IT is illegal to fire workers without paying them their terminal benefit as CETZAM did because that was not in line with the provisions of the law to lay off over 115 workers, ZUFIAW general secretary Chingati Msiska.
He said the union was aware of what was happening at the Financial Service institution but warned that the route they had taken was illegal because they did not follow the laid down provisions of the law before laying off workers.
He said the route CETZAM had taken to lay off the workers was illegal and ZUFIAW had challenged it through the Ministry of Labour.
“We have challenged this decision by CETZAM through the Ministry of Labour because it is very wrong and illegal. It has no backing from the union. This administrator Irene Mutalima has been going across the country where they have offices and branches to dish out letters and notices without informing the union and the Ministry of Labour,” Mr. Msiska said.
And Government has warned CETZAM to follow the laid down banking and financial services procedures before taking the illegal avenue they were taking because it would be costly on (company) their part.
Government spokesperson Chishimba Kambwili said it was not correct for companies to be laying off workers at will in the manner they felt fit without consulting relevant authorities.
Mr. Kambwili warned that Government would not take kindly to such people, adding that government was not aware about the maneuvers at CETZAM to dismiss over 115 workers.
Over 115 workers from CETZAM Financial Services limited have lost their jobs because the company’s financial status has deteriorated.
In a letter of notice of termination of employment to over 115 workers, Ms. Mutalima informed all the affected workers that the Financial Service provider had been placed under care and management as an interim measure to assess the possibility of winding up the company. She stated in her letter that CETZAM was unable to keep the workforce, hence the decision to go on separation with the workers.