PART D Employment law

1. Introduction to employment law

2. Distinction between contract of service and contract for services
3. Types of employment contracts under the Employment Code Act No. 3 of 2019
4. Vicarious liability
5. Dismissal and redundancy

Introduction to Employment Law in Zambia

Employment law in Zambia is designed to regulate the relationship between employers
and employees, ensuring fairness, justice, and adherence to labor standards. It provides
a legal framework for issues such as employment contracts, working conditions, wages,
termination, and the rights of workers and employers. The key sources of employment
law in Zambia include the Constitution of Zambia, statutory laws, international labor
conventions ratified by Zambia, and common law principles.

Key Legislation Governing Employment

1. The Employment Code Act, No. 3 of 2019: This is the primary piece of
legislation governing employment in Zambia. It consolidates various
employment laws and addresses critical aspects such as employment contracts,
conditions of employment, dispute resolution, termination, and disciplinary
actions. The Act sets minimum standards for working hours, leave entitlements,
wages, and occupational health and safety. It also provides mechanisms for
protecting vulnerable workers, such as domestic workers and casual employees.

2. The Industrial and Labour Relations Act, No. 27 of 1993: This Act focuses on
the regulation of industrial relations, including the rights of employees to join
trade unions, collective bargaining, dispute resolution, and industrial actions
such as strikes. It also establishes the Industrial Relations Court, a specialized
court responsible for handling labor disputes.

3. The Minimum Wages and Conditions of Employment Act, Cap 276: This Act
provides for the establishment of minimum wages and basic conditions of
employment. The Minister of Labour is empowered to set sector-specific
minimum wage rates and conditions through statutory instruments.

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4. The Factories Act, Cap 441: This law governs the health, safety, and welfare of
employees in factories. It sets out the duties of employers in providing a safe
working environment and outlines the measures that must be taken to prevent
accidents and occupational hazards.

5. The Workers' Compensation Act, No. 10 of 1999: This Act provides a framework
for compensating workers who suffer injuries or diseases in the course of
employment. It establishes the Workers' Compensation Fund, which is
responsible for managing claims and providing financial support to injured
workers or their dependents.

Fundamental Rights and Protections

The Zambian employment law framework guarantees several key rights and
protections for employees:

 Non-Discrimination: Employees are protected from discrimination based on

race, gender, ethnicity, religion, disability, or any other protected status. Equal
pay for equal work is also a requirement.

 Right to Fair Pay: Employers must adhere to minimum wage standards and
provide fair remuneration for work performed. Payment of wages must be made
promptly, and deductions are strictly regulated.

 Working Hours and Overtime: The law prescribes normal working hours,
usually not exceeding 48 hours per week. Overtime work must be compensated
at a premium rate.

 Leave Entitlements: Employees are entitled to various types of leave, including

annual leave, sick leave, maternity leave, and compassionate leave. The
Employment Code Act specifically outlines these entitlements and the conditions
under which they are granted.

 Protection Against Unfair Dismissal: Dismissal must be fair and lawful, with
the employer required to provide valid reasons. Termination procedures are
clearly defined to protect workers from unfair dismissals and to allow for proper
notice periods or payment in lieu of notice.

Employment Contracts

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The law recognizes both written and oral employment contracts, but it strongly
emphasizes written contracts for clarity and legal enforcement. A written contract must
outline key terms such as job description, salary, working hours, leave entitlements, and
conditions for termination.

Dispute Resolution

Labor disputes are resolved through mechanisms such as conciliation, mediation, and
arbitration. The Industrial Relations Court plays a vital role in adjudicating
employment disputes. Employees who believe their rights have been violated can also
seek recourse through the Ministry of Labour.

Conclusion

Employment law in Zambia aims to balance the rights and obligations of both
employees and employers. Through its regulatory framework, the law promotes social
justice, ensures fair treatment in the workplace, and provides mechanisms for the
resolution of disputes. The Employment Code Act of 2019 marks a significant milestone
in modernizing labor law in Zambia, reflecting both international labor standards and
the country’s commitment to improving worker welfare.

