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Judgment No. CCZ 2/18
Constitutional Application No. CCZ 86/15
Act on “unfair dismissal” had abolished the right of employers to terminate employees’ contracts
on notice. The Labour Court allowed the appeal by holding that the provisions of the Act did not
abolish the employer’s common law right to terminate employment on notice.
The appellants appealed to the Supreme Court. On 17 July 2015 the Supreme Court
dismissed the appeal, thereby upholding an employer’s right at common law to terminate a contract
of employment on notice as provided for in the agreement between the parties.
The reaction to the Zuva Petroleum judgment was a rush by employers, including the
applicants, to terminate employment relationships on notice. Termination of employees’ contracts
on notice became a strategy adopted by employers countrywide to get rid of employees to save
costs in an environment of economic difficulties. Employees were only paid cash in lieu of notice,
regardless of the length of service rendered to the employer. No further benefits accrued to the
large numbers of employees whose employment contracts were terminated after 17 July 2015.
As large numbers of employees were left jobless and uncompensated for the years that they
had worked for their respective employers save for their salaries paid in lieu of notice, there was
widespread public outcry. The actions of employers revealed a national crisis characterised by lack
of protection for the employees who lost employment. Some of the employees were sole
breadwinners for their families. Termination of sources of livelihood wrought severe financial
hardships on households. That gave the Legislature the rational basis for the enactment of the
legislation and for giving it retrospective effect.