Pay Them Over Resignations – Court Rules

Maxwell Shumba 

The High Court has delivered a strong message to employers across Zambia: resignation does not always mean an employee left willingly. In a landmark judgment involving the Zambia Medicines and Medical Supplies Agency (ZAMMSA), the court ruled that seven former employees who resigned amid prolonged investigations were, in fact, constructively dismissed and must be compensated accordingly.

The case arose from a major scandal that rocked ZAMMSA between 2014 and 2019, during which medicines and HIV testing kits worth over USD 1 million were stolen. The theft angered international donors, including the UN Global Fund, who demanded accountability and transparency from the Zambian government. The situation escalated to the point where foreign forensic investigators from Switzerland and South Africa were brought in to assist local authorities in identifying those responsible.

Amid intense pressure and public scrutiny, seven ZAMMSA employees on permanent and pensionable contracts found themselves caught in the middle of the unfolding crisis. During a company meeting, they were singled out and arrested by plain-clothed police officers in full view of colleagues. Their mobile phones were confiscated, and they were instructed not to leave Lusaka. Shortly afterward, they were suspended from work and placed on half pay, even though no proper disciplinary hearings were conducted.

What followed was a long and painful process. Investigations dragged on for nearly three years and involved multiple institutions, including the Zambia Police, the Drug Enforcement Commission (DEC), a government task force, and international investigators. Despite the seriousness of the allegations, no conclusive findings were made against the seven employees. Throughout this period, they repeatedly protested what they described as harassment, unfair treatment, and violations of their employment contracts. Their concerns, however, were largely ignored.

As months turned into years, the working environment became unbearable. Feeling unwanted, humiliated, and emotionally drained, the employees began resigning one by one. ZAMMSA swiftly accepted their resignations and paid their terminal benefits, even though some of their confiscated phones remained in police custody for more than a year after they had left employment.

Believing they had been forced out rather than choosing to leave freely, the former employees took the matter to court. They argued that their resignations were not voluntary but were triggered by ZAMMSA’s conduct, including illegal suspension, prolonged investigations without resolution, and a hostile work environment. In legal terms, they claimed they had been constructively dismissed.

After hearing the matter, the High Court agreed with them. The judge found that ZAMMSA had breached the employment contracts by suspending the employees without giving them an opportunity to be heard. The court further noted that the suspensions, initially justified as necessary for investigations, became unfair due to their excessive length and lack of resolution.

In her ruling, the judge stated that the employees had proved, on a balance of probabilities, that they were constructively dismissed. She emphasized that the prolonged suspension and unresolved investigations created a toxic working environment that made continued employment impossible. As a result, the resignations could not be treated as voluntary departures.

The court ordered ZAMMSA to pay each of the former employees compensation equivalent to 24 months’ salary as damages for loss of employment. This amount will also attract interest. Importantly, the judge clarified that the same compensation would cover damages for distress, inconvenience, and mental anguish suffered during the ordeal, noting that the emotional impact of the employer’s actions could not be ignored.

The case, cited as Mumba Jordan & Others v Zambia Medicines & Medical Supplies Agency (ZAMMSA) – Comp/IRCLK/120/2021, serves as a critical reminder to employers about the legal consequences of mishandling disciplinary processes. It reinforces the principle that employees must be treated fairly, heard before adverse actions are taken, and protected from indefinite suspensions that effectively punish them without due process.

Beyond ZAMMSA, the judgment carries broader implications for labor relations in Zambia. It underscores that constructive dismissal is not merely about resignation but about the circumstances that lead to it. Where an employer’s conduct makes continued employment intolerable, the law will step in to protect workers’ rights.

This ruling stands as both a warning and a lesson: accountability in the workplace is not optional, and resignation does not automatically absolve an employer of responsibility.

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