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Bonuses or incentive production schemes in Zimbabwe

It is not mandatory for employers in Zimbabwe to pay their employees bonuses or to have incentive production schemes. A bonus is generally termed a benefit. It is gratuitous in nature and may be awarded to an employee or a group of employees as a reward for good performance. The right to payment of a bonus in Zimbabwe is a right founded ex contractu, ex lege or by way of an existing company policy, without which the issue of payment of bonuses is an interest dispute. see UIS Analytical Services (Pty) Ltd v Independent Democratic Union of South Africa & Others [2025] 2 BLLR 207 (LC).

A bonus is generally paid by an employer to an employee in Zimbabwe in accordance to the employer’s ability and discretion. see Jariremombe & Others v NSSA 2018 (2) ZLR 99 (H). In Zimbabwe, employers have the discretion to set up bonus schemes and other incentive production schemes. The Supreme Court in T.M. Supermarkets (Pvt) Ltd v Nkomo & Others SC 26-18 at page 6 held that:

“A bonus is what can generally be termed a benefit. The implication that can be drawn is that the grant of a bonus per se is not illegal and an employer cannot generally be held to have committed an unfair labour practice by setting up a bonus scheme. The rationale to this principle is that every employee has the right to a performance-based incentive and if they work well, they will be paid well without any reference being made to their class, race, tribe or any other factor on the basis upon which discrimination can competently be committed. Thus, the grant of a performance-based bonus is therefore not prescribed by law.”