Important provisions in the employment code

The Employment Code Act, No. 3 of 2019 is a comprehensive piece of legislation that
governs employment relations in Zambia. It consolidates and modernizes various labor
laws, addressing critical aspects of the employer-employee relationship. Here are some
of the most important provisions in the Employment Code:

1. Employment Contracts

 Written Contracts: Section 20 mandates that employers provide employees with

written contracts within 30 days of employment, outlining terms such as job
description, wages, working hours, leave entitlements, and termination
conditions.

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 Types of Contracts: The Act distinguishes between permanent, fixed-term, and
casual contracts, each with its own regulations regarding duration, renewals, and
termination.

2. Prohibition of Casualization

 Casual Employment: Section 21 prohibits employing a person as a casual worker

for more than 6 months. After this period, the employee is automatically deemed
to be on a fixed-term contract, entitling them to the full benefits of permanent
employment.

3. Wages and Salaries

 Minimum Wage: Section 45 ensures that no employer pays below the statutory
minimum wage set by the Minister of Labour through statutory instruments.

 Payment of Wages: Section 47 requires that wages be paid regularly (weekly, bi-
weekly, or monthly) and prohibits deductions without written consent from the
employee, except for statutory deductions.

4. Working Hours and Overtime

 Standard Working Hours: Section 69 specifies that normal working hours shall
not exceed 48 hours per week for most workers, with exceptions made for certain
sectors.

 Overtime Pay: Section 71 mandates that any hours worked beyond the standard
hours must be compensated at a premium rate. The rate must be at least one and
a half times the normal hourly rate.

5. Leave Entitlements

 Annual Leave: Section 36 entitles employees to at least two days of paid leave for
every month worked, or 24 days annually.

 Sick Leave: Section 41 grants employees paid sick leave for up to 26 working
days in any given year, with a medical certificate required after three consecutive
days of illness.

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 Maternity Leave: Section 40 entitles female employees to 14 weeks of maternity
leave, of which at least 6 weeks must be taken after childbirth. During maternity
leave, the employee is entitled to full pay.

 Paternity Leave: Male employees are entitled to at least five days of paternity
leave.

6. Termination and Dismissal

 Termination Notice: Section 57 sets out the requirements for termination notice
periods, which range from one week to three months depending on the length of
employment and the type of contract.

 Summary Dismissal: Section 61 allows for summary dismissal (termination

without notice) in cases of serious misconduct, such as theft, fraud, or gross
negligence.

 Severance Pay: Section 63 outlines that employees who are terminated after
having worked for at least two years are entitled to severance pay unless they are
dismissed for misconduct or voluntarily resign.

7. Protection from Discrimination

 Non-Discrimination: Section 5 prohibits discrimination based on gender, race,

tribe, religion, disability, social status, marital status, political opinion, or any
other protected status. Equal pay for equal work is also emphasized.

 Equal Opportunities: Employers are required to promote equal opportunities in

hiring, training, and promotions, ensuring that marginalized groups are not
unfairly treated.

8. Health and Safety

 Occupational Health and Safety: Sections 91 and 92 oblige employers to ensure

a safe working environment. Employers must provide personal protective
equipment, implement safety measures, and ensure that workers are trained on
safety protocols.

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 Medical Examinations: Section 89 allows for pre-employment medical
examinations to determine whether an employee is fit for certain work but
prohibits these exams from being used to discriminate against potential workers.

9. Employment of Children and Young Persons

 Child Labor Prohibition: Section 12 strictly prohibits employing children below

the age of 15 in any capacity. Employment of young persons (15-18 years old) is
permitted under conditions that safeguard their health, safety, and well-being.

 Hazardous Work: The Act prohibits young persons from engaging in hazardous
work that may affect their physical, mental, or moral well-being.

