Online Reporter
Fidelis Munyoro
Chief Court Reporter
IN a landmark decision that reshapes Zimbabwe’s labour law landscape, the Supreme Court has issued a definitive ruling clarifying the limits of National Employment Councils’ (NECs) authority under the Labour Amendment Act No. 11 of 2023, which came into
effect in July.
The judgment, hailed as a turning point in workplace dispute resolution, sharpens the procedural framework for resolving labour grievances in alignment with the updated legislation.
The ruling arose from the case Nyenya v N. Richards & Co (Pvt) Ltd & Anor (SC207/25), where the Supreme Court bench—comprising Justices Antonia Guvava, Lavander Makoni, and Samuel Kudya overturned a Labour Court decision through a consented appeal.
In their succinct yet powerful ruling, the court decreed:
“It is ordered by consent that the appeal be and is hereby allowed with no order as to costs. The judgment of the court a quo under LC/MD/24 dated June 27 2024, as corrected on August 16 2024, be is hereby set aside and substituted with…The appeal for review
be and is hereby dismissed with no order as to cost.”
At the heart of the dispute was the principle of jurisdiction.
The Supreme Court underscored that matters falling outside the legal purview of NECs are unsustainable under the law.
This interpretation reinforces the necessity for disputes to be addressed strictly within the forums designated by the amended labour framework.
The decision not only clarifies procedural boundaries but also emphasises the legislative intent behind the Labour Amendment Act No. 11 of 2023, ensuring fairness and consistency in workplace dispute resolution.
The ripple effects of this ruling are expected to be profound, influencing employers, employees, and the legal fraternity as the nation’s labour laws continue to evolve.
The case first unfolded before the Labour Court, presided over by Justice Betty Chidziva, where a significant jurisdictional challenge was addressed in June 2024.
The dispute involved Richards and Company Masvingo (Applicant), Constantine Nyenya (1st Respondent), and Mr GM Chibaya (2nd Respondent).
The conflict originated when the Local Joint Committee overturned Richards and Company’s decision to dismiss an employee, ordering the employee’s reinstatement or compensation. Notably, this ruling was made before the enactment of the Labour Amendment
Act No. 11 of 2023, which came into force on July 14, 2023.
The matter escalated to the Negotiating Committee in March 2023, with a final determination issued by arbitrator Mr G.M Chibaya in April 2024.
However, Richards and Company challenged the validity of Mr Chibaya’s authority, arguing that the Labour Amendment Act had abolished the voluntary system of National Employment Councils and replaced them with Statutory Employment Councils.
Richards and Company contended that Mr Chibaya, a designated agent under the now-defunct voluntary system, lacked the authority to adjudicate the dispute following the legislative changes.
They also argued that the determination, issued nearly a year after the dispute arose, was invalid as it exceeded statutory time limits.
In response, Nyenya, represented by Advocate Caleb Mucheche, defended the referral of the matter to Mr Chibaya, asserting that the amendment did not retroactively revoke the status of previously registered Employment Councils without formal deregistration.
The court, however, dismissed a procedural challenge by Richards concerning the form of opposition filed by Nyenya.
More importantly, it found that Mr Chibaya had no jurisdiction to handle the case. The Labour Amendment Act had clearly stipulated time limits and statutory frameworks, effectively nullifying the authority of voluntary Employment Councils.
Because the dispute was initiated before the amendment but determined after it, and no legal provision allowed for continuity under the old regime, the court declared Mr Chibaya’s determination null and void.
This judgment underscores the critical importance of statutory authority and adherence to procedural timelines in labour dispute resolution.
By ruling that Mr Chibaya’s actions were ultra vires (beyond legal power), the court has sent a clear message about the need for strict compliance with legislative changes.
The ruling also highlights the broader implications of the Labour Amendment Act No. 11 of 2023, which seeks to modernise Zimbabwe’s labour laws by streamlining dispute resolution mechanisms and ensuring that they align with statutory mandates.
As Zimbabwe’s labour landscape continues to evolve, this landmark decision serves as a reminder to both employers and employees of the importance of understanding the legal frameworks governing workplace disputes and the consequences of failing to do so.
