Employment Code (Exemption) Regulations, 2020

1. These Regulations may be cited as the Employment Code Title (Exemption) Regulations, 2020.

2. In these Regulations, unless the context otherwise requires— “management” has the meaning assigned to the words in the Industrial and Labour Relations Act.

3. A person, class of persons, trade, industry or undertaking listed in the Schedule is exempted from the provisions specified in the Schedule. Interpretation Cap 269 Exemptions No. 3 of 2019 Copies of this Statutory Instrument can be obtained from the Government Printer, P.O. Box 30136, 10101, Lusaka, Price K4.00 each 222 Statutory Instruments 8th May, 2020 SCHEDULE (Regulation 3) PERSON, CLASS OF PERSONS, TRADE, INDUSTRY OR UNDERTAKING TO WHICH SECTION IS NOT APPLICABLE* Exemption Employee Employee Employer assessed by an authorised officer to be in financial distress based on the guiding principles set out in the Schedule. Section 36 37 48 54(1) (b) and (c) (i) Expatriate employee; (ii) Employee in management. 55(2) 73 75 NOTE Employer assessed by an authorised officer to be in financial distress based on the guiding principles set out in the Schedule, or under circumstances warranting immediate termination of contract of employment. (i) Expatriate employee; (ii) Employee in management with a written contract providing for gratuity; (iii) Employee in the agricultural sector; (iv) Employee in the domestic sector. (i) Expatriate employee; (ii) Employee in management. The guiding principals for the application of the exemption pursuant to sections 48 and 55 (2) are as follows: (i) Review current quarterly tax returns and check extent of reduction in turnover in comparison with last return, and consider amended tax returns taking into consideration reduction in projected turnover; (ii) Assess documents showing suspension or reduction of business and impact on turnover; (iii) Assess cash flow projections and verify cash stress or financial constraints on employer; (iv) Review past audited financial statements to check profitability and extent of reserves from previous years; and (v) Review staff payroll and compare staff costs with projected income. LUSAKA 8th May, 2020 [MLSS.64/9/9] J. N. SIMUKOKO, Minister of Labour and Social Security