What is Unfair Dismissal
Unfair dismissal occurs when an employer terminates an employee's contract without acting reasonably or fairly. For a dismissal to be fair, the employer must give a valid reason that relates to the employee's conduct, capacity, or the operational requirements of the business, and must follow the correct procedure. A key test applied in Zambian law requires that: (1) the employer genuinely believes the employee is guilty of misconduct; (2) this belief is based on reasonable grounds; and (3) the employer has conducted a reasonable investigation. The fairness of a dismissal is determined by whether the employer acted reasonably based on the circumstances of each case.
Available Remedies
When a dismissal is found to be unfair or wrongful, an employee may be awarded financial compensation. The primary remedy is compensatory damages designed to place the employee in the position they would have occupied if the contract had not been wrongfully terminated, including salary that would have been earned during the notice period. The employer bears the burden of proving that the employee failed to mitigate their losses before the court awards damages. In cases where the employer's conduct was particularly wrongful and caused undue distress or mental suffering, courts may award additional compensation beyond the standard measure of damages. Additionally, an employer who fails to pay wages and accrued benefits due on dismissal is liable to an administrative penalty [Employment Code Act, S.51].