The Employment Code (Exemption) Regulations, 2020 is the latest piece of legislation in Zambian employment law. It basically exempts certain classes of employees and sectors from specific laws in The Employment Code Act No.3 of 2019.
|Exemption Clauses from Employment Code No.3 of 2019||Exempted Employees and Sectors||Comment|
|36. Annual Leave – An employee, other than a temporary or casual employee, who remains in continuous employment with the same employer for a period of twelve consecutive months shall be granted, during each subsequent period of twelve months while the employee remains in continuous employment, annual leave on full pay at a rate of at least two days per month.||Employee||It appears that all employees have been exempted from accruing leave days at two days per month, thus employee leave has been suspended as a legal requirement.|
|37. Annual Leave Benefits Formula – Subject to an agreement between the parties which is more favourable to an employee, an employee shall be paid annual leave benefits based on the formula as set out in the Fifth Schedule||Employee||Concurrent with the above, all employees have been exempted from the payment of annual leave benefits i.e conversion of leave days.|
|48. Forced Leave – An employer shall, where the employer sends an employee on forced leave, pay the employee basic pay during the period of the forced leave.||Employer||An employer may apply for their employees to be placed of forced leave. The following shall be required for consideration; |
1. Review of current quarterly tax returns and check the extent of reduction in turnover in comparison with last return.
2. Assess documents showing suspension or reduction of business.
3. Assess cash flow projections.
4. Review past audited financial statements from previous years.
5. Review payroll and staff costs.
|54. Severance Pay (1) An employer shall pay an employee a severance pay, where the employee’s contract of employment is terminated or has expired, in the following manner: (b) where a contract of employment is for a fixed duration, severance pay shall either be a gratuity at the rate of not less than twenty-five percent of the employee’s basic pay earned during the contract period or the retirement benefits provided by the relevant social security scheme that the employee is a member of, as the case may be. (c) where a contract of employment of a fixed duration has been terminated, severance pay shall be a gratuity at the rate of not less than twenty-five percent of the employee’s basic pay earned during the contract period as at the effective date of termination.||1. Expatriate Employee |
2. Employee in Management
|Expatriate and management employees’ severance pay has been exempted. Basic aspects of such as ‘days worked’ will have to paid upon severance, however, the specific amount, if any, will be at the discretion of the employer.|
|55. Termination by Redundancy||Employer||An employer may apply for their employees to be placed of forced leave. (Refer to forced leave requirements)|
|73. Payment of Gratuity – (1) An employer shall, at the end of a long-term contract period, pay an employee gratuity at a rate of not less than twenty-five percent of the employee’s basic pay earned during the contract period. (2) Where an employee’s contract of employment is terminated in accordance with this Code, the employee shall be paid gratuity prorated in accordance with the period of employment.||1. Expatriate Employee |
2. Employee in Management 3. Employee in the Agricultural Sector
4. Employee in the Domestic Sector
|Employees who are expatriates, in management, in the domestic sector and the agriculture sector have been exempted from this legal requirement. Thus, payment of gratuity for these classes of employees and sectors is at the discretion of the employer.|
|75. Overtime||1. Expatriate Employee |
2. Employee in Management
|Expatriate and management employees have been exempted from this legal requirement. Thus, payment of overtime for these employees is at the discretion of the employer (management?).|
Please note that the above material is intended for general information purposes only and does not constitute legal advice.