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'Supreme Court ruling in line with economic trends'

by Staff reporter
24 Jul 2015 at 09:32hrs | Views
A labour expert has said the Supreme Court ruling that allows firms to terminate contracts of employment upon issuing a three months' notice addresses concerns that employers have had for a long time and an attempt to reverse this could be "catastrophic".

Industrial Psychology Consultants managing consultant Memory Nguwi said it would not be ideal to have an immediate reversal of the court ruling as struggling firms need to streamline operations through headcount reduction.

Already, over 1 000 people have lost their jobs since the court ruling last Friday.

Zimbabwe's labour laws have been viewed as particularly rigid, particularly in respect of retrenchments - which have become a necessary evil in view of the under-performing economy.

Meanwhile, the government yesterday resolved to amend the Labour Act expeditiously to stem inconsistencies in the labour market which have seen companies sacking employees willy-nilly and almost empty-handed on the basis of a recent Supreme Court judgment.

Public Service, Labour and Social Services Minister Prisca Mupfumira said that while the Supreme Court judges were "correctly and appropriately" guided by the law, companies should exercise maximum restraint in terminating workers' contracts.

Mupfumira said Government had looked at the labour laws and concluded that they needed amendment in the shortest possible time.

Source - the herald