Zimbabwe, a landlocked country in southern Africa, is located between the Zambezi and Limpopo Rivers. Despite facing economic challenges and political instability in the past, Zimbabwe is working towards improving its economic position through various policies and initiatives. Today, Zimbabwe’s economy is mainly based on agriculture and mining manufacturing – but there is a growing focus on manufacturing and the service sector. The government is implementing reforms to improve the business climate and encourage foreign direct investment (FDI) in areas like infrastructure development, technology, renewable energy and tourism.
Why Zimbabwe?
- Strategic location and potential for growth: Zimbabwe’s central location in southern Africa makes it an ideal hub for companies looking to expand their business activities in the region.
- Emerging technology sector: The country’s emerging technology sector is mainly focused on IT support, software development, mobile applications and e-commerce. The country has a growing pool of skilled IT professionals, including software developers, programmers and system analysts.
- Innovation footprint: According to the Global Innovation Index, Zimbabwe ranks among the world’s top lower middle income economies with improvements being made in its workforce, infrastructure and business environment.
- Cost-effectiveness: Zimbabwe has a relatively low cost of living compared to many other African countries, which can translate to lower operating costs and salaries for remote workers.
- Unique opportunities: Zimbabwe’s infrastructure is a work in progress and many challenges still remain, which means there’s a need for solutions, investments and diversification. For example, agritech can help the largest sector, agriculture, increase productivity and better contribute to economic development. Similar opportunities exist in healthtech, fintech, edtech, e-commerce, renewable energy, logistics and cybersecurity.
Why is Zimbabwe focusing on attracting FDI in recent years?
Zimbabwe’s economy struggled in recent years due to factors such as political instability and hyperinflation. However, the country is taking steps to reduce poverty, improve healthcare, enhance education outputs and promote gender equality. Zimbabwe has made progress in recent years towards achieving these goals but there is still much work to be done.
The country’s 2030 Vision, according to the World Bank, may potentially elevate the country to an upper middle income economy but it will require significant investment. The government of Zimbabwe is now focusing on attracting multinational companies (MNCs) for expansion and hiring in recent years as a way to boost economic growth, increase foreign direct investment, promote knowledge transfer, diversify the economy and improve infrastructure.
How are employment laws and regulations formed in Zimbabwe?
Zimbabwe’s labor law framework is derived from a variety of sources, including:
Constitution: The Constitution of Zimbabwe is the supreme law of the land and states the fundamental principles and values that guide the formation of labor laws. For example, the Constitution guarantees workers’ rights to fair labor practices, fair compensation and safe working conditions.
Statutory laws: The government enacts laws related to employment and labor through the legislative process. The most significant laws in this area include the Labor Act, the Public Service Act, the Labor Relations Act and the National Social Security Act. These laws regulate employment contracts, working hours, minimum wages, termination of employment and other aspects of employment.
Collective Bargaining Agreements (CBAs): CBAs are legally binding agreements negotiated between employers and employees or their representative unions, which set out the terms and conditions of employment for a specific group of workers. These agreements can cover a wide range of employment issues, including wages, working hours, leave, health, safety and dispute resolution procedures.
Case law: Labor courts play an important role in shaping labor regulations. The courts interpret the Constitution and statutory laws, providing guidance on how they should be applied in specific situations. Court decisions can create new legal precedents that redirect the development of labor laws.
International labor standards: Zimbabwe has ratified a number of International Labour Organization (ILO) conventions, which set out minimum standards for worker rights and labor practices. These conventions influence the development of labor laws in Zimbabwe and are often used as a benchmark for evaluating the country’s labor standards.
Are written employment contracts required in Zimbabwe?
While employment contracts are not required to be written, it is highly recommended that employers draft contracts detailing the following information:
- Employer details (name and address)
- Duration of the contract
- Terms of probation
- Compensation details (including the manner of calculation and payment intervals)
- Benefits
- Leave allowances
- Bonuses
What are the typical working hours in Zimbabwe?
In Zimbabwe, every agreement provides for minimum hours of work. The typical recommendation is to provide for a minimum of eight hours per day, subject to the nature of the work, and 40 hours per week. Employees can only work up to a maximum of ten hours a day.
How does termination work?
According to statutory laws, a contract of employment can be terminated if the employer and employee mutually agree to it in writing.
Employers are permitted to terminate contracts on if an employee:
- Is guilty of theft or fraud
- Willfully destroys employer’s property
- Is absent for a period of five days or more working days without giving a reasonable excuse
- Lacks a skill that he or she explicitly or implicitly agreed to have in the hiring process
- Is substantially negligent in his or her duties
- Is drunk to the extent that it impedes on work responsibilities
Why is Employer of Record (EOR) hiring becoming a popular choice for MNCS in Zimbabwe?
While Zimbabwe is becoming more attractive for hiring and expansion, there are still challenges that MNCs may face when doing business in the country. For example, the process of setting up and operating a business in Zimbabwe can be bureaucratic and time-consuming, which can create additional costs and delays for MNCs.
On the other hand, EOR hiring is becoming a popular choice for MNCs in Zimbabwe because it offers cost savings, compliance, speed, flexibility and risk mitigation. EOR providers can help MNCs to quickly and easily establish a presence in Zimbabwe and start hiring workers. This can be particularly important for MNCs looking to quickly build a team or expand into the region. At the same time, an effective EOR provider will be well-versed in the complex local labor laws and regulations found in Zimbabwe.
By partnering with an EOR provider, MNCs can focus on their core business activities and leave the administrative burden of employment to a trusted partner.
What makes the GoGlobal experience different for clients and their workers?
At GoGlobal, we take a unique, people-first approach to HR. We understand that while technology is important, it can never replace the value of human connection. That’s why we prioritize human-to-human touch points throughout the entire hiring lifecycle. We complement this experience with innovative technology solutions to create a truly unique approach to HR.
With remote teams spread across the globe, we have embraced a global mindset while still ensuring a local presence. In Zimbabwe, we have a dedicated team of local experts who deeply understand the country’s unique business environment. From cultural customs to local challenges, our team is well-equipped to provide exceptional HR support to workers in their time zone and in their language of choice – whether that be Shona, Ndebele, English or other minority languages.
We know that a positive hiring experience is crucial for both our clients and the client-workers we directly employ on their behalf. By partnering with us in Zimbabwe, our clients can free up their team’s resources to focus on business-growth activities and tap into emerging market opportunities.
Our unique combination of human connection, technological innovation and local expertise ensures our clients receive the best possible HR and EOR services.
GoGlobal has a significant on-the-ground footprint in Africa, maintaining local offices across 18 countries spanning from North Africa to Sub-Saharan Africa. This extensive on-the-ground footprint empowers GoGlobal to offer exceptional assistance to clients in expanding their operations and building successful teams across Africa.
Find additional information on benefits and hiring in Zimbabwe, or contact us to talk with an international HR expert.