10. Dispute Resolution

 Grievance Handling: Section 78 requires employers to have internal procedures

for addressing grievances. Employees must exhaust internal remedies before
taking a dispute to external mediation or arbitration.

 Industrial Disputes: Section 86 empowers the Ministry of Labour to mediate

labor disputes, and unresolved cases can be taken to the Industrial Relations
Court for adjudication.

11. Employment of Foreign Nationals

 Work Permits: Section 19 stipulates that foreign nationals must obtain work
permits before commencing employment in Zambia. Employers must
demonstrate that the position cannot be filled by a qualified Zambian.

12. Social Security Contributions

 National Pension Scheme: Section 85 obliges employers to make contributions

on behalf of employees to the National Pension Scheme Authority (NAPSA) for
future social security benefits.

13. Right to Join Trade Unions

 Freedom of Association: Section 68 guarantees the right of employees to join

trade unions and engage in collective bargaining without fear of discrimination
or retaliation from employers.

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Conclusion

The Employment Code Act, No. 3 of 2019 is designed to ensure a fair and balanced
employment relationship in Zambia. It safeguards workers' rights, promotes equality,
and provides clear guidelines for employers regarding wages, contracts, and workplace
standards. By setting out minimum standards and addressing key aspects such as
discrimination, safety, and dispute resolution, the Employment Code enhances the
protection of both employers and employees in the labor market.

Distinction between contract of service and contract for services

In employment law, the terms "contract of service" and "contract for services" refer to
two distinct types of contractual relationships between parties, and they define different
kinds of work arrangements. Understanding the distinction between the two is
essential, as they determine the rights, obligations, and legal status of the parties
involved. Here's a breakdown of the differences:

1. Contract of Service

A contract of service refers to a traditional employment relationship between an

employer and an employee. This is the type of contract governed by employment laws,
such as the Employment Code Act, 2019 in Zambia. It establishes a working
relationship where the employee is hired to perform work under the direction and
control of the employer.

Characteristics:

 Employer-Employee Relationship: A contract of service creates an employer-

employee relationship where the employer exercises control over the employee’s
work.

 Direction and Supervision: The employee works under the supervision and
management of the employer, who sets the terms and conditions of employment.

 Continuous and Ongoing: Employment under a contract of service is generally

ongoing and not for a specific, short-term task. It may be a permanent or fixed-
term employment contract.

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 Obligations: The employer is obligated to provide certain statutory benefits to
the employee, such as sick leave, maternity leave, annual leave, pension
contributions (NAPSA), and severance pay upon termination.

 Legal Protections: Employees under a contract of service are protected by labor

laws, including minimum wage regulations, working hours, health and safety
requirements, protection from unfair dismissal, and anti-discrimination laws.

 Taxation: The employer is responsible for withholding income tax (Pay-As-You-

Earn, or PAYE) and making social security contributions on behalf of the
employee.

Example:

A person working as a receptionist for a company under a contract that defines their
working hours, salary, duties, and entitlements to leave and benefits is under a contract
of service.

Key Rights of Employees under a Contract of Service:

 Entitlement to sick leave, maternity leave, annual leave, etc.

 Protection against unfair dismissal.

 Right to join trade unions and engage in collective bargaining.

 Coverage under social security schemes (such as NAPSA).

2. Contract for Services

A contract for services refers to a business relationship between a client and an

independent contractor or service provider. This type of contract is not governed by
employment law but by general contract law. It is used when a company or individual
engages the services of an external contractor to perform a specific task or provide a
service for a fee.

Characteristics:

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 Independent Contractor Relationship: A contract for services creates a
relationship between a client and an independent contractor, who is hired to
complete specific tasks or projects. There is no employer-employee relationship.

 No Direct Control: The contractor is usually not under the direct control or
supervision of the client. Instead, they work independently and provide their
expertise or services. The client only specifies the outcome of the work, not the
manner in which it is done.

 Temporary or Task-Based: Contracts for services are typically for specific, time-
bound tasks or projects. Once the task is completed, the contract ends.

