Effortless Hiring in Zimbabwe

Employment Contracts

• Employment relationships in Zimbabwe are governed by the Labour Act [Chapter 28:01]. While written contracts are not explicitly mandated for all employment types, they are highly recommended to outline:
• Job responsibilities.
• Compensation.
• Working hours.
• Other essential terms.
• Employers must inform employees in writing within seven days from the start of employment about various aspects, including daily working hours and remuneration components.

Probationary Period

• The Labour Act allows for a probationary period during which either party can terminate the employment with notice. The typical notice period during probation is:
• One week for casual or seasonal work.
• Two weeks for other employment types.

Payroll Frequency

• Employees are generally paid on a monthly basis, with the specific pay date agreed upon in the employment contract.

Minimum Wage

• Minimum wages are set through National Employment Councils (NECs) for various industries and are periodically reviewed to align with economic conditions.

Overtime

• Standard working hours are typically 8 hours per day or 48 hours per week. Overtime is compensated at rates specified in the employment contract or relevant NEC agreements, often at 150% of the regular pay rate.

Employee Contributions

1. Pension Scheme: Employees contribute approximately 3.5% of their gross salary to the National Social Security Authority (NSSA) pension scheme.

Employer Contributions

1. Pension Scheme: Employers also contribute approximately 3.5% of the employee's gross salary to the NSSA pension scheme.
2. Social Security Contributions: Employers contribute to various social security funds supporting employee benefits.

Income Tax

• Zimbabwe employs a progressive income tax system with rates ranging from 0% to 40% depending on income levels. Employers are responsible for withholding the appropriate amount from employees' salaries and remitting it to the Zimbabwe Revenue Authority (ZIMRA).

Types of Leave in Zimbabwe

1. Annual Leave

• Employees are entitled to 30 days of paid annual leave after completing one year of continuous service. Weekends and public holidays are generally excluded from this count.

2. Public Holidays

• Zimbabwe observes several public holidays each year. If an employee is required to work on a public holiday, they are entitled to compensation as defined by their employment contract.

3. Sick Leave

• Employees are entitled to up to 90 days of paid sick leave per year. If sick leave exceeds this period, the employer may consider medical termination for the employee.

4. Maternity Leave

• Female employees are entitled to 98 days of maternity leave with full pay. The Labour Amendment Act of 2023 removed the qualifying service period and limits on the number of times maternity leave can be taken with one employer.

5. Paternity Leave

• Zimbabwe's labor laws do not provide a statutory entitlement to paternity leave; however, male employees may utilize special leave for personal reasons affecting their immediate family, such as the birth of a child, allowing for up to 12 calendar days, subject to employer approval.

Social Security Benefits

• Contributions to the NSSA pension scheme provide employees with retirement benefits, disability benefits, and survivor's pensions.

Health Insurance

• While not mandated by law, some employers offer health insurance as part of the employment package.

Notice Period

• The required notice period depends on the duration of the employment contract:
• 3 months for contracts without a fixed term or for periods of two years or more.
• 2 months for contracts between one and two years.
• 1 month for contracts between six months and one year.
• 2 weeks for contracts between three and six months.
• 1 day for contracts less than three months or for casual/seasonal work.

Severance Pay

• Severance pay is mandatory in cases of retrenchment, typically calculated as two weeks' salary for each year of service. The Labour Amendment Act of 2023 emphasizes the employer's obligation to pay this package upon retrenchment.

Dismissal Procedures

• Employers must have justifiable grounds for dismissal, such as misconduct or incapacity. Specific procedures must be followed, including conducting disciplinary hearings and providing the employee an opportunity to defend themselves.