A HARARE vehicle dealer, Clover Leaf Motors, has been ordered to reinstate or pay damages in lieu of reinstatement to its 23 former employees who were unlawfully dismissed.
BY CHARLES LAITON
Sometime in October last year, the former employees approached the Ministry of Labour challenging termination of their employment on three months’ notice, arguing they ought to have been retrenched as opposed to getting fired since the company had decided to cut staff.
In his ruling, labour officer Max Sibilika said it was clear Clover Leaf Motors partly denied it had committed an unfair labour practice as alleged and, thus, viewed its conduct as trite at law.
However, Sibilika said the fired employees also partly viewed the reasons given by their employer as one which required the retrenchment process to be followed in terms of section 12C of the Labour Act.
“After analysis of parties’ submissions and in light of the Labour Act, it is clear from section 2, which defines retrenchment in relation to employees, that it is done in some instances to downsize when there are performance problems,” Sibilika said.
“In this case, this is the scenario at hand to which respondent (Clover Leaf) wanted to cut on staff and was, therefore, supposed to be guided by the provisions of section 12C…I, therefore, concur with the claimant (workers) that the retrenchment process ought to have been initiated as opposed to termination on notice. The respondent is in breach of not following the retrenchment process.”
He ruled: “It is hereby ordered that the complainants, that is, Richard Mwanza and 22 others, be reinstated without loss of salaries and benefits. If reinstatement is no longer tenable, parties may agree on payment of damages in lieu of reinstatement, if no agreement parties may approach the labour officer for quantification of damages.”
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In the termination letters given to the employees in August last year, Clover Leaf Motors Group cited low business volumes triggered by a poor economic environment.