 No Employment Rights: Independent contractors are not entitled to statutory

employment benefits such as sick leave, annual leave, severance pay, or pension
contributions. They are responsible for their own taxes and social security
contributions.

 Taxation: The contractor must handle their own taxation and does not receive
PAYE deductions. They may be required to register for VAT and pay income tax
on their earnings.

Example:

A web developer hired to design a company’s website under a contract that specifies
the scope of work, delivery timeline, and payment terms, but without supervision or
benefits, is under a contract for services.

Key Features of a Contract for Services:

 No entitlement to employment benefits.

 The contractor is responsible for managing their own taxes and social security
contributions.

 The contractor has control over how the work is done, often using their own
tools and resources.

 Once the specific job or task is completed, the contract ends.

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Types of employment contracts under the Employment Code Act No.
3 of 2019
The Employment Code Act No. 3 of 2019 in Zambia outlines different types of
employment contracts that govern the relationship between employers and employees.
These contracts are designed to cater to various work arrangements and include specific
terms regarding the nature, duration, and termination of employment. Below are the
key types of employment contracts recognized under the Act:

1. Permanent Employment Contracts

A permanent employment contract is an open-ended contract where the employee is

engaged to work for the employer without a predetermined end date. The employment
continues until it is terminated by either party, subject to the statutory notice period or
mutual agreement.

Features:

 Indefinite duration: No specific end date for the contract.

 Benefits: Employees under permanent contracts are entitled to full statutory

benefits such as annual leave, sick leave, maternity/paternity leave, and
severance pay upon termination.

 Termination: The contract can be terminated by either the employer or the

employee, but proper notice or payment in lieu of notice is required.

Example:

A person hired as a full-time accountant with no specific end date for their
employment, with rights to benefits and entitlements under the law.

2. Fixed-Term Employment Contracts

A fixed-term employment contract is for a specified period. The contract automatically

expires at the end of the specified term unless renewed by the employer and the
employee.

Features:

 Definite duration: The contract specifies a start and end date.

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 Termination: The contract naturally expires at the end of the agreed term
without the need for notice unless it is terminated earlier according to the
contract's terms or by mutual agreement.

 Renewal: Employers may choose to renew the contract, but successive renewals
may imply a permanent contract if the employee works continuously for more
than five years (Section 28).

 Entitlements: Employees are entitled to statutory benefits, such as leave and

severance pay, as long as they meet the required conditions.

Example:

An individual hired to work as a project manager for a period of 12 months for a

specific project. Once the project is completed, the contract ends unless renewed.

3. Part-Time Employment Contracts

A part-time employment contract involves an employee who works fewer hours than a
full-time employee. The contract specifies the hours of work, and the employee is
entitled to proportionate benefits based on the number of hours worked.

Features:

 Reduced working hours: Employees work fewer hours than full-time

employees, as stipulated in the contract.

 Proportional benefits: Entitlements such as leave, pay, and social security

contributions are proportional to the time worked.

 Flexibility: Part-time contracts can be permanent or fixed-term, depending on

the employer’s needs.

Example:

A teacher who works only three days a week at a school is employed under a part-time
contract.

4. Casual Employment Contracts

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A casual employment contract is for work that is irregular or intermittent, often
involving short-term assignments. Casual workers do not typically have the same
entitlements as full-time or permanent employees.

Features:

 Short-term nature: The employment is on a day-to-day basis or for tasks that are
not ongoing or permanent.

 Limited benefits: Casual employees may not be entitled to full statutory

benefits, but they are still entitled to wages and other benefits as agreed in the
contract.

 Termination: The contract ends when the task is completed, or the work is no
longer available.

Example:

A laborer hired for a few days to help with a construction project is considered a casual
worker.

5. Probationary Employment Contracts

A probationary employment contract allows an employer to assess an employee's

performance and suitability for a position before confirming them as a permanent
employee. Probation periods must not exceed three months, but they can be extended
for an additional three months with the employee’s consent.

