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LABOUR LAW
Understanding Annual Bonuses in Zimbabwe
The Labour Act [Chapter 28:01] does not define the term bonus. Notwithstanding the absence of a definition in the principal legislation on labour and employment in Zimbabwe, a bonus has been defined as a payment of a gift added to what is usual or expected in addition to an employee’s wages or salary. see Quantum Foods (Pty) Ltd v Commissioner H Jacobs N.O. & Others [2024] 1 BLLR 32 (LAC) para 24. Bonuses are gratuitous in nature.
In Zimbabwe the payment of annual bonuses is not mandatory. It is paid based on the company’s ability and discretion. see Jariremombe & Others v NSSA 2018 (2) ZLR 99 (H). An annual bonus may become mandatory in Zimbabwe where an employment agreement, company policy or Collective Bargaining Agreement (CBA) specifies so.
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