Redundancy and operational requirements

Question 1

What is redundancy?

Answer 1

This is when an employee’s position at the entity is abolished due to economic reasons. (Friday Kabaso Phiri v Davies Tembo). This must be in line with S55 of the ECA

Question 2

What is termination based on operational requirements?

Answer 2

This is when an employer is no longer able to be sustained in the entity. It is also known as retrenchment.

Question 3

How is Redundancy different from termination based Operational requirements

Answer 3

1. Redundancy requires reasons be given to an authorized officer. While in retrenchment only sufficient notice, valid reasons and payment of dues.
2. An employee dismissed for operational requirements is only entitled to notice and severance pay.
3. Redundancy requires the position to be abolished or diminished. (Derrick Mukomwana and Marin Lukwesa v AFROX).

Question 4

What are the reasons for redundancy under S55

Answer 4

i) Employer ceasing the business that enagaged the employer. ( SImeza v SFH & Herrwitt Chola v Dunlop Zambia) - closure of business is a valid ground.
ii) Diminishing need for a particular employee to carry out a particular job. Sutton v Revlon overseas, held that where an employer decides work of two may be done by one. thus leads to redundancy.
iii). Adverse alterations to the contract that have taken effect that the employee did not consent to. (mike musonda kabwe v bp Zambia)

Question 5

What is the redundancy procedure?

Answer 5

As outlined in S55,
i) Notice to the labour commission must be given. Zambia Airways v Musengele held that failure to do so does not render it invalid but merely attracts a penalty.
ii) Consultations must be done to the employee affected to mitigate the adverse effects. Mugford v Midlands held failure to consult will only be unfair if consultation could not achieve
anything.
iii) Notice. Chilanga Cement v Kasote Singogo held that redundancy w/o notice is done in bad faith. it further stated in such situations payment in lieu of notice is not appropriate.
iv) Considering alternatives. If the reorganization leads to a new suitable alternative it will not be redundancy. (friday Kabaso). Refusal to the alternative invalidates the claim for redundancy. (Anthony Phiri v Workers Compensation Fund.)