Gratuity versus Pension – Is matter settled?Dear Editor,FINALLY, the Constitutional Court (ConCourt), has settled the vexing confusion that hit the labour market following the amendment of the Constitution in 2016 regarding gratuity and pension. Article 189 (2) of the Constitution provides that an employee who has retired should be kept on the payroll until his benefits have been paid in full. But does that include workers on fixed-contracts who get gratuity at the end? Or was this law for the permanent and pensionable employees? Human resource practitioners had difficulties navigating these legal conundrums. Three former workers of Zambia Open University moved to the ConCourt on the grounds that their former employers had stopped paying them salaries before their full gratuity was be paid. They argued that they ought to have been on payroll as per constitutional requirements.The three were on fixed three-year contracts with gratuity to be paid at the end of each contract. Article 189(2) reads: “Where a pension benefit is not […]
Gratuity versus Pension – Is matter settled?
