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Judgment No. CCZ 2/18
Constitutional Application No. CCZ 86/15
The applicants were aggrieved by the fact that the new obligation on employers terminating
contracts of employment on notice, including contracts without time limits, to pay compensation
for loss of employment calculated in terms of s 12C(2) was given retrospective effect from 17 July
2015.
The transitional provision is as follows:
“18
Transitional provision
Section 12 of the Act [Chapter 28:01] as amended by this Act applies to every employee
whose services were terminated on three months’ notice on or after the 17 th of July, 2015.”
The contention by the applicants was that the Zuva Petroleum judgment confirmed that at
common law an employer had a right to terminate a contract of employment on notice without any
obligation to pay the employee any money other than what was due to him or her in respect of the
remaining three months of employment to which the notice related. They argued that the
transitional provision retrospectively imposed on them a financial obligation which did not exist
at the time they lawfully terminated contracts of employment with their employees on notice. The
applicants contended that the retrospectivity of the transitional provision is unconstitutional.
It is common cause that the transitional provision gives retrospective effect to the
provisions of s 12 of the Act. As a result, it imposed on the applicants the new obligation to pay
compensation for loss of employment to the employees whose contracts they terminated on notice
on or after 17 July 2015 as if the obligation was part of the law on termination of contracts of
employment on notice at the time they exercised the right to terminate the employees’ contracts.