SUPREME COURT RULES DISMISSED WORKERS NOT ENTITLED TO GRATUITY

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Posted by admin on April 20, 2026 at 1:37 AM

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The Supreme Court of Zambia has finally settled a long-standing legal ambiguity on whether a dismissed worker on a permanent and pensionable contract is entitled to gratuity.

Delivering judgment in the case First Quantum Mining and Operations Limited v Zubao Harry Zuma – Appeal No. 22/2025, Chief Justice Mumba Malila, SC, led a panel of three judges in clarifying the law.

The case involved a worker at First Quantum Minerals (FQM) who was summarily dismissed for gross misconduct after a disciplinary hearing.

He sued the mine, claiming benefits including gratuity. The Court of Appeal had earlier ruled that he was entitled to severance pay plus gratuity under Section 54 of the Employment Code Act.

Unhappy with the ruling, FQM appealed to the Supreme Court, arguing that awarding gratuity to a dismissed employee would amount to rewarding indiscipline.

In its ruling, the Supreme Court held “A permanent and pensionable employee who is dismissed from employment for gross misconduct is not entitled to severance pay.”

Such an employee’s entitlement is limited to “wages and other benefits” as stipulated in Section 51(1).

Granting gratuity in such circumstances would offend principles of justice and create an absurdity never intended by Parliament.

The Court reversed the Court of Appeal’s earlier interpretation, describing it as “fundamentally flawed”, and ordered each party to bear its own costs due to the importance of the case in clarifying employment law.