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.(2) Termination by Redundancy (Ministry of Labour notification and employee consultation period) | Employer | An employer may be exempted from the 60 day Ministry of Labour and 30 day employee consultation period by applying to the Ministry of Labour. 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. |
| 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.
Musonda Speaks HR 
An oral contract is still valid at law. Except that for the avoidance of doubt, the law requires that a contract of employment be in written so that the terms between you and the employer will be clearly spelt out. So, go and demand for one.
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What is the minimum wage for a gardener?
Is emplyer of gardener obliged to pay NAPSA?
What happens when a gardener falls sick and is unable to work for an extended period; what options are available to the employer and what conditions apply??
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Does this mean that if you are applying the formula for annual leave pay you have to use the basic pay?
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So the formula for annual leave, is the basic pay or full pay used?
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Prior to the exemption regulations it was full pay
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I would like to seek guidance, i have been in employment as an accountant/company secretary since july 2013 earning a gross zmw 5000 comprising basis salary 3500 and 1500 as housing allowance in 2017 i drew gratuity and leave prorated at time.During all this period i have never been given a contract of service save for payslip.i have done almost 8 years with company drawing a same salary, and the gratuity paid to me in 2917 was at 10% . What is my worst possible pay out assuming the employer wants to do away with my services. By theway upto now i have no contract of service.
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Have you ever asked for one? What was the outcome?
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Seek an audience with the HR, and ask for a contract of employment. The contract is a basis for the relationship between yourself and the employer. The Employment code , Act No. 3 of 2019 is particularly important to you. You can download for your reading.
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Thanks for your explanation…
My question is, when did the same LABOUR LAWS STARTED WORKING/IMPLEMENTED?
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Thanks for your explanations. Much appreciated.
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I’m glad to be of service.
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Who is considered as a management employee in an organisagion?
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The following constitute person(s) in management;
a) who is the head of an institution or undertaking and has authority to hire, suspend, promote or demote an employee of the institution or undertaking;
b) who is the head of a department in an institution or undertaking and has authority in the financial, operational, human resource, security or policy matters of the institution or undertaking;
c) with decision-making authority in the financial, operational, personnel or policy matters of an institution or undertaking and who represents and negotiates on behalf of the institution or undertaking in collective bargaining or negotiations with any trade union;
d) with written institutional authority to perform the functions referred to in paragraphs (a), (b) or (c);
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A Human resource manager is considered to be a management employee because of his/her expertise in the field.
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