Air Zimbabwe Wins Appeal: Ex-Workers Accepting Retrenchment Packages Waive Procedural Rights

Court Upholds Decision: Accepting Back Pay Seen as Acceptance of Termination

In a decision with implications for future retrenchment cases, the Labour Court has ruled in favour of Air Zimbabwe regarding the retrenchment of 300 former employees. 

The court found that by accepting retrenchment packages, the workers waived their right to challenge procedural irregularities in the process, even though they claimed those irregularities existed.

Background of the Case

The case stemmed from the dismissal of 300 Air Zimbabwe workers in 2015, following a court ruling known as the Zuva Petroleum judgment. The workers successfully challenged the dismissal in the Supreme Court in 2020 and were reinstated with full benefits. 

However, upon their return, the airline placed them on unpaid leave while it underwent reconstruction under the Reconstruction of State Indebted Insolvent Companies Act.

This reconstruction process led to a new retrenchment exercise in March 2021, with Air Zimbabwe offering the workers minimum terminal benefits according to the Labour Act. 

The workers challenged this retrenchment, arguing that the process was flawed. However, both the National Employment Council for the Air Transport Industry and now the Labour Court have sided with Air Zimbabwe.

Key Takeaway: Accepting Retrenchment Package Waives Procedural Objections

The Labour Court’s decision hinges on the principle that accepting a retrenchment package signifies acceptance of the termination terms. 

Justice Custom Kachambwa stated, “The appellants [workers] were reinstated and they waived their right to the procedure for retrenchment.” This aligns with past cases where employees accepting retrenchment packages were seen as having waived their right to contest procedural irregularities.

The court further noted that the workers acknowledged receipt of retrenchment letters and their back pay, exceeding what they were initially owed. 

Justice Kachambwa emphasized, “They cannot then cry foul saying that they did not know that the back pay included their retrenchment package.”