Court limits NECs' powers in labour disputes

Court limits NECs' powers in labour disputes
Published: 30 September 2025
The Supreme Court has clarified that National Employment Councils (NECs) no longer have authority to handle certain labour disputes following the enactment of the Labour Amendment Act No. 11 of 2023. The landmark ruling came from a case involving Richards and Company (Pvt) Ltd in Masvingo and former employee Constantine Nyenya.

Previously, an arbitrator from the NEC had ordered the reinstatement or compensation of Nyenya after his dismissal. However, Richards and Company challenged the ruling, arguing that the arbitrator lacked legal authority because the amendment had replaced voluntary NECs with statutory employment councils. The Supreme Court agreed, declaring the NEC's decision invalid.

Justices Antonia Guvava, Lavander Makoni, and Samuel Kudya emphasized that workplace disputes must now be handled strictly under the new legal framework, observing statutory time limits and proper procedures. The court decreed that the appeal be allowed and the prior Labour Court judgment set aside, effectively nullifying the NEC arbitrator's determination.

The case initially arose when Richards and Company's dismissal of Nyenya was overturned by the Local Joint Committee, which directed reinstatement or compensation. The matter was later referred to arbitrator GM Chibaya, who issued a determination in April 2024. Richards and Company argued that Chibaya, appointed under the now-defunct voluntary NEC system, lacked jurisdiction under the amended law, and that the determination exceeded statutory time limits.

While Nyenya's legal team contended that the amendment did not retroactively revoke previously registered councils, the Supreme Court rejected this, confirming that the Labour Amendment Act effectively abolished the voluntary NEC system. Because the dispute was adjudicated after the law's enactment, Chibaya's ruling was deemed ultra vires and legally null.

The judgment underscores the importance of adhering to statutory frameworks and deadlines in labour disputes and signals a significant shift in Zimbabwe's labour law. The Labour Amendment Act No. 11 of 2023 streamlines dispute resolution mechanisms, replacing voluntary employment councils with statutory bodies to modernize the sector and ensure compliance with the law.
- Sunday News
Tags: NEC,

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