K120,000 axe falls on erring hotel
By Ludia Ngwadzai
THE Ministry of Labour and Social Security has ordered New Century Diamond Hotel to pay the K120,000 administrative penalty after an inspection uncovered multiple breaches of labour laws.
In a statement, the ministry’s principal public relations officer Mwaka Ndawa said the hotel was directed to correct all the violations and ensure workers’ rights were protected.
“The Ministry of Labour and Social Security has imposed an administrative penalty of K120,000 on New Century Diamond Hotel due to multiple contraventions of labour laws,” Ndawa said.
She said the hotel had failed to provide workers with valid written contracts, maintain records of oral contracts, keep a payroll and issue payslips, among other violations.
She said inspectors found that some employees were being paid below the prescribed minimum wages under Statutory Instrument No. 48 of 2023, while workers who fell sick had their wages cut despite presenting certified medical notes.
Ndawa said the ministry established that although the hotel employed more than 25 workers, it had not registered as an employer with the Office of the Labour Commissioner as required by Section 63 of the Industrial and Labour Relations Act.
“The hotel was also operating without full-time a qualified human resource officer, contrary to Section 11 of the Zambia Institute of Human Resource Management Act,” she said.
Ndawa said the remedial measures included issuing workers with written contracts indicating their positions and correct salary scales, placing them on payroll and providing payslips.
She said the hotel was directed to make workplace policies available to employees, pay all salary underpayments, stop unauthorised deductions, register with the Office of the Labour Commissioner and engage a qualified human resource officer.
“Salary arrears and separation packages owed to affected employees had already been computed by the ministry and paid by the hotel before new one-year employment contracts were signed. The Ministry of Labour and Social Security would like to remind employers that every worker is entitled to clear terms of employment, lawful remuneration and appropriate workplace protections,” Ndawa said.
She urged employers to comply fully with labour laws to safeguard workers’ rights and promote decent work.
