The new insolvency act [chapter 6:07] and the protection of the right of employees : Gloom or glory for the Zimbabwean employee?

Abstract

The new Insolvency Act (Chapter 6:07) guarantees limited rights of workers in their capacity as creditors and as employees. In doing so, there is a convergence of insolvency law and labour law. These are legal disciplines with contradictory philosophies. The interests of creditors and those of employees’ conflict. This study ascertains the rights of employees on insolvency of the employer in Zimbabwe. It attempts to balance the competing interests of employees and creditors. The review is informed by international best practices. The article establishes that Zimbabwe follows the Model Two: Bankruptcy Preference Approach. It brings to the fore fundamental weaknesses inherent with this approach in the Zimbabwean context. The article argues that the protection of employees’ rights on insolvency can be enhanced if Zimbabwe follows the Pro-Employee Approach and the Bankruptcy PriorityGuarantee Fund Approach. It concludes by advocating for the alignment of the Insolvency Act with international best practices, the Constitution and labour legislation