Oliver Kazunga, Senior Business Reporter
OLD Mutual Zimbabwe is set to roll out a second voluntary retrenchment exercise this year as part of the company’s cost-containment initiative in response to the prevailing macro-economic challenges.
In a notice, Old Mutual Zimbabwe chief executive officer Mr Jonas Mushosho said the impending second round of the retrenchment exercise was necessitated by the first similar exercise in April which was below expectation. As a result, he said management was tabling an offer for a voluntary staff retrenchment scheme on an improved package.
“The economic challenges facing our country and the business have not relented. Given the high inflation rate and the need to control total operating costs, it is important for business to reduce costs.
“Management will endeavour to conclude this round of retrenchments timeously in order to preserve the value of the package,” said Mr Mushosho.
Applications to be considered under the voluntary retrenchment scheme should be submitted by the 21st of October, 2019. Said Mr Mushosho: “The following package shall apply to successful applicants for the scheme: Equivalent of 12 months Tax Gap Performance (TGP) plus Economic Hardship Allowance (EHA) lumpsum payment as severance pay as at the date of retrenchment; three months TGP plus EHA as notice pay.”
The scheme will also have a gratuity of 75 percent of monthly TGP and EHA for each year served up to a maximum of 24 years. Employer medical aid contribution will continue for a year from the date of retrenchment and on the pension side, payouts will be dealt with in accordance with Pension Fund rules.
Part of the retrenchment package also involves cash in lieu of leave based on TGP plus EHA as at the date of retrenchment and a post-retirement medical aid subsidy for retrenchees 55 years and above.
All employees wishing to be considered for the retrenchment scheme are required to submit their applications to their respective human capital business partner. — @okazunga