Zimbabwe

Zimbabwe PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Zimbabwe to companies entering Zimbabwe market or hire local/expat candidates in this area.

The usual approach requires establishing a subsidiary in Zimbabwe.  However, our offer allows you to start the operations in Zimbabwe within days hence save time and money.  WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Zimbabwe fast facts

Population, million: 14
Land area: 390,757  km²
Capital: Harare
Local currency: Zimbabwean dollar

GDP per capita:$ 2,621
GDP in currency:$ 41.031 billion

Zimbabwe, officially Republic of Zimbabwe, formerly (1911–64) Southern Rhodesia, (1964–79) Rhodesia, or (1979–80) Zimbabwe Rhodesia, landlocked country of southern Africa. It shares a 125-mile (200-kilometre) border on the south with the Republic of South Africa and is bounded on the southwest and west by Botswana, on the north by Zambia, and on the northeast and east by Mozambique. The capital is Harare (formerly called Salisbury). Zimbabwe achieved majority rule and internationally recognized independence in April 1980 following a long period of colonial rule and a 15-year period of white-dominated minority rule, instituted after the minority regime’s so-called Unilateral Declaration of Independence (UDI) in 1965.

Hiring, Negotiating and Doing Business in Zimbabwe

Necessity of written employment contract

A work contract does not have to be written. If the working time is not mentioned, it is considered permanent. Casual work is considered permanent the day on which the period of work exceeds a total of six weeks during four consecutive months.

An employer is supposed to write a contract to the employee and the letter is supposed to have the following particulars:

  • Name and address of the employer
  • The period of time for which the employee is engaged
  • The terms of probation (if any)
  • The terms of an employment code
  • Information of the employees remuneration, its manner of calculation and the intervals at which it will be paid
  • Information on benefits receivable in the event of sickness or pregnancy
  • Hours of work
  • Information of any bonus or incentive production scheme
  • Information of vacation leave or vacation pay
  • Information of any other benefits

Different forms of engagement: employment, contracting, work with private entrepreneur

The Zimbabwean labour law recognises various types of employment relationships namely casual employment, contract employment, permanent employment and independent contractors.

  • Casual employment

Casual employees refer to employees who work for no more than six weeks in any four — month period. The four — month period was brought into effect by the 2003 amendments to the Labour Act.

  • Contract Employment

Contract employment are those employees employed for a fixed term or a fixed job, at the close of which their services are either terminated or the employer offers a further fixed – term or fixed job contract.

  • Permanent Employment

An employee usually enters into a permanent contract by accepting this status right at the time of initial appointment to a job or after successfully serving a probationary period of three months which is single and non-renewable.

  • Independent Contractors

An independent contractor is not an employee at all. The amendments to section 2 of the Labour Act in 2003 specifically addressed this issue by tightening the definition of employee so as to prevent persons who were clearly employees of an organisation from being employed as so called “independent contractors”.

Zimbabwe Employment Contract

Types of employment agreements

Most workers in Zimbabwe are on fixed term contracts. According to labour law, fixed term contracts expire at the end of the term specified. Employment maybe terminated by mutual agreement.

However, in some cases employees have been fixed term contract workers for 10-16 years. This is unfair labour practice as workers do not enjoy the job security and benefits that come with a permanent job in a company.

Zimbabwe working hours

In Zimbabwe, every Collective Bargain Agreement provides for minimum hours of work. The model Collective Bargaining Agreement recommends a minimum of eight hours per day, subject to the nature of the work, and 40 hours per week. This could be up to a maximum of ten hours a day.

Overtime

Overtime is not compulsory unless provided for in the CBA or regulations or it is an emergency situation. An employee can only be required to work a maximum of 10 hours per day.

For breakdown, continuous work, emergency and for every hour or part thereof worked by an employee in excess of his/her ordinary hours of work, the employer shall pay the employee not less than one and a half times his/her ordinary rate.

For every hour or part thereof worked by an employee between midnight on Saturday and midnight on Sunday, or midnight of the day before their day off, the employer shall pay the employee not less than twice their ordinary rate.

Vacation leave in Zimbabwe

The Labour 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 favourable provisions are provided in employment contract or collective agreement.

Workers are entitled to 24 consecutive hours of rest per week. Weekly rest days can either be same every week or as agreed by employer and employee.

No provision could be located in law regarding rest breaks and daily rest period.

Zimbabwe Maternity Leave

Paid maternity leave requires at least one year of service. Paid leave may only be granted upon production of a medical certificate and for three times for the same employer and only once during a 24 month period calculated from the day previous leave was granted. Duration: 98 days.

Zimbabwe Severance Laws

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

Zimbabwe Tax

Social Security Contributions Paid By Employers: 3.5%
Social Security Contributions Paid By Employees: 3.5%

Taxable income – Only income from a source within Zimbabwe or deemed to be from a source within Zimbabwe is subject to tax. This includes income from employment or income from trade and investments.

Zimbabwe individual income tax is imposed at progressive rates up to 35%. The 3% AIDS Levy is also imposed.

