Termination of the Contract of Employment

Flashcards covering methods of termination, statutory provisions from the ECA 2019, grounds for dismissal, and key Zambian case law.

Termination of employment contract

The bringing to an end of the contract of employment by methods such as notice, operation of law, mutual agreement, dismissal, or redundancy.

Section 19(3) ECA 2019

Provision stating that a contract for a specified period of time automatically expires on the date specified without requirement for notice.

Section 52(7)(b) ECA 2019

A provision under which a contract of employment terminates on the death of the employee before the end of the specified term.

Section 52(7)(c) ECA 2019

A provision stating that a permanent contract of employment terminates upon the employee attaining the applicable retirement age.

Termination by notice

The invocation of a pre-determined date or period agreed by the parties or set by statute to bring an end to the contract.

Section 53(2)(a) ECA 2019

Prescribes a default notice period of $24$ hours for a contract of employment not exceeding $1$ month.

Section 53(2)(b) ECA 2019

Prescribes a default notice period of $14$ days for a contract of employment exceeding $1$ month but not exceeding $3$ months.

Section 53(2)(c) ECA 2019

Prescribes a default notice period of $30$ days for a contract of employment exceeding $3$ months, requiring written notice if the contract exceeds $6$ months.

Termination by operation of law

Occurs when events not attributable to the parties, such as frustration, make performance of the contract impossible or change its character.

Taylor v Caldwell (1863)

The legal case that establishes the test for the frustration of an employment contract.

Mutual separation

Termination by mutual agreement of the parties, normally involving a financial settlement and the extinguishment of all contractual obligations.

Mutale v African Banking Corporation (Z) Ltd (2019)

A Court of Appeal case (CAZ) that emphasized the requirement of mutuality in a separation agreement.

Section 19(4) ECA 2019

States that a contract for a specific task terminates upon completion of that task without requiring notice.

Summary Dismissal

The dismissal of an employee without notice before the expiration of their contract due to misconduct.

Chilanga Cement Plc v Venus Kasito (2015)

The Supreme Court case that defined summary dismissal as dismissal without notice for an employee who has misconducted themselves.

Fundamental breach

A severe violation of the employment contract or duty to the employer, such as theft or gross disobedience, justifying summary dismissal.

Right to be heard

A legal requirement under Section 52(3) ECA 2019 where an employee is given an opportunity to present a case or defense before dismissal.

Sitali v Central Board of Health (1999)

A Supreme Court case holding that the submission of an exculpatory letter in disciplinary proceedings constitutes a form of hearing.

Section 51(1) ECA 2019

Requires an employer to pay a summarily dismissed employee their wages and accrued benefits up to the date of the dismissal.

Section 49 ECA 2019

Grants an employer discretion to suspend an employee as part of the disciplinary process in accordance with applicable rules.

Wrongful dismissal

A common law occurrence where an employer dismisses an employee without notice or in violation of contractual provisions or disciplinary codes.

Konkola Copper Mines Plc v Hendrix Mulenga Chileshe (2015)

A case defining wrongful dismissal as occurring when an employer terminates a contract without notice or in breach of contractual provisions.

Zambia National Provident Fund v Chirwa (1986)

A Supreme Court case establishing that no injustice occurs if an employee admits to a dismissible offence (like theft) even if procedures were not followed.

Constructive dismissal

Occurs when the employer's conduct or behavior constitutes a fundamental breach of contract, forcing the employee to resign.

Kitwe City Council v William Ng'uni (2005)

A Supreme Court case defining the test for constructive dismissal as whether the employer's conduct entitles an employee to resign.

Chilanga Cement Plc v Kasote Singogo (2009)

A Supreme Court case holding that constructive dismissal occurs if an employee is forced to leave due to the employer's unlawful conduct amounting to a fundamental breach.

Unfair dismissal

A statutory situation where an employer dismisses an employee contrary to employment/labour legislation, such as for discrimination or trade union activity.

Section 108 ILRA, CAP 269

Prohibits the termination of an employee on grounds of race, sex, marital status, religion, political opinion, tribal extraction, or social status.

Redundancy

Termination of a contract by operation of law due to business closure, diminished work requirements, or adverse alteration of conditions not consented to by the employee.

Section 55(2)(a) ECA 2019

Requires an employer to give a notice of not less than $30$ days to the employee/representative regarding impending redundancy.

Section 55(2)(c) ECA 2019

Requires an employer to notify an authorized officer of impending redundancy at least $60$ days prior to effecting the termination.

Minimum redundancy payment

Under Section 55(3), a payment of not less than $2$ months' pay for every year served, unless better terms are agreed upon.

Severance pay

Entitlements under Section 54 ECA 2019 payable upon termination for medical grounds, fixed-term expiration, redundancy, or death.