The respondent was employed by the appellant as a Farm Manager in November 2008. On 30 November 2009, he was given one month's notice of termination of services without prior warning, effective from 1 December to 31 December 2009. On 21 December 2009, the appellant paid the respondent $2,100 comprising payment shortfalls, leave pay, and termination benefit. The respondent lodged a complaint with a Labour Officer on 8 February 2010, which was referred to compulsory arbitration after no settlement was reached. The respondent was unemployed for four months after dismissal, securing alternative employment in May 2010 at $500 gross monthly salary without benefits, significantly less than his previous remuneration. The arbitrator awarded the respondent $35,434.00 in damages calculated over nine months across various headings including salaries, medical aid, school fees, accommodation, fuel, utilities, tobacco seed, and commission. The appellant appealed to the Labour Court, which dismissed the appeal and upheld the arbitrator's award.
1. The appeal was allowed with costs. 2. The order of the Labour Court was set aside and substituted with an order allowing the appeal. 3. The arbitral award dated 21 July 2010 was set aside and substituted with an order granting absolution from the instance in favour of the appellant (employer).
In wrongful dismissal cases, damages must be calculated based on proper evidence and limited to the period between dismissal and the date when alternative employment is actually secured. An employee bears the onus of proving entitlement to damages beyond amounts already paid by the employer. An arbitrator or court cannot make awards based on arbitrary periods or amounts without evidentiary foundation. Where no evidence supports the quantification of damages, absolution from the instance should be granted. The duty to mitigate loss arises immediately upon dismissal, and compensation is limited to the actual period of unemployment or, if alternative employment pays less, the difference must be proven with evidence.
The court made reference to the principle that where an employee secures alternative employment paying considerably less than former earnings, the employee may be entitled to compensation for the difference in both salary and benefits "in order for justice to be done." However, this principle still requires proper evidence to substantiate such claims. The court also noted that the arbitrator's method of calculating awards for tobacco seed and commission based on percentages of the 2009 harvest (when the current season's tobacco had not been sold) lacked proper justification, though this was not necessary to the final determination given the broader evidentiary failures.
This case clarifies important principles in Zimbabwean labour law regarding the quantification of damages in wrongful dismissal cases. It emphasizes that: (1) damages must be based on proper evidence, not arbitrary calculations; (2) the onus lies on the employee to prove entitlement to damages beyond what was already paid; (3) damages are limited to the actual period of unemployment before alternative employment is secured; (4) the duty to mitigate loss arises immediately upon dismissal; (5) courts and arbitrators cannot simply estimate figures without evidentiary foundation; and (6) appellate courts will set aside awards that are wholly unreasonable or lack evidentiary basis. The case reinforces procedural fairness and the requirement for evidence-based decision-making in employment disputes.