Companies accused of theft over statutory deductions

The Zimbabwe Congress of Trade Unions (ZCTU) has accused employers of engaging in "outright theft" by deducting statutory and third-party payments from workers' salaries but failing to remit them to the relevant authorities.

The deductions - which include pension contributions, medical aid, National Social Security Authority (NSSA) payments, and trade union dues - are legally mandated, yet many employers allegedly withhold the funds, leaving employees unable to access benefits when needed despite the deductions appearing on their payslips.

ZCTU secretary-general Tirivanhu Marimo said the practice, which has become widespread in both the public and private sectors, constitutes a serious violation of labour and criminal laws.

"Let it be made clear: this conduct is outright theft from workers. It is criminal, unethical, and a gross abuse of trust," Marimo told businessdigest. "These are not optional deductions; they are legal obligations meant to secure the welfare and future of employees. When employers withhold such remittances, they are robbing workers of their hard-earned benefits and placing their social and financial security at risk."

He said the union was demanding that the government and relevant authorities act decisively against errant employers.

"We condemn this behaviour in the strongest possible terms and demand that authorities take decisive action. Offending employers must face prosecution, heavy penalties, and, in serious cases, suspension of their operating licences. Workers must not be made to carry the burden of corporate irresponsibility," he said.

Marimo noted that a lack of transparency has worsened the problem, as many affected employees are denied payslips or any documentation showing deductions.

"The first line of defence is transparency; every worker must be issued with a payslip that clearly shows their deductions. Most of the workers who fall victim to non-remitted deductions are denied payslips or any proof of what is being deducted. That must stop," he added.

ZCTU said it is intensifying inspections through the National Employment Councils (NECs) and pressing for stronger penalties against defaulting employers.

"Government must stop treating these cases with kid gloves. Non-remittance is not an administrative lapse; it's a criminal offence. We are pushing for amendments to strengthen enforcement, including naming and shaming habitual offenders and ensuring that those responsible are held personally liable," Marimo said. "Workers' money must never be used to finance company cashflow problems."

The scale of the problem is also evident in the pensions sector. According to the Insurance and Pensions Commission (IPEC), contribution arrears rose by 18.84% to US$110.43 million in the second quarter of 2025, reflecting deepening employer defaults.

Cuthbert Munjoma, IPEC's pensions and life director, said the regulator is actively pursuing delinquent employers to recover the funds owed.

"Defaulting employers have been engaged, and payment plans have been submitted, which the commission is monitoring," Munjoma said.

Labour experts warn that unless enforcement mechanisms are tightened, the growing non-remittance crisis could collapse vital social protection systems and leave thousands of workers destitute in retirement or during illness.