ZISO: Implications of the Landmark Supreme Court Labour Judgement on the Informal Sector
27 July 2015
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Zimbabwe Informal Sector’s Organization notes with great concern the landmark Supreme Court judgement that stated that the employees can expel their employees upon giving them a three months’ notice. While consultation with legal experts reveal that the courts merely did their job of interpreting the law as it is, ZISO is disturbed by the grave economic consequences of the landmark judgement. Barely a week after the judgement, thousands of people have already been fired or given notice of leave in their various workplaces.
This will have adverse effects on the livelihoods of the affected people. In particular, ZISO is concerned about the workers who are vocal in negotiating better working conditions on behalf of their workmates and those with whom management or employers may have scores to settle with or they may want to replace with their preferred candidates.
Not least however, are the grave consequences which this judgement will have on the economic configurations of the country. Foremost is the fact that the majority of the employers will seek to save their companies by laying off more employees. These employees will be left with no option but to revert to the already congested informal sector, not only putting a further strain but also complicating any formalization efforts that may be underway.
Further, the massive retrenchments and vulnerability of employees in general will lead to increased emigration leading to more pressure on neighbouring countries economies and thus subjecting Zimbabweans to further scorn within those countries.
The consequences will be much worse for those people who are employed under informal arrangements who already suffered acute employment insecurity, underpayment while working for long hours. Without wanting to undermine the rule of law, ZISO believes that it is imperative for the lawmakers to relook at the law in the context of the prevailing economic circumstances and the already evident grave consequences of the landmark judgement.
ZISO supports the position of the ZCTU in pushing for law reform towards more protection of the few workers that remain in formal employment such as the civil servants and those who are employed within the informal sector. Government must review and reconsider the labour act taking into account the prevailing economic situation and ensuring that people are not pushed beyond the corner.