No severance pay for resignations or misconduct dismissals – Labour Commissioner

The Labour Commissioner outlined that severance pay is calculated at three months’ salary for each year of service, while redundancy pay is typically two months’ salary per year.

He noted that workers need to understand the difference between the two, especially in cases of restructuring, downsising or company closures.

Muntengwa also addressed concerns among drivers and other workers both locally and abroad regarding gratuity, emphasising that employees on permanent and pensionable terms are generally not entitled to gratuity, unless it is specifically included in their employment contract or negotiated through a collective agreement.

“If gratuity is not in the contract, and there’s no provision in a collective agreement, then an employee is not entitled to it. However, some unions use their negotiating power to secure gratuity terms for their members and in such cases, the collective agreement stands.”

The commissioner further urged workers to pay close attention to the details in their contracts and encouraged unions to play a proactive role in negotiating clear and fair termination benefits.