BUSINESS & ECONOMY
Labour Breaches Cost New Century Diamond Hotel K120,000
The Ministry of Labour and Social Security has imposed a K120,000 administrative penalty on New Century Diamond Hotel for multiple breaches of labour laws.
The penalty follows a labour inspection at the hotel, where several violations were uncovered, including failure to provide employees with valid written contracts of employment and failure to maintain records of oral contracts.
The hotel was also found not to have maintained a payroll or provided employees with payslips, while workplace policies were not made available to workers.
According to a statement issued by Ministry Principal Public Relations Officer Mweene Ndawa, the hotel was further found to have been paying some employees below the prescribed minimum wages, contrary to Statutory Instrument No. 48 of 2023 (General) Order.
The inspection also established that the hotel had been making wage deductions from employees who fell sick, despite the workers providing sick notes certified by health practitioners.
The Ministry said the hotel, which employs more than 25 workers, had also failed to register as an employer with the Office of the Labour Commissioner, contrary to Section 63 of the Industrial and Labour Relations Act, Chapter 269 of the Laws of Zambia.
The hotel was further operating without a qualified Human Resource Officer, in contravention of Section 11 of the Zambia Institute of Human Resource Management Act.
In addition to the K120,000 administrative penalty, the Ministry directed the hotel to undertake several remedial measures.
These include providing all employees with written contracts specifying their positions and correct salary scales, placing workers on the payroll and issuing payslips, making workplace policies available to employees, paying all salary underpayments and stopping unauthorised deductions.
The hotel has also been directed to register as an employer with the Office of the Labour Commissioner and engage a qualified Human Resource Officer.
The Ministry said salary arrears owed to affected employees, together with separation packages, had been computed and paid to the workers by the hotel before they signed new one-year contracts of employment.
New Century Diamond Hotel has been given until Friday, September 25, 2026, to pay the K120,000 administrative penalty.
Meanwhile, the Ministry has reminded employers across the country that every worker is entitled to clear terms of employment, lawful remuneration and appropriate workplace protections.
“Employers should therefore ensure full compliance with labour laws to safeguard workers’ rights and promote decent work,” the statement read.
Efforts to obtain a comment from the owner of New Century Diamond Hotel were unsuccessful.
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