The Labour Amendment Act: Implications for business

06 Oct, 2023 - 00:10 0 Views
The Labour Amendment Act: Implications for business Arthur Marara

eBusiness Weekly

Arthur Marara

This is Part 1 of “The Labour Amendment Act, 2023: Implications for Business”

The laws on employment are constantly changing, and it is important to be aware of the implications of the same on your business and organisation.

The Labour Amendment Act was gazetted recently, which means that it’s now law. Every employer needs to take time to read and thoroughly understand the major changes that are being brought by this amendment. There are several areas that the amendment has changed but I will pick some areas of interest for discussion so that you can also see how best you can align your affairs as an organisation.

The objective of the Amendment Act

The amendments to the Act were made to align the Labour Act with Section 65 of the Constitution of Zimbabwe and the International Labour Organisation (ILO) Conventions ratified by Zimbabwe.

International conventions have to be domesticated in order for them to be biding. They do not automatically become part of our law. In order to align with section 65 of the Constitution, the Amendment Act seeks expound on the rights to fair and safe labour practices and standards.

The Amendment also sought to promote ease of doing business principles through streamlining and promoting timely conclusion of processes, particularly the labour dispute settlement and retrenchment processes.

Every investor has a keen interest in knowing the employment laws in order for them to make a decision on whether or not to invest in a particular economy. The Act also takes care of emerging issues in the world of work such as labour broking, violence and harassment at the work place and emerging forms of employment relationships with a view to closing the lacuna in the existing legislation thus entrenching fair labour standards contemplated in section 65 of the Constitution.

Section 4: Equal Pay

This section imposes a responsibility on employers to ensure equal pay for male and female employees who perform work of comparable value. The newly introduced provision expands the application of the principle of equal pay for work of equal value, aiming to address occupational sex segregation within the labour market.

The importance of ensuring equal pay for male and female employees who perform work of comparable value lies in promoting fairness, equality, and gender equity in the workplace. There are various reasons why this is important:

Gender Equality: Paying male and female employees equally for comparable work helps to address gender disparities and promotes gender equality. It recognises that individuals should be compensated based on their skills, qualifications, and job responsibilities rather than their gender.

Fairness and Justice: Equal pay ensures fairness and justice in the workplace. It prevents discrimination based on gender and treats all employees fairly, regardless of their gender identity. Employees should receive equitable compensation for their contributions, irrespective of their gender.

Retention and motivation: Offering equal pay for comparable work can contribute to higher employee retention rates and increased motivation. When employees feel valued and fairly compensated, they are more likely to be satisfied with their jobs, remain loyal to the organisation, and perform at their best.

Talent acquisition: Organisations that prioritise equal pay have a competitive advantage in attracting top talent. Job seekers, especially those who value diversity and inclusion, are more likely be attracted to companies that demonstrate a commitment to pay equity.

Economic benefits: Achieving pay equity can have positive economic impacts. When women are paid fairly, it can contribute to reducing the gender wage gap, increasing women’s economic empowerment and boosting overall economic growth.

In many countries, there are laws and regulations in place to ensure pay equity and prohibit gender-based wage discrimination. Complying with these laws is not only ethically responsible but also helps organisations avoid legal consequences and reputational damage.

The Amendment thus brings the labour laws in Zimbabwe at par with other jurisdiction on this particular issue. Ensuring equal pay for male and female employees performing work comparable value is crucial for creating inclusive and equitable workplaces, promoting gender equality, and fostering a fair and just society.

Section 2: Gender based violence and harassment

Section 2 has to be read with Section 5 (which amends Section 6 of the Act) and 6 (which amends Section 8 of the Act) of the Amendment of the Amendment in order for one to gain greater clarity.

Section 2 amends Section 2 of the Act by including the definitions of “gender-based violence and harassment” and “violence and harassment”.

The addition of these definitions expands the protection given to employees from the actions of their employers or other employees. Gender-based violence and harassment in terms of the Amendment means violence and harassment directed at persons because of their sex or gender, or affecting persons of a particular sex or gender disproportionately and includes sexual harassment.

“Violence and harassment” in the context of section 6 (3) and section 8 refers to a range of unacceptable behaviours and practices, or threats thereof, whether a single occurrence or repeated, that aim at, result in, or are likely to result in physical, psychological, sexual or economic harm, and includes gender-based violence and harassment.

The Act now imposes criminal sanction for violation of Section 5 of the Amendment Act. The offence specified in terms of subsection (3) attracts a fine not exceeding level 12 or to imprisonment for a period not exceeding ten years or to both such fine and such imprisonment. Violation of Section 6 of the Amendment Act also constitutes an unfair Labour Practice by an employer. This means an employee is entitled to the Section 93 remedies.

Human Capital Executives for companies and organisations need to take time to review and align your internal policies so that they align with the Act.

There is also need for training of the staff so that they are fully aware of the law and the obligations upon all of them in so far as these issues are concerned. The Labour Act simply provides for minimum standards, meaning as an employer you can settle for even high standards.

LEGAL DISCLAIMER: The material contained in this post is set out in good faith for general guidance in the spirit of raising legal awareness on topical interests that affect most people on a daily basis. They are not meant to create an attorney-client relationship or constitute solicitation. No liability can be accepted for loss or expense incurred as a result of relying in particular circumstances on statements made in the post. Laws and regulations are complex and liable to change, and readers should check the current position with the relevant authorities before making personal arrangements.

Arthur Marara is a practising Attorney, bestselling author, human capital trainer, business speaker, thought leader, law lecturer, consultant, coach, legal proctor (UZ). He has vast experience in employment law and has worked with several corporates, and organisations. He is also a notary public and conveyancer. He is passionate about promoting legal awareness and access to justice. He writes in his personal capacity. You can follow him on social media (Facebook Attorney Arthur Marara), or WhatsApp him on +263780055152 or email [email protected]

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