- Introduction
On 10 April 2026, the National Employment Council for the Mining Industry in Zimbabwe announced the promulgation of Statutory Instrument 71 of 2026, being the latest Collective Bargaining Agreement (CBA) for the mining industry. We took the opportunity to review the CBA and identified several noteworthy provisions governing fixed-term contract employees within the sector.
This article is not intended to be exhaustive, and readers are encouraged to carefully study the CBA and align their HR systems accordingly. The instrument came into effect on 10 April 2026 and is set to significantly shape labour relations within the industry going forward.
Following its promulgation, I have received numerous inquiries from various stakeholders. This article addresses some of the key questions raised, particularly in relation to the regulation of fixed-term contracts.
- Does the CBA have retrospective effect?
One of the key issues that has arisen concerns whether the law operates retrospectively.
For purposes of clarity, legislation is said to have retrospective effect where it applies to events, conduct, or legal rights that arose prior to its commencement. In contrast, the general presumption in law is that legislation operates prospectively, regulating rights and obligations from the date of its coming into force going forward.
Accordingly, the CBA is prospective in nature and binds parties only from 10 April 2026 onwards. Employers are therefore required to ensure that all policies, practices, and employment arrangements implemented from that date comply fully with its provisions.
- Fixed Term Contracts Definition
Since 2015, several National Employment Councils (NECs) in Zimbabwe have progressively regulated and, in some instances, limited the duration and renewal of fixed-term contracts.[3] The mining sector, however, remained one of the few industries without a formal cap, resulting in a long-standing practice where some employees were engaged on successive one-month fixed-term contracts. This practice has been a persistent concern for trade unions over the years[4]
The newly introduced CBA now provides express protection for fixed-term employees, beginning with a revised definition of a “contract worker”, which states as follow:
“contract worker” means an employee engaged on a fixed term contract for a period of twelve months and above provided that a contract for a period of less than twelve months shall be deemed to be a contract without limit of time if that contract is neither for casual work, seasonal work or engagement in a specific task or in a specific project.”
A key question arising from this definition is whether employees currently engaged on short-term fixed contracts are automatically deemed permanent employees. In this regard, the principle of prospective application is decisive. The CBA operates prospectively, meaning that existing contracts concluded prior to its commencement remain valid for their agreed duration. However, upon expiry of such contracts, employers will be required to align all renewals or new engagements with the requirement that fixed-term contracts must be for a minimum period of twelve months, unless they fall within the recognised exceptions.
Had the CBA been intended to operate retrospectively, it would have had the effect of converting all existing fixed-term employees into permanent employees, a consequence that would have had far-reaching implications for employers across the industry. That is not the legal position.
Of further significance is the structure of the definition of “contract worker”, which appears to distinguish between two categories of fixed-term engagement: contracts defined purely by duration, and those linked to specific tasks or defined projects. Notably, employees engaged on specific tasks or project-based arrangements appear to fall outside the standard remuneration framework of the CBA, with their terms and conditions, including remuneration, being subject to negotiation between the parties.
Whether this development may expose employees engaged on specific tasks to comparatively less favourable conditions than their counterparts on fixed-duration contracts remains an issue that will have to be tested in practice and through the evolving interpretation of the CBA.
- The capping of fixed term contracts
In addition to prescribing a minimum duration of one year for fixed-term contracts, the CBA further limits renewals to a maximum of two extensions. In the section titled “Contracts of Employment”, the CBA provides as follows:
“(5) An employer is entitled to renew a contract of employment for two times. Thereafter an employee shall be deemed to be an employee on a contract without limit of time on the day that his period of engagement with a particular employer exceeds two renewals.”
The CBA now generally requires that employment contracts be concluded for a minimum duration of twelve months. Where a contract is for a period of less than twelve months, it is deemed to be a contract of indefinite duration, unless it relates to casual work, seasonal employment, or engagement on a specific task or project. This provision is clearly intended to curb the practice of circumventing long-term employment obligations through the use of repeated short-term contracts.
In addition, the CBA restricts the renewal of fixed-term contracts to a maximum of two occasions. Upon the third renewal, the employment relationship is deemed to have crystallised into permanent employment. These provisions collectively strengthen job security within the sector and offer enhanced protection against the prolonged use of successive short-term engagements.
- Remuneration of Fixed Term Contract Employees
One aspect of the CBA that has particularly engaged my attention is the remuneration framework applicable to contract workers. The relevant provisions under section 8A(3) of the CBA provide as follows:
“(3) Remuneration of a contract worker shall be as follows:
(a) in the case of a worker engaged on a fixed time contract he shall be paid at least the minimum rate laid down in the NEC Agreement for his job, together with all appropriate allowances, in accordance with the terms of this agreement.
