Terminations - Payments

PROCEDURE

See this link for information on how to Discharge an employee.  In the final pay run make sure the employee and/or employer settles all outstanding loans, gratuities, etc.

Notice Period

According to the current labour regulations when an employee wishes to resign, he/she should give three calendar months' notice.  If less than three months' notice is given by one of the parties, then that party theoretically owes the other money for the time difference. This is called Notice Pay.

Retrenchment

If an employer has reason to retrench then an application to do so should be made to the Ministry of Labour stating the amounts to be paid to employees. Use the 'Retrenchment Calculator', which can be accessed under the 'Resources' menu.  Download the utilityas a download from the Belina website. provided by Belina The employer should only proceed to retrench after the Ministry has approved. 

Cash in Lieu of Leave

If the employee has any leave days accrued these should be paid to the employee in the form of Cash in Lieu of Leave.

Loans

If there are any loans outstanding, these should be deducted in full.

Gratuity

NEC's stipulate that a gratuity amount be paid to employees on termination using a sliding scale based on years of service. The NEC for the Commercial Sectors, for example, stipulates: 

"Gratuity According to Section 31 of the NEC for the Commercial Sectors of Zimbabwe regulations employees, who have completed ten (10) or more years of continuous service are entitled to receive a once off payment of gratuity if they, leave the employ of the organization, or die."

Employers are able to pay a higher gratuity amount than that stipulated and can also pay a gratuity to those employees that may not have reached the threshold number of years.