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What to do when a member of a National Employment Council (NEC) fails to pay NEC Levies in Zimbabwe?

National Employment Councils (NECs) are important. NECs cannot function efficiently and effectively if employers and employers in various industries and undertakings fail, refuse or neglect to pay NEC Levies.

It is common cause that NECs are funded through statutory levies i.e., NEC Levies which are deducted from parties to the NEC on a monthly basis. The collection of NEC Levies in Zimbabwe is a very important function of the NEC.

A NEC in Zimbabwe cannot avoid engaging the services of reputable debt collection law firms in Zimbabwe to collect NEC Levies or arrear NEC Levies. Neither can a duly registered NEC in Zimbabwe refuse to recover NEC Levies from its members. It is an inherent feature of all NECs in Zimbabwe to raise operational funds from members by the levying of Council Dues or NEC Levies. see Body Corporate of Fish Eagle v Group Twelve Investments (Pty) Ltd 2003 (5) SA 414 (W).

Where a party to the NEC fails to pay NEC Levies, the NEC is legally empowered to take action to recover such amounts, including interest and costs. Thus, in the event of a party to a NEC failing, refusing or neglecting to pay NEC Levies in Zimbabwe, the NEC has a legal obligation to hand over the matter to its nominated or appointed law firm for the recovery of the NEC Levies.

The High Court in National Employment Council for the Communications and Allied Services v Econet Wireless (Pvt) Ltd HH 384-26 at para 17 – 18 held that:

“A sectoral giant is not licensed to behave as through labour legislation binds only the smaller players and reaches the largest one by invitation. The law does not recognise a hierarchy of obedience in which the biggest actor may wait upon bespoke comfort before entering the common regime. The record reveals a posture of exceptionalism. The law recognizes none.

The CBA and NEC constitution reinforce the applicant’s clear right. The papers place before the court the dues clause in section 33(3) of the CBA, to the effect that each employee pays 1% basic wage or salary and the employer contributes a like 1% for the same employee. The NEC constitution further provides that the council’s operations are financed by levies on employers and employees, that employers pay a levy equal to the employee levy, and that the council may sue for and recover outstanding levies and other dues.”