Under Zambian law, redundancy is a formal process with specific protections for workers. When an employer terminates an employee's contract due to redundancy, the employer must notify the Labour Commissioner at least 60 days in advance, providing details about the reasons for redundancy, the number of employees affected, and the proposed redundancy package [Employment Code Act, S.55].
An employee terminated by redundancy is entitled to a minimum redundancy payment of two months' pay for every year of service, unless better terms have been agreed between the employer and employee [Employment Code Act, S.55(3)(a)]. The employer must pay this redundancy payment by the employee's last day of duty. However, if the employer cannot pay on that date, the employer must continue paying on agreed terms [Employment Code Act, S.55(3)(b)].
In exceptional cases where an employer faces genuine financial difficulty, they may apply to the Labour Commissioner for an exemption from paying the redundancy package as a lump sum [Employment Code Act, S.56(1)]. Any such application must be accompanied by proof of financial incapacity and, if the employer proposes to pay in instalments, a detailed payment plan with specific dates [Employment Code Act, S.56(2)].