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Judgment No. CCZ 2/18
Constitutional Application No. CCZ 86/15
Trampling on the workers’ economic interests in the termination of employment on notice
beyond the mere token payments equivalent to three months’ salaries or wages related to the notice
period was bound to trigger socio-economic consequences with retrospective effect. There is no
doubt that employers who terminated employees’ contracts on notice in the circumstances caused
that which created the compelling social need for the enactment of the legislation with
retrospective effect. The employers did not need to be told that the law required that labour matters
must be handled fairly and justly. The Legislature must have been aware of the fact that employers
who terminated employees’ contracts on notice following the Zuva Petroleum judgment did so
because they believed it was cheap and easy to dispose of employees that way.
In fact, the Zuva judgment was misinterpreted to mean that an employer could terminate
the employment contracts of any number of employees at will. There were other provisions in the
Act which prohibited the wholesale termination of employment. For example, s 12C of the Act,
before it was amended, provided that the termination of employment of five or more people
amounted to retrenchment and that retrenchment legislation was to apply.
The need for retrospectivity of the legislation was particularly compelling in this case
because the harmful consequences of the very conduct in respect to which it is claimed a vested
right arose is one of those which motivated the Legislature to act. The cause of the amendment to
s 12 of the Act was the social, political and economic impact of the termination of contracts of
employment on notice at the initiative of employers without compensation to employees for loss
of employment on or after 17 July 2015. The amendment was a direct result of those past events.
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