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Debt collection of National Employment Council (NEC) Levies in Zimbabwe

For the purpose of meeting the expenses of a National Employment Council all employers and employees engaged in the industry, occupation, trade or trade are statutory required to pay levies also known as “dues” to the respective National Employment Council which they fall under. It is therefore a statutory obligation for employers and employees to pay NEC Levies in Zimbabwe. see National Employment Council for the Construction Industry v Zimbabwe Nantong International (Pvt) Ltd 2018 (1) ZLR 16 (S).

It is therefore important for a National Employment Council (NEC) to adopt a proper and systematic process for the collection of NEC Levies, Trade Union and Employers Association dues to it.

NECs in Zimbabwe should refrain from engaging so-called “debt collectors” to collect NEC dues. In Zimbabwe, debt collection is a preserve for registered legal practitioners and should be carried out by legal practitioners in possession of a valid practising certificate. see The Law Society of Zimbabwe & Another v Wellcash Debt Collectors (Pvt) Ltd 2018 (2) ZLR 821 (H).

The High Court in National Employment Council for the Catering Industry v Harare Club HH 460-18 at page 8 held that:

“In conclusion, it is in my view that the statutory instruments relied upon by the plaintiff for defendant to effect payment of NEC levy, pension contributions and trade union dues have not been abrogated and remain valid. In particular membership of the pension fund for the catering industry is mandatory for defendant’s employees requiring that defendant makes the contributions thereto as required by the law. The plaintiff’s claim is therefore competent as it alleges that defendant failed to comply with mandatory provisions. Furthermore, the defendant’s constitutional right to freedom of assembly and association has not been violated as the law does not compel it to belong to an employer’s organisation. Therefore, the quantum of the claim having been agreed by the parties, the defendant must be compelled to pay the same to the plaintiff.”

It is important to note that the NEC Levies, Trade Union and Employers Association dues which employers and employees are statutory required to pay NEC for its operations are stipulated by the NEC from time to time. Where the employee’s wages are wholly or partially in foreign currency, the deductions and remittance of the NEC Levies should also be wholly or partially paid in the foreign currency as the case may be.