Income Tax

  • Exemption from Income Tax of the first US$3 000.00 per annum on rental income earned by persons aged 55 years or above.
  • Exemption from Income Tax of the first US$3 000.00 per annum on income earned by persons aged 55 years or above from bankers acceptances
  • Exemption from Income Tax of the first US$3 000.00 per annum on income earned by persons aged 55 years or above from interest on deposits to financial institutions.
  • Taxpayers aged 55 years or above are entitled to an elderly persons’ credit of US$900.00 per annum.
  • Pensions received from a pension fund or the Consolidated Revenue Fund by taxpayers aged 55 years or above are exempt from Income Tax.
  • Where an employer disposes of a motor vehicle to an employee aged 55 or above whether on termination of employment or otherwise, the benefit is exempt from tax.

Health Insurance Benefits in Zimbabwe

The scheme pays all medical expenses related to the injury at work. It also includes provision of transport and artificial appliances. However, the payment of expenses such as drugs, hospitalisation and surgical procedures are made using the ruling Association of Health Funders of Zimbabwe (AHFoZ) rates.

In accordance with the Labour Act 1985, if an employee is provided sick leave if sickness is preventing him/her from fulfilling the duties. A worker is entitled to sick leave for up to 6 months if he has a certificate from the qualified doctor. An employer may dismiss an employee if the employee is on sick leave for more than 6 months. 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

During sickness, an employee may avail accrued vacation leave instead of sick leave in half pay or without pay.

Additional Benefits in Zimbabwe

Zimbabwe’s minimum wages vary by sector. For example, domestic workers make between $85 and $100 a month, while yard workers and gardeners should receive $85 a month. The country also allows for trade unions and collective bargaining agreements (CBAs), which could result in a different minimum wage for your employees.

Zimbabwe’s employment laws do not stipulate any supplemental or market norm benefits besides statutory requirements. However, providing these benefits will attract a greater level of talent to your positions, showing your employees that you want them to succeed with your company and continue to work for you for years to come. While you can give out any benefits you want, we recommend giving out performance-based bonuses, paid paternity leave, and private health insurance.

Companies wanting to expand to Zimbabwe cannot do so without a subsidiary. You need the subsidiary infrastructure to run your payroll and set up your benefits plan. However, it usually takes weeks or months to establish a subsidiary, and then you could spend a few more months learning Zimbabwe’s compensation laws and benefits requirements.

General market practice benefits/additional allowances

Zimbabwe has been ranked as one of the top three African countries that offer the best Return on Investment (ROI) between 2014 and 2016. Zimbabwe is ranked after Nigeria and Kenya in a survey which was conducted with the aim of establishing the African country that would offer the best economic outlook for the next three years. Zimbabwe is a signatory of several bi-lateral and international agreements (MIGA, OPIC, ICSID and UNCITRAL) which protects the investments of the companies in Zimbabwe. The country has cheap educated and competitive labor, well developed infrastructure, easy access to regional and World markets through its membership in AU, COMESA, SADC, COPAC and CISSA. Zimbabwe offers free movement of investment capital and attractive investment incentives. All most all sectors of Zimbabwe’s economy are in need of immediate investment sectors like agro-processing and agro-forestry, manufacturing (textiles, clothing and footwear, chemicals and technology ), tourism, services (construction, infrastructure and transport), mining and ICT present a host of investment opportunities.

Zimbabwe Holidays

Workers are entitled to paid holidays during Festival (public and religious) holidays. Employee is paid his/her current remuneration for that day if it occurs on a day on which he/she would otherwise have been required to work.

Public Holidays in Zimbabwe are 11 in number. They include:

  • New Year’s Day (1 January)
  • Good Friday
  • Easter Saturday
  • Easter Monday
  • Independence Day (18 April)
  • Workers’ Day (1 May)
  • Africa Day (25 May)
  • Heroes & Defence Forces Days (2nd week of August)
  • Unity Day (22 December)
  • Christmas Day (25 December)
  • Boxing Day (26 December)

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

FAQ Zimbabwe

  • Working hours in Zimbabwe

    In Zimbabwe, every Collective Bargain Agreement provides for minimum hours of work. The model Collective Bargaining Agreement recommends a minimum of eight hours per day, subject to the nature of the work, and 40 hours per week. This could be up to a maximum of ten hours a day.

  • What are the main holidays in Zimbabwe?

    • New Year’s Day (1 January)
    • Good Friday
    • Easter Saturday
    • Easter Monday
    • Independence Day (18 April)
    • Workers’ Day (1 May)
    • Africa Day (25 May)
    • Heroes & Defence Forces Days (2nd week of August)
    • Unity Day (22 December)
    • Christmas Day (25 December)
    • Boxing Day (26 December)
  • What are payroll taxes in Zimbabwe?

    Social Security Contributions Paid By Employers: 3.5%
    Social Security Contributions Paid By Employees: 3.5%

    Zimbabwe individual income tax is imposed at progressive rates up to 35%. The 3% AIDS Levy is also imposed.

  • Subscribe to blog post updates