In Zimbabwe, the National Employment Council (NEC) is the backbone of industrial relations. It is a bipartite body—consisting of representatives from both employer associations and trade unions—that regulates wages and working conditions within a specific industry.
Is NEC Registration Mandatory?
Yes. Registration with the relevant NEC is a statutory requirement for any business operating within a sector that has a registered council.
Under the Labour Act [Chapter 28:01], once an industry establishes an NEC and publishes a Collective Bargaining Agreement (CBA), all employers in that sector are legally bound by its terms. Failing to register is not just an administrative oversight; it is a criminal offense that can lead to:
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Garnishee Orders: The NEC can legally seize funds from your bank account to recover unpaid levies.
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Backpay Penalties: If you haven’t been paying the industry-standard minimum wage, you may be forced to pay years of back-dated salary adjustments in a single lump sum.
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Tender Disqualification: You cannot obtain a “Certificate of Compliance,” which is mandatory for most government and private sector tenders.
How Many NECs Are There?
There is no single “Master NEC.” Instead, Zimbabwe has over 40 different National Employment Councils, each governing a specific sector of the economy. These ensure that the rules for a mine worker are different and appropriate compared to the rules for a hotel chef or a bank teller.
Common Examples of NECs:
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NEC for the Mining Industry
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NEC for the Agriculture Industry
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NEC for the Commercial Sector (One of the largest, covering retail and general business)
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NEC for the Construction Industry
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NEC for Tourism and Hospitality
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NEC for the Engineering and Iron & Steel Industry
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NEC for the Transport Operating Industry
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NEC for the Security Industry
Requirements for NEC Registration
While each council has its own specific forms, the standard requirements across almost all NECs in Zimbabwe include:
1. Company Documentation
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Certificate of Incorporation: Proof that the business is legally registered.
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CR6 (formerly CR14): List of company directors.
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CR5 (formerly CR2): Registered office address.
2. Employee Records
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Employee Schedule: A list of all current employees, their National ID numbers, dates of engagement, and job titles/grades.
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Payroll Summary: Disclosure of current basic salaries (to determine the correct levy amounts).
3. Statutory Proofs
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NSSA Registration: Proof that you are registered for social security.
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ZIMRA TIN : Your tax identity number.
4. Fees
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Registration Fee: A one-off fee that typically ranges from US$50 to US$200 depending on the size of the company and the specific industry.
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Monthly Levies: Once registered, you must pay a monthly levy (usually between 2% and 4% of the total basic wage bill), typically split 50/50 between the employer and the employee.
Registration Process Flow
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Identify your Sector: Determine which NEC governs your specific business activities.
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Submit Forms: Complete the “Application for Registration of Employer” form.
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Inspection: Some NECs (like Tourism or Catering) may send a “Designated Agent” to inspect your premises and verify your employee count.
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Payment: Pay the initial registration fee.
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Certification: Once processed, you receive a registration number and can then apply for a Certificate of Compliance.
