admincouncil indicated the worker’s gratuity for seven years of service will be paid in Zimbabwe dollars.
Zimbabwe transitioned to multi-currency in February 2009 after a decade of hyperinflation and economic instability eroded the value of the local currency.
A basket of currencies mainly comprising the US dollar, the British pound, the South African rand and the Botswana pula is now being used in Zimbabwe.
But ICZ wrote to its former accounting officer, Ms Elizabeth Sabao, last week advising her that she would be paid a total of Z$6,5 billion as her gratuity. A letter written and signed by ICZ executive director Mr Steve Bonney requested the employee’s bank details to have the money paid into her account.
“We confirm having established from your staff file that your final salary in December 2008 was
Z$5 502 060 954. In accordance with the current NECII collective bargaining agreement this calculates to a gratuity of Z$6 547 452 535. NECII is in agreement with our method of calculation,” said Mr Bonney.
Added Mr Bonney: “If you could provide us with your address and Z$ bank account details we will approach our bankers to find out how (if) this money could be paid.”
Yesterday Mr Bonney refused to comment on the issue saying he “does not speak to the Press”.
The development has sucked in the Insurance Employees’ Union of Zimbabwe who have questioned the logic and practicality of such a decision.
IEUZ secretary-general Mr Moses Hunga dismissed claims by Mr Bonney that the National Employment Council for Insurance Industry okayed the decision.
“I spoke to NECII secretary-general (Patrick) Zindova and he indicated that what he was in agreement with was that the ex-employee should be paid her gratuity not that she be paid the gratuity in the Zimbabwe dollar currency.
“The Government said no one should use the Zim dollar in the multi-currency regime.
“When someone leaves employment, it does not matter whether the case is concluded or payment is made at the current rate. Since using (predominantly) the US dollar, it is the currency they should use,” he said.
“I do not know if Bonney did not get this for him to sign such a mocking letter. We want him to show us where she (Sabao) can buy using Zim dollars.”
An employee who serves for more than five years in an institution is entitled to gratuity, regardless of circumstances around termination of employment calculated by multiplying the appropriate
percentage of his/her current monthly wage by the number of completed years of continuous service.
Online Reporter