Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Minimum Wage Raised as of January 1, 2024

New Order or Decree

Authors: Hope Ndao, Partner, and Peter Chomba, Senior Associate – Mulenga Mundashi Legal Practitioners

With effect from January 1, 2024, the minimum wages payable to protected employees falling under the category of general workers (such as drivers, cleaners, receptionists, guards, sales assistants, qualified clerks, and pump attendants), shop workers (such as assistant clerks, assistant dispatch clerks, dispatch clerks, check-out operators, machine operators, typists, and salespersons) and domestic workers have been increased.

With respect to general workers and shop workers, the Orders clarify that employees whose conditions are better than the minimum gross pay provided in the Orders are expressly precluded from relying on the Orders. Accordingly, employers with employees falling under the category of protected workers must review and adjust their payroll practices to comply with the new minimum wage increases.

Constitutional Requirement to Keep Employees on Payroll for Unpaid Gratuities

Precedential Decision by Judiciary or Regulatory Agency

Authors: Hope Ndao, Partner, and Peter Chomba, Senior Associate – Mulenga Mundashi Legal Practitioners

On February 7, 2024, the Court of Appeal clarified that in order for an employee to be entitled to be retained on the payroll for unpaid gratuity or other pension benefit, the cessation of employment must be triggered by retirement or akin circumstances and not by resignation of an employee. The Court further clarified that the unpaid gratuity that entitles an employee to be retained on the payroll is gratuity that is provided for under some pension or other law, and that contractual gratuity (even where such contractual gratuity is provided to comply with the Employment Code Act 2019) will not qualify.

Clarification on Payment of Pension Benefits Payable under Pension Fund/Scheme

Precedential Decision by Judiciary or Regulatory Agency

Authors: Hope Ndao, Partner, and Peter Chomba, Senior Associate – Mulenga Mundashi Legal Practitioners

On February 9, 2024, the Constitutional Court held that an employer is only required to keep an employee on the payroll until the employee has been paid the pension benefits accrued to the employee under the employment contract. An employer is not required to maintain an employee on the payroll where the pension benefits to be paid are payable by a separate pension scheme or fund that is outside the control and mandate of the employer. Where the pension benefits are to be paid by a pension fund or scheme that is separate from the employer, the pension benefits are to be paid in accordance with the rules of such pension fund/scheme.