Features:

 Evaluation period: Employees are assessed on their performance during the

probation period.

 Termination: The employer can terminate the contract during the probation
period if the employee's performance is not satisfactory, but with proper notice
or payment in lieu of notice.

 Conversion to permanent employment: If the employee successfully completes

the probation period, the contract may be converted into a permanent one.

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Example:

A company hires a new employee under a three-month probationary contract, after

which their performance is reviewed to determine if they will be offered a permanent
position.

6. Piecework Contracts

A piecework contract is based on payment by results or output rather than the number
of hours worked. Employees are paid according to the quantity or quality of work
completed.

Features:

 Output-based pay: The employee is paid based on the amount of work done or
pieces produced, rather than an hourly or daily wage.

 Benefits: The employee may be entitled to statutory benefits depending on the

length and continuity of the employment relationship.

 Termination: The contract ends when the agreed-upon amount of work is

completed or the project is finished.

Example:

A tailor hired to sew a certain number of garments is paid based on the number of items
completed, not the hours worked.

7. Casual Employment Becoming Permanent

Under the Employment Code Act, casual employment may evolve into permanent
employment if the employee works for the same employer continuously for four
months or more. At this point, the casual worker is entitled to the same benefits as a
permanent employee.

Features:

 Four-month threshold: If a casual employee works continuously for four months

or longer, they are no longer considered casual workers.

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 Entitlements: Casual workers who become permanent are entitled to full
statutory benefits, including leave, sick pay, and severance pay.

Example:

A worker who has been hired on a casual basis for over four months without
interruption may be automatically deemed a permanent employee.

Conclusion

The Employment Code Act No. 3 of 2019 recognizes various types of employment
contracts to accommodate different work arrangements in Zambia. Employers and
employees must clearly define the type of contract they are entering into, as each type
carries specific rights, obligations, and benefits. This ensures that both parties are aware
of their responsibilities and that employees receive appropriate protection under the
law.

Vicarious liability in employment law

Vicarious liability in employment law refers to a legal principle where an employer is

held responsible for the wrongful actions or omissions of an employee that occur
during the course of their employment. The employee's misconduct, negligence, or
wrongful act does not need to be directly authorized by the employer for the employer
to be held liable. Instead, the key issue is whether the act was committed in connection
with the employee's work.

Key Elements of Vicarious Liability

To establish vicarious liability in employment law, certain elements must be present:

1. Employer-Employee Relationship: Vicarious liability typically applies in cases

where there is an employer-employee relationship, which usually involves a
contract of service. Independent contractors, who work under a contract for
services, are generally not subject to this principle, unless the employer has a
particularly close degree of control over them.

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2. The Tort or Wrongful Act: The employee must have committed a tort (such as
negligence, assault, or defamation) or other wrongful conduct for which the
employer could be liable.

3. Course of Employment: The wrongful act must have occurred during the course
of the employee's employment. Courts assess whether the conduct was closely
related to the employee’s duties or role, even if the act was unauthorized or a
breach of company policy.

Examples of Vicarious Liability

1. Negligence by an Employee: If a driver employed by a company negligently

causes a car accident while delivering goods, the employer may be held
vicariously liable for the driver’s actions, even though the employer did not
personally cause the accident.

2. Harassment or Discrimination by an Employee: If an employee sexually

harasses a colleague at work, the employer could be vicariously liable for the
employee’s misconduct, especially if the harassment occurred in the workplace
or during work-related activities.

3. Violent Acts: If a security guard employed by a company assaults someone

while on duty, the company could be held vicariously liable for the actions of the
security guard, provided the act occurred in the scope of employment.

Key Considerations in Determining Vicarious Liability

1. Scope of Employment:

o The act must have been committed within the scope of the employee’s
employment. This means that the wrongful act must be connected to the
employee’s duties or role within the company. Even unauthorized or
wrongful acts can still fall under this scope if they are sufficiently linked
to the employee’s work.

