Supreme Court defers Zim dollar case

Published: 12 September 2013

The Supreme Court yesterday deferred to tomorrow the case which some 39 workers who were unlawfully dismissed from work in 2005 are seeking to recover their damages in United States dollars.

Chief Justice Godfrey Chidyausiku sitting with four other judges deferred the matter to allow Fleximail Private Limited and its 39 workers to agree on the rate at which the Zimbabwean dollar damages could be converted to the operational currency.

When Government introduced the multi-currency system in February 2009, it did not indicate the rate that should be used to convert debts and other liabilities denominated in Zimbabwe dollars to the international currencies.

That created a legal problem that has resulted in many cases flooding the courts without a proper legal position of how creditors will recover their debts.

Workers who are owed Zimbabwean dollars by their employers as well as several other individuals and companies who are owed debts dating back to the pre-February 2009 period, are set to benefit from the outcome of the case.

The court would interpret the law to end the confusion that has been reigning supreme in legal and business circles. If Fleximail wins the case, it means there would be no reason to execute judgment relating to cases of the pre-2009 era, but if the workers win, a floodgate of lawsuits may arise from many individuals and entities.

Fleximail dismissed the 39 workers in 2005 after finding them guilty of misconduct.

The workers challenged the decision and took the matter up to the Labour Court in 2007 where they got an order for reinstatement. If reinstatement was no longer possible, the workers were given an option of damages.

Fleximail indicated that it wanted to pay the workers and tendered a cheque of Z$12 594 (revalued) on February 11, 2009 when the multi-currency system was already in place.

The workers rejected the Zimbabwe dollar damages because the currency had become moribund. They returned the cheque that had been tendered by Fleximail.

The workers approached the High Court after failing to get payment in US dollars and Justice Andrew Mutema in 2011, ruled in the workers' favour.

That prompted Fleximail to appeal against the decision at the Supreme Court.

Yesterday, Mr Caleb Mucheche and Mr Munyaradzi Gwisai appeared for the 39, while Advocate Fadzai Mahere acted for Fleximail.

An independent lawyer Advocate Thabani Mpofu was invited to assist with legal opinion as a friend of the court (amicus curiae).
- herald