Jira & Confluence 
Bitrix24 Retrenchment · minimum package · Labour Act s. 12C
Retrenchment package calculation in Zimbabwe — the legal minimum, notice pay and what else you are owed
Short answer. Enter your salary and dates and see the minimum package the law gives you — one month's salary for every year of service. Minimum package: one month's salary or wages for every year of service; a lesser proportion for part of a year — unless better terms are agreed (SI 191 of 2024, s. 5).
- Notice of intention to retrench — at least 14 days before (s. 12C(3))type the date
- Employer notifies the Retrenchment Board — within 14 days after (s. 12C(5))type the date
- If the Board was not notified, the full package vests in you — 21st day after (s. 12C(5))type the date
Check your own case.
Dates from section 12C of the Labour Act as substituted in 2023. Count them from your own retrenchment date.
Start typing right in the document — no sign-up. It stays in this browser; save it to your free Layers account to keep it, open it on your phone and share it.
Minimum retrenchment package
Your retrenchment package — one month's salary for every year of service, plus what else you are owed
Your monthly salary, the day you started and the day the retrenchment takes effect. You see your years of service, the legal minimum, notice pay and the total — and a Word letter asking your employer for the figures in writing.
- Send the letter: ask for the calculation, the payment dates and a copy of the notice to the Retrenchment Board — in writing.
- Compare the employer's offer with the minimum. Better terms can be negotiated, together with your colleagues or your union.
- Not paid on time? Go to the Retrenchment Board with an affidavit; it can issue a non-compliance certificate you can enforce at the Labour Court.
Arithmetic: package = monthly salary × years of service (SI 191 of 2024, s. 5: one month for every year, a proportion for part of a year); years = full months + the share of the current month, ÷ 12; notice pay = salary × months of notice not worked (Labour Act s. 12(4), 12(7)); 25% = the least an employer pleading incapacity must pay (s. 12C(9)). Before tax; better terms can be agreed. Not legal advice.
Lida, Layers template assistant
Give me your salary and your dates and I'll work out your minimum retrenchment package.
The letter below asks your employer for the figures in writing.
Deadlines
The rules, with the source
| What | Deadline | Source |
|---|---|---|
| Minimum package | One month's salary or wages for every year of service; a lesser proportion for part of a year — unless better terms are agreed | SI 191 of 2024, s. 5 |
| Notice | 3 months on a permanent contract or one of 2 years or more; less on shorter contracts | Labour Act, s. 12(4) |
| Notice waived | If the employer ends the contract without notice, you are paid for the notice period | Labour Act, s. 12(7) |
| Employer can't pay | It must still pay at least 25% of the package and apply for exemption for the rest | Labour Act, s. 12C(9) |
| Better package | Within 60 days of the Board's certificate you can claim an enhanced package if the employer can pay | Labour Act, s. 12C(13) |
The old rule — one month for every two years — was replaced: section 12C was substituted in 2023 and SI 191 of 2024 set one month for every year. Amounts are before tax.
Step by step
What to do, in order
1
Enter salary and dates
Your monthly salary, first day of work and the date the retrenchment takes effect.
2
Add what else is owed
Notice pay if you don't work your notice, leave days not taken, unpaid wages.
3
Ask for it in writing
The Word file has the calculation and a letter to your employer.
Questions
How is a retrenchment package calculated in Zimbabwe?
The minimum is one month's salary or wages for every year of service, and a share of a month for part of a year (SI 191 of 2024, section 5). 12 years and 7 months on US$800 a month is about US$10,062. Employers and workers can agree a better package.
Is it still one month for every two years?
No. That was section 12C(2) as amended in 2015. Section 12C was replaced by the Labour Amendment Act, 2023, and the Labour (Retrenchment) Regulations, 2024, gazetted on 6 December 2024, set one month for every year.
Is notice pay on top of the package?
The package is compensation for losing your job. If the employer ends your contract without letting you work your notice, section 12(7) says you are paid for the notice period — 3 months on a permanent contract.
What if my employer says it can't pay?
It must still pay at least 25% of the package and apply to the employment council or the Retrenchment Board for exemption from the rest (section 12C(9)). If the package isn't paid, you can go to the Retrenchment Board and then the Labour Court.
Is the retrenchment package taxed?
Part of it may be exempt from income tax, but we haven't checked ZIMRA's current rules, so the calculator works before tax.
Is it free? Do I need to sign up?
It's free and you don't need an account: fill it in and download. With a free account you can save a copy to your Layers and come back to it later.
Official sources
Other documents
Keep the papers in one place
Letters, receipts and notices in one folder you can share with family or a lawyer. The templates and the editor are free; Layers is free for up to 20 people.
A calculation and a letter template, not legal advice. Before tax.