Retrenchment in Zambia: What Your Employer Must Do
Being retrenched in Zambia? Your employer must consult you, give written notice, and pay a retrenchment package. Here is what the Employment Code Act 2019 requires.
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Direct Answer
Under the Employment Code Act 2019 (Act No. 3 of 2019), an employer who wishes to retrench employees for operational reasons must consult with affected employees or their union, give at least one month's written notice (or pay in lieu), and pay a retrenchment package of not less than two days' pay per year of service. If the process was not followed, you can file a complaint with the Labour Commissioner — free.
What the Law Says
Your Legal Foundation
Employment Code Act 2019 (Act No. 3 of 2019)
Section 36
“An employer who intends to retrench employees shall notify in writing the labour officer and the trade union representing the employees, and shall consult with the employees or their trade union before implementing the retrenchment.”
Employment Code Act 2019
Section 36(4)
“An employer shall pay a retrenched employee a retrenchment package not less than two days' basic pay for each completed year of continuous service.”
Constitution of Zambia (Amendment) Act 2016
Article 65
“Every person has the right to fair and safe labour practices and standards and to be paid a fair and reasonable wage.”
What to Do
Step-by-Step Guide
1Demand a written notice of the proposed retrenchment. The Act requires written notice to both you and the Labour Commissioner before any retrenchment takes effect. Verbal announcements are not sufficient.
2Participate in the consultation. You have the right to be consulted — individually or through your union — before the decision is finalised. You can propose alternatives: reduced hours, temporary pay cuts, or voluntary redundancy.
3Calculate your package. You are entitled to at least 2 days' basic pay per completed year of continuous service, plus any accrued leave pay, plus notice pay if not given one month's notice. Get a written breakdown before you sign anything.
4Do not sign a settlement without independent advice. If you are offered a package, you have the right to take time to consider it and seek advice from the Labour Commissioner or a trade union representative before signing.
5If the process was not followed, report to the Labour Commissioner at your nearest Labour Office. The process is free. The Commissioner can investigate and order remedies including reinstatement or compensation.
What to Say
Exact Words to Use
“"I require a written notice of retrenchment as required under Section 36 of the Employment Code Act 2019, a genuine consultation process, and a retrenchment package of not less than two days' basic pay per completed year of service. Please confirm the process that will be followed in writing."”
Tone: Written — to your employer or HR
Common Questions
Frequently Asked Questions
How much notice am I entitled to before retrenchment in Zambia?
If you are retrenched, you are entitled to at least one month's notice or one month's pay in lieu of notice under the Employment Code Act 2019. This is separate from and in addition to the retrenchment package itself.
Can I be retrenched while on sick leave or maternity leave in Zambia?
Selecting an employee for retrenchment because of illness or pregnancy is unlawful discrimination under the Employment Code Act 2019. The selection must be based on objective operational criteria. If the timing of the retrenchment coincides with your leave, report to the Labour Commissioner.
Must my employer look for alternatives to retrenchment in Zambia?
The consultation process required under Section 36 implicitly requires consideration of alternatives. If your employer announced retrenchments without any consultation or exploration of alternatives, this is procedurally unfair and can be challenged at the Labour Commissioner.
Get Help Now
Resources & Helplines
Labour Commissioner Zambia
Nearest Labour Office
File retrenchment disputes here. Free. Offices in all provinces.