2. Frolic and Detour:

o If the employee’s wrongful act occurs during a "frolic" (an activity outside
the scope of employment or for personal reasons), the employer may not

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be vicariously liable. For example, if an employee goes off on a personal
errand during work hours and commits a wrongful act, the employer may
not be liable. However, if the act was a minor deviation (a "detour") from
their duties, the employer could still be liable.

3. Close Connection Test:

o Courts may apply the "close connection" test to assess whether the
wrongful act is sufficiently related to the employee’s work to hold the
employer liable. If the wrongful act is closely connected to the employee’s
duties, even if it was not directly authorized, the employer could be
vicariously liable.

Defenses for Employers

Employers may defend against vicarious liability claims by showing that:

1. The Employee was Not Acting in the Course of Employment: The employer
may argue that the employee was not acting within the scope of their
employment when the wrongful act occurred, such as when the employee was
engaged in personal business or a frolic.

2. Independent Contractor: If the person who committed the wrongful act was an
independent contractor rather than an employee, the employer may not be held
vicariously liable, as vicarious liability generally does not apply to independent
contractors.

Rationale Behind Vicarious Liability

The concept of vicarious liability is based on the idea that employers are in a position of
control over their employees and benefit from their labor. Since they have the power to
control their employees' actions, they should also bear the responsibility for wrongful
acts committed in the course of employment. Additionally, employers often have the
resources (such as insurance) to compensate victims of wrongful acts.

Statutory Framework in Zambia

Under the Employment Code Act No. 3 of 2019 and common law principles, employers
in Zambia can be held vicariously liable for the wrongful actions of their employees if

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these actions occur during the course of employment. Vicarious liability helps protect
victims by ensuring that they can seek compensation from employers who may be
better able to provide remedies than individual employees.

Conclusion

Vicarious liability is an important principle in employment law that ensures that

employers are accountable for the wrongful acts of their employees when those acts
occur in connection with their work. This concept provides victims with a means to seek
compensation and ensures that employers take responsibility for managing and
supervising their employees properly. However, employers can also take steps, such as
training and establishing clear workplace policies, to reduce the likelihood of wrongful
acts occurring in the first place.

Termination of Employment Contracts Under the Employment

Code Act, No. 3 of 2019 (Zambia)
The Employment Code Act in Zambia provides clear guidelines on how employment
contracts can be terminated. The Act ensures fairness in the termination process by
laying out specific grounds, procedures, and entitlements. Below are the key provisions
regarding the termination of employment contracts:

1. Types of Termination

Termination of an employment contract can occur in the following ways:

 By mutual agreement: Both employer and employee agree to end the contract.

 By resignation: The employee voluntarily leaves the job, subject to providing the
required notice.

 By dismissal: The employer ends the employment, either with or without notice,
depending on the grounds for dismissal.

 By expiry of a fixed-term contract: When a contract with a defined term comes

to an end.

 Retirement or death: Employment can terminate upon reaching the retirement

age or upon the death of the employee.

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 Redundancy: When the employer can no longer sustain the role, due to business
changes.

2. Notice Periods

The Act mandates specific notice periods for termination based on the employee's
length of service and the type of employment contract:

 For employees paid on a daily basis: One day's notice.

 For employees paid at intervals of less than a week (e.g., weekly): Seven days'
notice.

 For employees paid at intervals of one week or more but less than a month:
Two weeks’ notice.

 For employees paid on a monthly basis: Thirty days' notice.

If the employer or employee wishes to terminate the contract without giving the
required notice, they must pay the other party an amount equal to the wages for the
notice period ("payment in lieu of notice").

3. Grounds for Termination

The Employment Code outlines specific grounds on which an employment contract

may be terminated:

 Termination with Notice:

o An employer may terminate a contract by providing notice or payment in

lieu of notice. This must be done for valid reasons, such as operational
requirements or performance issues.

o Employees are also required to give notice when resigning, following the
same notice period requirements.

