A former Zimbabwe Consolidated Diamond Company (ZCDC) employee, Linda Chiyangwa has won a US$200 000 claim against her former employer who verbally dismissed her in 2016.
This follows her successful application for quantification of damages at the Labour Court.
Chiyangwa had however claimed US$1 446 738, 75 as salaries and back pay in lieu of reinstatement for a period running from July 2016 to January 2023.
She had also claimed punitive damages amounting to US$624 000 in addition to pension and medical aid.
ZCDC rejected paying Chiyangwa arguing that the amounts claimed were absurd and unwarranted given the fact that she found alternative employment from March 2018 to August 2021.
The company also averred that Statutory Instrument 33/2019 must apply in the payment of the damages.
The Statutory Instrument effectively recognised RTGS payment as legal tender and directed adaptation of the US dollar-denominated assets and liabilities at the fixed rate of one-to-one.
Chiyangwa was employed as Head of ICT by Marange Resources (Pvt) (Ltd) from 2014 to February 2016.
After an initiative from the government to have all diamond companies under one company, Marange Resources was joined to the ZCDC which in turn then absorbed all of Marange's employees.
Chiyangwa effectively began to work for ZCDC on 1 March 2016.
Her last payslip from Marange Resources was February 2016 and the ones from ZCDC started in March 2016.
Under Marange Resources, she was getting paid a gross salary of USD$10 124, 00 per month.
After the change to ZCDC, she was getting paid a gross salary of USD $10 400, 00 per month.
On 5 July 2016, ZCDC offered Chiyangwa a new contract of employment which was a fixed term contract of six months and less pay.
She raised these queries as she had been under permanent employment at Marange Resources and refused to affix her signature to the document until she had received clarifications.
Chiyangwa was then verbally dismissed on the spot on 15 July 2016 by the Chief Executive Officer and ordered to pack her belongings and leave the premises.
Her company vehicle was also confiscated in the altercation.
The Labour Officer seized with the matter and found that she was unfairly dismissed from employment and that ZCDC should reinstate her, failure of which they were to pay damages in lieu of reinstatement.
The Labour Court sitting at Mutare on 18 January 2023 confirmed the Labour Officer's draft ruling.
In determining Chiyangwa's situation Labour Court judge, Justice Murasi said where an employee has been unfairly dismissed and the court considers reinstatement as the more appropriate remedy and grants it, the employer must still be given the option to pay damages in lieu of reinstatement.
"Thus damages in this context are awarded as an alternative and are not the primary remedy," said the judge.
Murasi said Statutory Instrument 33/2019 provides that all assets, and liabilities valued and expressed in the United States dollar on and before the effective date (19 February 2019) shall on and after the effective date be deemed to be valued in RTGS dollars at a rate of one to one to the United States dollar.
He said Chiyangwa had obtained alternative employment in 2018, which is two years after her dismissal but failed to give dates, something which weighed against her claim in this case.
"It was crucial that this information be availed when her matter was deliberated by the Labour Officer.
"It was even more crucial to disclose such information during confirmation proceedings as the latter proceedings would result in."
"The disclosure certainly had a bearing on the quantum of damages which were available to the applicant. The calculation of damages would be based on such information," he said.
It was not disputed that Chiyangwa found alternative employment running from March 2018 to August 2021 by Twenty Third Century Systems.
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The document submitted by the applicant shows that she was earning a salary of US$1000-00.
"Henceforth, the Respondent shall pay damages in lieu of reinstatement for 20 months.
"Back pay owed by ZCDC is US$10 400, 00 multiplied by the total number of months unemployed.
"Total owed in back pay would be USD $208 000, 00.
"Fuel at 200 litres per month for 20 months which can be paid either as the fuel itself or the equivalent on date of payment.
The applicant is also entitled to notice pay in the sum of USD$31200-00," ruled the judge.
Murasi said cash in lieu of leave can only be claimed up to 2018 and according to Chiyangwa's claim, this amounts to USD$13 706-34.
He also ordered ZCDC to pay her 4000 litres of fuel or its equivalent on the date of payment giving a 30 days ultimatum from the date of the order to do so.
