NetOne Executives on three-month contract termination notice

State owned telecommunication company NetOne last week dismissed four executives on a contentious three-month contract termination basis.

The four include the company’s Chief Executive Officer Lazarus Muchenje, Chief Technology Officer Darlington Gutu, Brand Manager Loveness Goverah and Tauya Mugwagwa.

Before the sacking, the body had reinstated Muchenje after dropping corruption allegations against him.

The termination letter in possession of TechnoMag cited the Labour Act (Chapter 28.01) as the foundation of the quartet’s dismissal.

“I wish to inform you that the Company has decided to exercise its right in terms of the Labour Act (Chapter 28.01) and in terms of the common law to terminate your contract of employment on notice. Section 12 (4) of the Labour Act requires either party to give the other party three (3) months’ notice to terminate the employment contract, in the event that a party wishes to terminate the contract.

This letter, therefore, serves as notice to terminate your contract with NetOne Cellular (Pet) Limited on three (3) months’ notice. Your notice is with effect from, 31 July 2020, and runs up to 31 October 2020. In this regard, NetOne Cellular (Pvt) Limited elects to immediately pay you your salary and benefits for the entire notice period ending 31 October 2020 without requiring you to attend work,” reads one of the termination letters.

However, Legal experts have commented that the section of the law has been struck off following precedence over other matters that challenged it.

The labour act which became popular in 2015 states that companies can unilaterally end workers’ contracts at any time, without offering them layoff benefits, by giving them three months’ notice.

It was not yet clear whether the NetOne executives have accepted the notice or they will be taking another legal challenge.

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