Muchanyara Mukamuri v Zimbabwe National Network for People Living with HIV

The applicant was formerly employed by the respondent, a non-governmental organization, on a contract basis as Executive Director. The respondent is funded by foreign organizations and receives donations from foreign entities. During her employment, the applicant was remunerated in United States Dollars. Upon termination of her employment, she sought payment of salary arrears and cash in lieu of leave. A labour officer ruled in her favour, awarding her USD 37,180. This award was confirmed by the Labour Court in January 2021 under LC/H/73/2021. The respondent then indicated its intention to pay the judgment debt in Zimbabwean dollars at an exchange rate of 1:1 (one Zimbabwe dollar to one United States dollar), rather than in United States Dollars as awarded. The applicant approached the High Court seeking a declaratur that she be paid in United States Dollars and that the respondent's conduct of seeking to pay in Zimbabwean dollars be declared unlawful.

• Whether the High Court had jurisdiction to grant a declaratur regarding the currency of payment of a Labour Court award
• Whether the applicant met the requirements for obtaining a declaratur under section 14 of the High Court Act
• Whether the judgment debt should be paid in United States Dollars or Zimbabwean dollars in light of the provisions of section 4(1)(d) of Statutory Instrument 33/19
• Whether the respondent's foreign currency obligations fall within the exclusions provided in section 44C(2) of the Reserve Bank Act
• Whether costs on a higher scale were justified

1. The offer by the respondent to pay the applicant the amount ordered by the court under LC/LRA/325/17 in Zimbabwean dollars was declared unlawful and invalid. 2. The respondent must pay the applicant the amount of USD 31,200 (Thirty One Thousand Two Hundred United States Dollars) granted by the Labour Court under L/H/LRA235/17 in United States Dollars. 3. The respondent to pay ordinary costs.

Where an employer is a foreign-funded organization operating a nostro foreign currency account and has paid employees in foreign currency, salary obligations constitute 'foreign obligations' under section 44C(2)(b) of the Reserve Bank Act and are exempt from the provisions of SI 33/19 requiring payment in local currency. Funds held in nostro foreign currency accounts are excluded from the application of electronic currency provisions. Where a party has established entitlement to payment in foreign currency and the debtor has the capacity to pay in that currency without contravening the law, courts will enforce payment in the foreign currency awarded. The requirements for obtaining a declaratur under section 14 of the High Court Act are: (1) the applicant must be an interested party; (2) there must be an existing, future or contingent right or obligation which is the object of inquiry; and (3) there must be interested parties upon whom the declaration will be binding.

The court observed that both creditors and debtors continue to experience difficulty in determining which debts can be paid in foreign currency versus local currency, especially where initially denominated in United States Dollars, due to the amendments to the Reserve Bank Act, the Finance Act, and various monetary policies introduced through statutory instruments since 2019. The court noted that this confusion justifies not imposing punitive costs on litigants navigating these complex issues. The court also commented that the respondent's assertion that the Labour Court award did not specify United States Dollars (only prefixing the amount with a dollar sign) was 'mischievous' and constituted 'patent dishonesty' given the context of the judgment and the undisputed fact that the applicant had always been paid in United States Dollars.

This case is significant in Zimbabwean jurisprudence as it clarifies the application of currency legislation (SI 33/19 and amendments to the Reserve Bank Act) to foreign-funded organizations and their employment obligations. It establishes that organizations funded through foreign currency nostro accounts fall within the exclusions provided in section 44C(2) of the Reserve Bank Act, and their salary obligations constitute 'foreign obligations' exempt from local currency conversion requirements. The judgment demonstrates judicial willingness to enforce foreign currency judgments where the debtor has access to foreign currency and the obligation arose in that currency, despite general legislative trends toward local currency denominations. It also reaffirms the High Court's jurisdiction to grant declaraturs in employment-related matters where such relief cannot be granted by the Labour Court.