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The Lusaka City Council (LCC) has been dragged to court by its former employees over allegations of non-remittance of statutory obligations to NAPSA and NHIMA.
The 44 aggrieved ex-workers claim that LCC had failed to provide proof of the remittance of their contributions to National Pension Scheme Authority ( NAPSA) and National Health insurance Management ( NHIMA).
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LCC is also accused of not remitting the plainiff’s life assurance contributions to Zambia State Insurance Company (ZSIC).
Warren M’hango and 43 others, in a statement of claim filed in the Lusaka High Court, stated that they were employed by the Town Council through the Intercity Bus Terminus Management board under fxed contracts of 2 years and some 3 years duration from 2019 to 2022.
They were employed in different capacities as Cashiers, Security officers, Cleaners and general workers and on salaries ranging from K 2, 000.00 to K5, 500.00, 30 leave days per annum, gratuity at the conclusion of the contract period of two years at the rate of 20 percent.
M’hango said that their contracts expired in February,2022, but some workers continued to work and draw salaries.
He said on August 30,2022,they were served with letters of non renewal of contracts.
“The aforesaid letters of non-renewal sent to the plaintiffs did not indicate and/or stipulate that their contracts of employment would be terminated in light of the fact that they had continued working and drawing salaries during the months they worked without contracts,”
“The defendants when partying with the plaintiff did not follow the conditions of Service for the employees under the Lusaka Inter-City Bus Terminus Management Board which under Clause 3.1 provides inter alia that employees who are under contract, can only have their contracts terminated on the abolition of their office, when the terminus is re-organized for better efficiency, in cases where there is medical evidence to show incapacity of the employee to continue working, on discıplınary grounds, and/or any breach of the contract terms as stipulated in the service,” they contended.
M’hango stated that according to LCC, the non renewal of their contract was based on the appraisal done by the institution.
He however said that there was no such a reason in the conditions of service, therefore,LCC breached the contract.
The ex workers claim that despite sums for payment of statutory obligations been deducted from their salaries, today, LCC had failed to provide proof of the remittance of the same to ZSIC, NAPSA and NHIMA.
Therefore,the 44 are claiming damages for breach of contract and an order that LCC provides evidence of remittance for paymnent of NAPSA and NHIMA contributions.
They are seeking an order that the unpaid NAPSA and NHIMA contributions for the contract period worked by the plaintiffs be remitted in full with interest.
M’hango and others want the High Court to issue an order for the payment of gratuity at the rate of 25 percent on all the contracts on which gratuity was not paid.
The plaintiffs demand as well proof of remittance of Life assurance in or in the alternative full payment of the same.
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