Employer of Record Guide in 

Zambia

Annual Leave

• Entitlement: 24 working days per year after 12 months of continuous service
• Pro-rata: Available proportionally during first year
• Carry-over: Up to 6 days may be carried to following year
• Cash-out: Unused leave must be paid out on termination
• Scheduling: Subject to employer approval and operational requirements

Sick Leave

Zambian employees are entitled to comprehensive sick leave provisions:

• Total entitlement: 156 days over any 3-year period
• Medical certificate: Required for absences over 2 consecutive days
• Payment: Full pay for first 7 days, then reduced rates
• Chronic conditions: Special provisions for long-term illnesses

Maternity Leave

• Duration: 84 days (12 weeks)
• Payment: Full salary for entire period
• Timing: Can commence up to 6 weeks before expected delivery
• Job protection: Position must be held open during leave
• Medical requirements: Medical certificate confirming pregnancy

Paternity Leave

• Duration: 10 working days
• Payment: Full salary
• Timing: Must be taken within 30 days of birth
• Documentation: Birth certificate required

Compassionate Leave

• Duration: Up to 7 days for immediate family bereavement
• Payment: Full salary
• Documentation: Death certificate or funeral notice required
• Extended leave: Additional unpaid leave may be granted

Study Leave

• Availability: For job-related education and training
• Duration: Varies based on course requirements
• Payment: May be paid or unpaid depending on employer policy
• Conditions: Often requires commitment to remain with employer post-study

Summary

Termination Categories

Termination with Cause:

• Gross misconduct (theft, fraud, violence)
• Serious breach of contract
• Repeated minor offences after warnings
• No notice or severance required

Termination without Cause:

• Redundancy due to business needs
• Poor performance (after proper process)
• Requires notice period and potential severance

Mutual Agreement:

• Both parties agree to end employment
• Terms negotiated between employer and employee

Notice Period Requirements

Notice periods vary based on employment level and length of service:

Payment in lieu of notice is permitted if employer prefers immediate termination.

Severance Pay

Redundancy payments are required when positions are eliminated:

• Calculation: 1 month's salary for each completed year of service
• Minimum: 1 month's salary regardless of service length
• Maximum: No statutory maximum
• Payment timing: Must be paid with final salary

Retrenchment benefits may include additional compensation beyond statutory minimums.

Disciplinary Process

Before termination for cause, employers must follow proper disciplinary procedures:

1. Investigation: Thorough investigation of alleged misconduct
2. Hearing: Employee right to respond to allegations
3. Representation: Employee may have union or colleague representation
4. Documentation: Written records of all proceedings
5. Appeal: Right to appeal disciplinary decisions

Final Pay Requirements

Final payments must include:

• Outstanding salary up to termination date
• Accrued annual leave
• Any overtime or allowances due
• Severance pay (if applicable)
• Notice pay (if applicable)

Payment deadline: Within 7 days of termination or next regular pay date, whichever is sooner.

National Public Holidays

Zambia observes 13 national public holidays annually:

Regional Observances

Some regions may observe additional local holidays or cultural celebrations, though these are not typically statutory holidays requiring paid time off.

Holiday Pay Rules

Eligibility requirements:

• Must have worked the day before and after the holiday (unless on approved leave)
• Applies to all permanent and fixed-term employees
• Casual workers may have different entitlements

Payment rates:

• Normal holiday pay: Regular daily wage
• Working on holiday: Double time rate
• Substitute holidays: If holiday falls on rest day, following working day becomes holiday

Religious Accommodations

Employers should reasonably accommodate employees' religious observances, which may include:

• Time off for religious holidays not covered by national holidays
• Flexible scheduling for prayer times
• Dietary accommodations during religious periods

Required Documentation

Employment Contract must include:

• Job title and description
• Salary and benefits
• Working hours and location
• Leave entitlements
• Termination clauses
• Disciplinary procedures

Employee Documentation:

• National Registration Card (NRC)
• Tax Identification Number (TPIN)
• Bank account details for salary payments
• Educational certificates (if relevant)
• Previous employment references

Work Permits & Visas

For foreign employees:

• Work permit required before commencement
• Self-employment permit for certain categories
• Residence permit for long-term stays
• Dependent permits for family members

Application process:

• Submit application to Department of Immigration
• Provide employment contract and qualifications
• Medical examination may be required
• Processing time varies (typically 30-60 days)

Tax Registration

PAYE Registration:

• Employer must register with Zambia Revenue Authority
• Obtain PAYE certificate
• Monthly returns and payments required

Employee Tax Numbers:

• All employees need Tax Identification Numbers (TPIN)
• Required for salary payments and tax compliance

Social Security Registration

NAPSA Registration:

• Both employer and employee must register
• Obtain NAPSA numbers for contributions
• Monthly contribution submissions required

Banking Requirements

• Employees typically need local bank accounts
• Salary payments usually made via bank transfer
• Some employers may offer mobile money options

Probationary Periods

• Standard duration: Up to 6 months
• Performance evaluation: Regular assessments during probation
• Termination: Shorter notice periods during probation
• Confirmation: Written confirmation required after successful probation

Onboarding Timeline

Worker Classification

Zambian employment law recognises several worker categories with different rights and obligations:

Employees vs Independent Contractors:

• Control test: Level of supervision and direction
• Integration test: How integral work is to business
• Economic reality test: Who bears financial risk
• Mutuality of obligation: Ongoing relationship expectations

Misclassification can result in penalties, back payments of benefits, and tax liabilities.

Trade Unions & Collective Bargaining

• Union membership: Voluntary but common in many sectors
• Collective agreements: May override individual contract terms
• Industrial relations: Formal dispute resolution processes
• Strike action: Legal with proper procedures followed

Health & Safety Requirements

Employer obligations:

• Provide safe working environment
• Safety training and equipment
• Accident reporting and investigation
• Workers' compensation insurance coverage

Employee rights:

• Right to refuse unsafe work
• Safety training and information
• Compensation for work-related injuries

Anti-Discrimination Laws

Protected characteristics include:

• Race and ethnicity
• Gender and pregnancy
• Religion and belief
• Disability
• HIV status
• Political affiliation

Harassment and discrimination are prohibited and can result in legal action and penalties.

Remote Work Considerations

While not extensively regulated, remote work arrangements should address:

• Equipment provision: Who provides computers, internet, etc.
• Health and safety: Home office safety requirements
• Working hours: Maintaining standard hour limits
• Communication: Regular check-ins and availability
• Data security: Protection of company information

Compliance Monitoring

Government agencies involved:

• Ministry of Labour and Social Security
• Zambia Revenue Authority (tax compliance)
• NAPSA (social security contributions)
• Department of Immigration (work permits)

Regular requirements:

• Monthly tax and NAPSA returns
• Annual employment equity reports
• Safety inspection compliance
• Union agreement adherence (where applicable)

What Borderless AI Handles:

When you hire through Borderless AI in Zambia, we manage:

• Employment contract drafting and compliance
• Payroll processing and tax withholding
• NAPSA and other statutory contributions
• Leave management and tracking
• Termination procedures and documentation
• Government reporting and compliance
• Local HR support and guidance

This ensures your Zambian employees receive full legal protections while you maintain compliance with all local employment regulations.