Zimbabwe Labour Market Intelligence
If the business is sold, your job and your terms go with it
Contracts. Section 16
Prepared 20 October 2026
Industrial Psychology Consultants (Pvt) Ltd
Maximising Returns on Human Capital
If the business is sold, your job and your terms go with it
Contracts. Section 16
In plain words
When an undertaking is sold or transferred in any way, the employment of the people working in it is deemed to transfer to the new owner on terms no less favourable than before, and their continuity of service is treated as unbroken.
Section 16(1) says exactly that. It means a new owner cannot treat the staff as new starters, cannot reset their years of service, and cannot offer worse terms as a condition of keeping them. Continuity matters well beyond sentiment: notice periods, leave accrual and retrenchment packages are all calculated on length of service. The section does not prevent a lawful termination or a lawful retrenchment carried out on its own merits.
Applies to: Employees of an undertaking that is sold, merged or otherwise transferred
Chishona
Kana bhizinesi ratengeswa kana kuchinjwa, basa revashandi rinoenda kumuridzi mutsva pamitemo isiri pasi peyaimbovepo, uye makore avo ekushanda haaputswi.
IsiNdebele
Nxa ibhizimusi lithengisiwe loba lidluliselwe, umsebenzi wezisebenzi udlulela kumnini omutsha ngemibandela engaphansi kweyakuqala, njalo iminyaka yazo yokusebenza kayiqanyulwa.
Where this comes from and when it applies
| Field | Value |
|---|---|
| Instrument | Labour Act [Chapter 28:01] |
| Kind | Principal Act |
| Chapter | 28:01 |
| Provision | Section 16 |
| In force from | 1985-12-31 |
| In force to | Still in force |
| Recorded on this platform | 2026-08-23 |
| Supersedes | — |
| Official source | https://www.veritaszim.net/sites/veritas_d/files/Labour%20Act%20Cap%2028.01.pdf |
| Review status | Outstanding |
As at 20 Oct 2026, 08:19. Method version 2026.07.1.