Tue, 12 Sep 2017 10:04:07 +0000
By Chikumbi Katebe
FORMER Finance Bank Zambia employees have rejected a scheme by the “new” employers to force them into a new employment contract against their will.
This is after African Banking Corporation Zambia Limited (BancABC) reportedly acquired 100 percent shares of Finance Bank Zambia under the Banking and Financial Services Act.
The employees claimed that they were still contracted under the terms and conditions of their previous employer, Finance Bank as they have not been paid their redundancy packages.
Some employees who besieged to the Daily Nation with letters of offer of employment which suggested they still held work contracts under the defunct Finance Bank, said they should not be forced into signing new employment contracts with the new bank owners when they have not seen their packages from Finance Bank.
The employees presented various correspondence from the company which included announcements of the company take over by Africa Banking Corporation Zambia Limited (BancABC) as their new employers forthwith.
They explained that they have not been accorded adequate time to consult on the legal implications of signing the letters, or to consult the Ministry of Labour, a scheme they charged was meant to intimidate them and that some of their colleagues have signed the new contracts for fear of losing employment.
They charged that according to information obtained from the new owners, BancABC reportedly acquired 100 percent shares of Finance Bank Zambia under Section 29 of the Banking and Financial Services Act, which provided for redundancy or separation for former employees during the transition.
“Your contract of employment was taken over and continued and is in effect. The new conditions of service will be applicable.
“There are only two options for you to communicate your position, acceptance or decline. There is no option of redundancy where a new role has been offered to you,” the communique read.
The employees who received offer letters explained that they were not aware of the new conditions of service under BancABC to which they were given 48 hours to respond in the affirmative with the alternative being resignation from a company that did not employ them.
They claimed they were still employees of Finance Bank which has since been bought off, and so demanded their redundancy packages before being given letters of offer, more so without conditions attached.
They have also accused Banc ABC of refusing to adhere to labour conditions of service in relation to a take over as that of Finance Bank, which required that the contractual right to personal service was a personal right and not of the employer.
The Ministry of Labour had earlier advised the bank against the misapprehension and misdirection of the law in the takeover of Finance Bank Zambia by the new owners, BancABC.
According to a letter dated 17th August, 2017, assistant labour commissioner-legal, Mrs M C Ulaya indicated that there was gross misdirection of the law when the bank suggested that there was no transfer of contract under Section 35 of the Employment Act as there was no change of employer.
“The Ministry guided in that letter that contracts of employment do not automatically transfer to a new entity (new employer) without the consent of the affected employee.
“Section 35 of the Employment Act prescribed that contracts of employment shall not be transferred from one employer to another unless the employee concerned consents to the transfer and the particulars thereof are endorsed on the contract by a proper officer,” she said.
The Ministry official even advised against antagonistic antics aimed at avoiding to pay obligatory fees accrued by the employees, adding that “management is enjoined to ensure that an atmosphere devoid of intimidation, coercion, misrepresentation or undie influence exists through-out the transition process.”