 Summary Dismissal (Termination Without Notice): Section 61 allows an

employer to summarily dismiss an employee (without notice or pay) for gross
misconduct or breach of a fundamental term of the employment contract.
Examples include:

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o Serious negligence.

o Dishonesty (e.g., theft or fraud).

o Insubordination or refusal to follow lawful orders.

o Endangering the safety of others.

o Abuse of office or position.

 Termination on Medical Grounds: Section 50 allows an employer to terminate

the employment of an employee who has been certified by a medical practitioner
as unable to perform their duties due to illness or injury. This provision requires
that the employee is given an appropriate period of paid sick leave before
termination.

 Redundancy: Section 55 permits termination of employment on the grounds of

redundancy (e.g., downsizing or closure of the business). In such cases, the
employer must provide redundancy benefits to affected employees. This
includes severance pay and ensuring that the termination is handled in a fair and
transparent manner.

4. Severance Pay and Other Entitlements

Employees whose contracts are terminated after completing two years of continuous
service are entitled to severance pay, except in cases where the termination is due to
misconduct. Severance pay is calculated based on the length of service and the terms
stipulated in the Employment Code or the employment contract.

 Severance for Redundancy: Employees terminated due to redundancy are

entitled to two months' basic pay for each completed year of service.

 Severance for Dismissal with Notice: Employees terminated with proper notice
and not due to misconduct are entitled to payment of accrued benefits such as
unused leave days and any outstanding wages.

5. Unfair Dismissal

Section 65 protects employees from unfair dismissal. Dismissal is considered unfair if:

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 The employer fails to provide valid reasons for the termination.

 The dismissal is due to discrimination or an employee exercising their rights

(e.g., joining a trade union, participating in lawful industrial action, or reporting
unsafe working conditions).

If an employee believes they were unfairly dismissed, they have the right to file a
complaint with the Ministry of Labour, and the matter may be referred to the Industrial
Relations Court for resolution. Remedies for unfair dismissal include reinstatement, re-
engagement, or compensation.

6. Termination for Misconduct

Misconduct is a common ground for dismissal without notice. Section 61 allows an

employer to summarily dismiss an employee for gross misconduct, which includes:

 Theft or fraud.

 Violence or abusive behavior in the workplace.

 Endangering the safety of colleagues or customers.

 Willful damage to property.

 Continuous failure to perform duties to the required standard. Employers must

follow a fair disciplinary process before dismissing employees for misconduct,
including giving the employee a chance to explain their actions.

7. Termination Procedures

The Act outlines specific procedures that employers must follow when terminating an
employment contract, especially in cases of dismissal or redundancy:

 Disciplinary Hearings: If termination is for misconduct, the employee has the

right to be informed of the charges against them and to defend themselves at a
disciplinary hearing.

 Redundancy Consultation: In the case of redundancies, employers must engage

in consultations with affected employees or their representatives.

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 Notice of Termination: Employers must issue a written termination notice,
clearly stating the reasons for termination and providing details of the
employee's entitlements.

8. Grievance Procedures

Section 78 requires employers to have clear grievance procedures in place for

employees who wish to challenge the fairness or legality of their dismissal. Employees
are encouraged to first use internal mechanisms for addressing grievances. If
unresolved, the employee can seek mediation through the Ministry of Labour or pursue
the matter in the Industrial Relations Court.

9. Payment on Termination

Upon termination, the employer is required to settle all outstanding dues, including:

 Wages for the days worked up to the termination date.

 Any accrued but unused leave.

 Any severance or redundancy pay if applicable.

 Payment in lieu of notice (if applicable).

Conclusion

The Employment Code Act, 2019, sets out comprehensive procedures and protections
for both employers and employees in cases of termination. It ensures that employees are
not dismissed arbitrarily, while allowing employers to terminate contracts for valid
reasons. The Act seeks to balance the interests of both parties, promoting fairness and
justice in the termination process.

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