(b) in the case of a worker engaged on a project or task the remuneration shall be negotiated and agreed upon by the parties.”
The above provisions may be interpreted to mean that where a fixed-term contract is defined by duration, the applicable CBA remuneration framework applies and remuneration is determined in accordance with the NEC-prescribed rates.
Conversely, where the fixed-term engagement is based on the completion of a specific task or project, remuneration is not automatically regulated by the NEC framework but is instead subject to negotiation and mutual agreement between the parties.
This represents a notable departure from the previous position, under which both task-based and project-based employees were generally remunerated in accordance with NEC-determined salary structures.
- Contract Workers and Vacation Leave
The provisions of the CBA that governs leave provides as follows:
“(2) A contract worker shall not be entitled to take leave, but shall be paid the cash equivalent of any leave accrued in terms of this agreement in lieu thereof at the terminating date; Provided that where a contract worker is employed for a period in excess of one year annual leave may be taken in accordance with the terms of this agreement.”[5]
The provision in question appears to regulate leave for contract workers on the basis that, during the currency of the contract, such employees do not ordinarily take annual leave. Instead, any leave accrued is effectively commuted into a monetary payment upon termination of the contract. However, where the contract extends beyond one year, the employee becomes entitled to actually utilise accrued annual leave during the subsistence of the employment relationship.
On a strict reading, this framework creates a practical distinction between fixed-term contract workers and employees on indefinite contracts. In effect, contract workers may be required to take unpaid leave when attending to personal matters during working days, whereas permanent employees are able to draw on accrued annual leave entitlements for the same purpose.
This differential treatment arguably places fixed-term employees at a relative disadvantage in relation to work-life balance and flexibility. In my respectful view, this constitutes an instance of over-regulation of fixed-term employment arrangements, with potential implications for equity in the treatment of employees performing similar work under different contractual forms.
- Termination of Fixed Term Contract Employees
The termination of fixed-term contracts is now subject to more structured and stringent conditions. In terms of section 25(1)(c) of the CBA, it is accepted that a fixed-term contract may lawfully terminate upon the effluxion of time, without the requirement of notice.
However, the CBA further introduces an important qualification to this general principle. Where the majority of an employer’s workforce is engaged on fixed-term contracts, the expiry of such contracts is deemed to constitute retrenchment.[6] In practical terms, this means that upon the lapse of fixed-term contracts in such circumstances, the affected employees are entitled to a minimum retrenchment package, notwithstanding that the contracts have simply reached their agreed termination date.
This represents a significant and far-reaching development in the regulation of fixed-term employment, with potentially material implications for employers who rely heavily on such contracts in structuring their workforce.
- Conclusion
Employers are strongly urged to exercise due diligence and to carefully consider and implement all provisions of the CBA in full. The foregoing analysis demonstrates that the regulatory framework governing fixed-term contracts has undergone a significant and material transformation, with far-reaching implications for both contract structuring and labour relations within the industry.
It is evident that employees engaged on fixed-term contracts now enjoy substantially enhanced protections, both in relation to the duration and renewal of contracts, as well as in respect of remuneration, leave entitlements, and termination consequences. In several respects, the CBA marks a decisive shift away from traditional flexibility towards a more regulated and employee-protective regime.
This article has sought to provide a general overview of selected key issues arising from the regulation of fixed-term contracts under the CBA. It should not be construed as exhaustive legal advice, and stakeholders are encouraged to undertake a detailed review of the instrument to ensure full compliance and appropriate alignment of their human capital policies and practices.
[1] This article is provided for general informational and educational purposes only and does not constitute legal or professional advice. While every effort has been made to ensure accuracy, the author makes no representations or warranties regarding the completeness or reliability of the information. Readers are advised to seek independent professional advice before acting on any matter discussed herein. The author shall not be held liable for any loss, damage, or consequences arising directly or indirectly from the use of, or reliance on, this information.
[2] Taurai Mrewa is a Zimbabwean labour lawyer, human resources professional, author, and trainer with over 15 years of experience in employment law, labour relations, and human capital management, including within the mining sector. He holds two Master of Laws degrees. He writes in his personal capacity.
[3] The capping of fixed term contracts what in line with section 12(3a) of the Act.
[4] Mining Zimbabwe, https://miningzimbabwe.com/mine-workers-zdamwu-slam-labour-act-violations/ (Accessed: 13 April 2026).
[5] Section 8A(2) of the Collective Bargaining Agreement.
[6] “(iii) if the majority of employees engaged by the same employer are on fixed term contracts, and at any time when an employee’s employment is terminated on the expiry of his or her fixed term contract, then the provisions of sections 12C and 12D of the Act shall apply to such termination as if it was retrenchment;”
