Definitive Guide to Hiring in Zimbabwe

Hiring in Zimbabwe

Hiring employees compliantly in Zimbabwe means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Zimbabwe so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Zimbabwe or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Zimbabwe

Employee Probation Period

• Labor Act, 1985 specifies maximum probationary period (single, non-renewable probationary period) as:
  • One day in the case of casual work or seasonal work; or
  • Three months in any other case

Annual Leave in Zimbabwe

• The Labor Act provides paid annual leave on completion of one year of service with an employer. 
• An employee is entitled to vacation leave at the rate of one twelfth (30 calendar days; 22 working days) of his qualifying service in each year of employment, unless more favorable provisions are provided in employment contract or collective agreement.

Holidays in Zimbabwe

Maternity Leave Zimbabwe

• Female employees are granted maternity leave for a period of 98 days on full pay. 
• A female employee may proceed on maternity leave not earlier than the forty-fifth day and not later than the twenty-first day prior to the expected date of delivery.
• Paid maternity leave is granted only once during any period of twenty-four months calculated from the day any previous maternity leave granted. 
• Law also limits the number of times (to three only) when maternity leave can be availed by a worker while working with a specific employer.

Paternity Leave Zimbabwe

Sick Leave in Zimbabwe

• Sick leave is only granted by a duly registered medical practitioner. 
• Employer may provide paid sick leave during any one-year period of service as follows: -
  • 100% of wages during the first three months of sick leave;
  • 50% of wages for further three months.

Working Hours in Zimbabwe

Overtime in Zimbabwe

• The minimum overtime rate is 150% of the normal wage rate when workers have to work beyond normal working hours

Termination of Employment in Zimbabwe

• According to the Code of Conduct, a contract of employment can be terminated if the employer and employee mutually agree to it in writing.
• This is also the case if an employee is engaged in a fixed-term contract or for performance of a specific task and the contract has expired after the mandated period or the task is completed.
• Employers CAN terminate contracts on the following grounds:
  • If an employee:
    • Is guilty of theft or fraud
    • Willfully destroys employer’s property
    • Is absent for a period of five days or more working days without giving a reasonable excuse
    • Lacks a skill that he or she implicitly said they was capable of
    • Is substantially negligent in his or her duties
    • Is drunk to the extent that it makes him/her fail to perform their duties

Notice Period in Zimbabwe

• Notice of termination of the contract of employment to be given by either party shall be:
  • Three months in the case of a contract without limit of time or a contract for a period of two years or more
  • Two months in the case of a contract for a period of one year or more but less than two years
  • One month in the case of a contract for a period of six months or more but less than one year
  • Two weeks in the case of a contract for a period of three months or more but less than six months
  • One day in the case of a contract for a period of less than three months or in the case of casual work or seasonal work

Severance in Zimbabwe

• In accordance with the Labor Act, severance pay is available only for collective dismissals for economic reasons, i.e., retrenchment. 
• Although Retrenchment Board fixed the severance pay differently depending on the ability of the organization to pay, the most usual is 03 months’ pay for one year of service.

Zimbabwe Salary and Wages

13th / 14th Month Salary in Zimbabwe

• No
• There is no statutory requirement to pay the 13th or the 14th month salary.
• There is evidence that civil servants do receive the 13th month payment as Christmas bonus, however, it is seldomly paid.

• Zimbabwe has a limited social security system. 
• NSSS contributions are payable at the same rate of 4.5% of basic salary by the employer and employee.
• The maximum amount of monthly insurable earnings has been revised from ZWL 5,000 to 75% of the previous month’s Total Consumption Poverty Line (TCPL) for an average of five persons per household, with effect from 12 June 2021.

Immigration Zimbabwe

• The assistance of expatriate experts for a relatively short period is welcome if their skills are not available locally and if the employer trains a local substitute.
• Any person who wishes to engage in an occupation (including work for gain or in the interests of any business undertaking) in Zimbabwe must obtain a valid temporary employment permit (TEP).
• TEP holders must train Zimbabweans to develop the skills for which the foreign nationals were admitted.
• Applications for temporary residence permits must be submitted in conjunction with TEP applications.
• A TEP may be issued for a maximum period of three years and may be extended for a maximum period of five years if approved by the Chief Immigration Officer.
• A TEP is subject to the following conditions:
  • The permit holder may not engage in any occupation other than the occupation specified.
  • If the permit is issued on application by a particular employer, the holder may not take up employment with any other employer.
  • The holder and all the persons authorized to enter with him or her must leave Zimbabwe on or before the expiration of the period stated in the permit.
  • The permit must be surrendered to an immigration officer before leaving Zimbabwe.
• To recruit staff from outside the country, an employer in Zimbabwe must comply with the following procedures:
  • Obtain TEP application forms and temporary residence permit application forms from the Department of Immigration Control.
  • Submit the completed TEP application to the Chief Immigration Officer together with an offer of employment to the prospective employee. This offer should indicate the salary and conditions of service. 
  • Submit an application for a temporary residence permit completed by the prospective employee. 
  • It is government policy to give Zimbabweans precedence over foreign workers; therefore, the employer must justify the employment of an expatriate rather than a Zimbabwean by submitting copies of the following documents:
    • Press advertisements of the position in question Letters from employment agencies indicating that no suitable Zimbabwean is available to fill the position
    • Application letters and résumés received 
    • List of all applicants 
    • A cover letter from the employer indicating why none of the Zimbabwean applicants is suitable for the position
• All applicants for TEPs are referred by the Department of Immigration to the Ministry of Public Service, Labor and Social Welfare for approval.
• On approval of the permit, the prospective employee is sent a letter confirming the application for a TEP, which must be presented to the appropriate offices of the Department of Immigration Control at least 14 days after entering the country to obtain the permit. 
• The employee must present the following documents with the letter:
  • Passport
  • Valid radiological certificate of freedom from active pulmonary tuberculosis
• All TEP applicants must submit the following items together with the permit application:
  • Two full-face photographs of the applicant, the spouse and each child younger than 18 years of age, if the spouse and children are accompanying the applicant or joining him or her later
  • A certified copy of the birth certificate of the applicant and, if applicable, of the spouse and children 
  • One certified copy of the marriage certificate, if married 
  • Documentary evidence, in English, of qualifications and experience in the proposed occupation of the applicant

Value Added Tax (VAT) in Zimbabwe

• VAT is a transaction tax, and the implications will vary for different transactions.
• Some transactions are taxed at a rate of 14.5% or 0% while other transactions are exempt from VAT.

Mandatory Benefits in Zimbabwe

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
• Statutory benefits also include social security benefits

Payroll Accrual in Zimbabwe

Country Accruals Additional Information

Description

Zimbabwe has a limited social security system. The National Social Security Scheme (NSSS) is compulsory for all resident employees. NSSS contributions are payable at the same rate of 4.5% of basic salary by the employer and employee, with a salary cap set at ZWL 5,000 per month

Payroll Accruals Additional Information

Accrued Benefits in Zimbabwe

Why use Global Expansion to hire your employees in Zimbabwe

Establishing a branch office or subsidiary in Zimbabwe can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Zimbabwe labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Zimbabwe law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Zimbabwe. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Zimbabwe Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.