EMPLOYEES who resign or are dismissed for misconduct are not entitled to severance pay, Labour Commissioner Givens Muntengwa has clarified, urging both workers and employers to fully understand the terms of employment contracts and labour law provisions.
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Muntengwa stated that severance pay only applies when an employer initiates the termination of employment, typically in cases of redundancy or when a company decides it no longer needs a worker’s services.
He said this during an inspection of Khalif Motors company in Ndola.
“If it’s not the employer who has terminated your contract and if you resigned, were dismissed, or misconducted yourself, then you are not entitled to severance pay. But if it is the employer that has decided they no longer need your services, you may be entitled to either gratuity or severance, depending on the terms,” Muntengwa explained.
The Labour Commissioner outlined that severance pay is calculated at three months’ salary for each year of service, while redundancy pay is typically two months’ salary per year.
He noted that workers need to understand the difference between the two, especially in cases of restructuring, downsising or company closures.
Muntengwa also addressed concerns among drivers and other workers both locally and abroad regarding gratuity, emphasising that employees on permanent and pensionable terms are generally not entitled to gratuity, unless it is specifically included in their employment contract or negotiated through a collective agreement.
“If gratuity is not in the contract, and there’s no provision in a collective agreement, then an employee is not entitled to it. However, some unions use their negotiating power to secure gratuity terms for their members and in such cases, the collective agreement stands.”
The commissioner further urged workers to pay close attention to the details in their contracts and encouraged unions to play a proactive role in negotiating clear and fair termination benefits.
By Sharon Zulu
Kalemba October 4, 2025
