The Board sets packages according to capacity to pay

By Equipo Saplic Published on 12/08/2026 Updated on 12/08/2026

Which is why outcomes vary so much between employers.

In this guide
  1. What the Board does
  2. Capacity to pay
  3. Why published figures vary
  4. What that means for you
  5. What a package can include
  6. The 14-day notice
  7. Questions worth asking

Zimbabwe has a dedicated Retrenchment Board, and its role explains why published severance figures for Zimbabwe differ so widely.

What the Board does

It receives notification of intended retrenchments, and is notified of any agreed package or of payment of the minimum package under the 2024 regulations.

It then issues a notification certificate confirming compliance.

Capacity to pay

The Board has historically fixed severance differently depending on the ability of the organisation to pay, and the Labour Amendment Act 2023 made "capacity to pay" an express concept.

That means a well-resourced employer may face a higher expectation than a struggling one, and it explains why outcomes are not uniform.

Why published figures vary

You will encounter several numbers in guidance on Zimbabwe:

  • One month per two years — the statutory minimum under Section 12C
  • Two weeks per year — cited as a common negotiation benchmark, not a strict legal minimum
  • Three months per year — cited as a Retrenchment Board outcome in some cases

These are not contradictory so much as different points in a range shaped by negotiation and capacity to pay.

What that means for you

The statutory minimum is a floor. The employer is obliged to consult and negotiate any package better than it.

So the number you are first offered is rarely the only number available.

What a package can include

Beyond the severance component:

  • Payment in lieu of notice
  • Accumulated leave days

The 14-day notice

The employer must notify the works or employment council, the Retrenchment Board and the affected employees 14 days in advance, with details and reasons.

Questions worth asking

  1. Was the 14-day notice given to all three recipients?
  2. Did consultation and negotiation take place?
  3. Was the Retrenchment Board notified of the outcome?
  4. Was a notification certificate issued?
  5. Is the offer the statutory minimum, or an enhanced package?

Frequently asked questions

What does the Retrenchment Board do?
It receives notification of intended retrenchments and of the agreed package or minimum payment, then issues a notification certificate confirming compliance.
Why do published severance figures for Zimbabwe vary so much?
Because the Board has fixed packages according to the organisation’s capacity to pay, which the 2023 amendment made an express concept.
Is the first offer usually the final one?
Not necessarily. The statutory minimum is a floor, and the employer is obliged to consult and negotiate any package better than it.
What else can a package include?
Payment in lieu of notice and accumulated leave days, alongside the severance component.
What should I ask about the process?
Whether the 14-day notice went to all three recipients, whether negotiation took place, whether the Board was notified, and whether a certificate was issued.

Sources

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