Labour ministry intervenes in contractual dispute between Young Phiroz, workers

The Ministry of Labour and Social Security says it has intervened to assist 94 workers from Young Phiroz General Dealers in securing redundancy packages after a contractual dispute led to the termination of their employment.

The affected employees had lodged a complaint about three weeks ago, demanding their dues from previous contracts following the introduction of revised employment terms by the company.

Ministry Principal Public Relations Officer, Mwaka Ndawa, said in a statement issued in Lusaka that the company was summoned and engaged in a meeting with its workers to resolve the matter.

The Ministry provided guidance based on Section 23(2) of the Employment Code Act, which requires employers to obtain workers’ consent when altering terms of a written contract.

Ndawa explained that employees have the right to reject such changes. Where an employee does not consent, Section 55(1)(c) of the Act considers the contract terminated by reason of redundancy.

“In this case, the workers did not agree to the altered contracts and were subsequently declared redundant,” Ndawa said.

Following this, the Ministry calculated the total redundancy package to be K1,128,590.87. Young Phiroz committed to settling the amount in three installments.

The first payment of K545,274.43 was made on April 12, 2025.

“Workers owed below K9,000 have been fully paid, while those owed more than K10,000 will receive K5,000 in the first phase, with the balance to be paid on May 12, 2025,” Ndawa said.

She added that the workers have since expressed appreciation for the Ministry’s swift intervention, which ensured their rights were protected.

“This case sets an example for employers who attempt to exploit workers. Government will continue to ensure that employees receive what is legally due to them,” she said.

Ndawa also announced that the affected workers will be enrolled in mentorship programmes under the newly launched ‘Productivity Clinic’ by the National Productivity Development Department (NPDD) to support their transition into alternative livelihoods.

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