KEY POINTS
- Labour Court awards over US$271,000 to Nickson Busu.
- Court rejects Fidelity Life’s six-month damage offer.
- Focus keyphrase ‘Labour Court orders Fidelity Life’ reappears.
A decade-long labour dispute between Zimbabwean insurer Fidelity Life Assurance and its former employee has ended with a court-ordered payout of over US$271,000.
The Labour Court ruled that the company unlawfully terminated Nickson Busu’s employment in 2013, entitling him to nearly nine years of back pay, benefits, and compensation for wrongful dismissal.
Labour Court orders Fidelity Life to pay
Justice Makamure’s ruling handed down on July 31 found Fidelity Life Assurance and its sister firm, Fidelity Funeral Assurance, liable for unpaid wages and allowances accumulated over 107 months. The court also awarded 12 months’ salary as damages instead of reinstatement, pushing the total to US$271,727.81.
Busu’s dismissal had previously been declared unlawful by the Supreme Court under case SC597/24. Represented by labour lawyer Caleb Mucheche, Busu had initially claimed over US$294,000 in entitlements. Fidelity Life countered with a six-month damage offer, which the court dismissed as inadequate and unsupported.
The court acknowledged that Busu, now in his sixties, faced declining employment prospects due to age and health. This played a critical role in determining the final compensation package.
Precedent and age influence ruling again
Citing precedent from Ambali v Bata Shoe Co Ltd (1999), the judge underscored that employers cannot use the obligation to seek alternative employment as a loophole to avoid rightful compensation. “The applicant is said to be in his sixties. This appears not to have been disputed,” noted Justice Makamure.
The payout included:
US$233,348.81 in salary for 107 months
US$24,075.00 for fuel allowances
US$14,304.00 as damages for non-reinstatement
According to New Zimbabwe, Fidelity Life has been ordered to pay the total sum or its Zimbabwean dollar equivalent at the official exchange rate on the payment date.
