Labour ministry fines hotel K120,000 administrative penalty for breaches

Zambia’s Ministry of Labour and Social Security has imposed an administrative penalty of K120,000 on New Century Diamond Hotel for multiple breaches of labour laws, the ministry said on Thursday.

Ministry Principal Public Relations Officer, Mwaka Ndawa, said an inspection at the hotel found that employees were not issued valid written contracts and that the hotel had failed to maintain records of oral contracts, a payroll or employee pay slips.

The hotel also lacked workplace policies, Ndawa said in a statement.

Other violations included paying workers below the prescribed minimum wage, contrary to Statutory Instrument No. 48 of 2023, and reducing wages of employees who fell sick despite presenting certified sick notes, she said.

The hotel, which employed more than 25 workers, had also failed to register as an employer with the Office of the Labour Commissioner, contrary to the Industrial and Labour Relations Act, Ndawa said.

It was also operating without a qualified Human Resource Officer, contrary to the Zambia Institute of Human Resource Management Act, she said.

In addition to the penalty, the ministry directed the hotel to provide all employees with written contracts stating their positions and correct salary scales, place workers on payroll and issue pay slips, and make workplace policies available.

The hotel was also ordered to pay all salary underpayments, stop unauthorised deductions, register as an employer and engage a qualified Human Resource Officer.

“Salary arrears owed to affected employees and separation packages were computed by the ministry and have since been paid by the hotel prior to signing new one-year contracts of employment,” Ndawa said.

She said the hotel had been ordered to pay the K120,000 administrative penalty by Friday, Sept. 25, 2026.

Ndawa reminded employers that workers were entitled to clear terms of employment, lawful remuneration and appropriate workplace protections, and urged full compliance with labour laws to safeguard workers’ rights and promote decent work.

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