisation within fourteen days of receipt of the
notice. If the Commissioner is satisfied that the intended dissolution is in accordance with the
organisation’s constitution, he may approve the dissolution which is effective from the date the
Commissioner accords his approval.

The reader should note that even though by the wording of section 50 (2) of the Act,17it would
appear that the Commissioner has the discretion to decline to approve the dissolution of an
employers’ organisation even if the intended dissolution is in accordance with the organisation’s
constitution, the true position would be that where an organisation has met all the conditions
required to be met before a dissolution can be accepted by the Commissioner, the Commissioner
would have no justification to refuse to dissolve the organisation. He would under those
circumstances, be under a legal duty to dissolve the organisation, the organisation concerned
could have recourse to the Industrial Relations Court for redress under section 85 of the Act.

Once the Commissioner has granted his approval to the dissolution of an employer’s
organisation, he must notify his approval to the organisation concerned and the federation of
Employers’ Organisations, if the employers’ organisation is affiliated to the Federation. 18

The provisions in section 50 (4) (a) and (b) relating to the vesting of the property of an
employers’ organisation and winding up of affairs of a dissolved employers’ association and
liquidator appointed by the Commissioner for or respect of anything done or omitted to be done
by him in the performance of the functions under the Act, are similar to the provisions on the
same matters as they apply to trade unions.19

17
Which reads as follows: ‘If the Commissioner is satisfied that the intended dissolution of an organisation is in
accordance with its constitution he may approve the dissolution and the dissolution shall be effective from the
date the Commissioner accords his approval.’
18
Section 50 (3)
19
Section 16 (5)