The plaintiff was a former employee of the defendant who requested an early retirement package three months before reaching retirement age. In October 2010, the parties negotiated and signed an agreement on 5 October 2010 for an early retirement package totaling USD$25,873.12 to be paid by 31 December 2010. The package included statutory benefits (USD$11,148.00) comprising 3 months notice pay, cash in lieu of leave, leave bonus, housing benefits, and other benefits (USD$14,725.12) including a vehicle, annual bonus, fuel, school fees, service pay and additional gratuities. The plaintiff was told to stay at home during the notice period, as was the defendant's standard practice for retiring employees in sensitive positions. The plaintiff requested that payment be deferred until after 31 December 2010 to avoid punitive tax obligations. During October-December 2010, the plaintiff received monthly salary payments. The plaintiff claimed an additional USD$8,936.56, believing that the monthly salaries he received were separate from the agreed notice pay in the retirement package. The defendant contended it had paid all amounts due and that the monthly payments constituted the cash in lieu of notice.
The plaintiff's claim was dismissed with costs.
Section 171(1)(a) of the Constitution of Zimbabwe Amendment (No. 20) Act, 2013, which provides that 'The High Court has original jurisdiction over all civil and criminal matters throughout Zimbabwe', overrides section 89(6) of the Labour Act [Chapter 28:01] and reinstates the jurisdiction of the High Court over labour matters at first instance. The Labour Court no longer enjoys exclusive jurisdiction over labour matters at first instance as that exclusivity, which was based on an act of Parliament, has been overridden by the Constitution. It is therefore no longer necessary to consider whether a matter is 'purely labour' at first instance before the High Court can assume jurisdiction to determine it. In civil matters, the plaintiff must prove their case on a balance of probabilities, meaning the evidence must carry a reasonable degree of probability such that the court can say it is more probable than not that the plaintiff's version is correct.
The court observed that even if it had been necessary to determine whether this was a 'purely labour' matter (before the constitutional changes), the facts would not have supported such a classification. The court noted that agreements which emanate from contracts of labour, where the cause of action and remedy are at common law, are enforceable on the basis that they are not 'purely labour' matters. The court also commented that while the defendant may have been 'crafty or devious' in its negotiations with the plaintiff, if the plaintiff unwittingly agreed to terms he later found disadvantageous, it was not the court's place to rectify this when he had agreed to and signed the agreement based on what he believed he was entitled to receive. The court expressed some sympathy for the plaintiff's position, noting he appeared to be under a mistaken impression that 'package' referred to a lump sum payment rather than understanding the payment structure, but held this did not entitle him to relief.
This case is significant in Zimbabwean constitutional and labour law as it established that the Constitution of Zimbabwe Amendment (No. 20) Act, 2013 restored the High Court's original jurisdiction over labour matters at first instance, thereby overriding the Labour Court's previously exclusive jurisdiction under section 89(6) of the Labour Act. The judgment demonstrates the supremacy of constitutional provisions over ordinary legislation and marks an important shift in the court hierarchy for labour disputes. The case also provides guidance on the interpretation of retirement package agreements and the application of the balance of probabilities standard in civil cases involving labour disputes.