Senior Business Reporter
INSURANCE giant Old Mutual Zimbabwe is set to retrench its employees in an effort to restructure the business, a move it described as necessitated by the impact of the Covid-19 pandemic.
The decision comes barely after two years when the group in 2019 shed 10 percent of its workforce in an effort to resize the business.
According to a notice communicated by the CEO Samuel Matsekete, titled Voluntary Staff Retrenchment the company said the Voluntary Retrenchment Scheme shall be implemented upon securing the necessary approvals.
“Trends and changes experienced in the industry over the last few years, compounded by the impact of Covid-19 pandemic have necessitated a review of the Old Mutual Zimbabwe Group’s structure and organisational design to ensure that the organisation is future fit.
“It is against this background that the Old Mutual Zimbabwe Group is announcing a voluntary retrenchment scheme which shall be implemented upon securing necessary approvals,” he said.
Under the voluntary retrenchment scheme, Old Mutual Zimbabwe is offering packages that include the equivalent of 12 months’ salary, plus economic hardship allowance, lump-sum payment as severance pay as at the date of retrenchment.
In addition to that, a gratuity package of 1-month salary for every year of service up to a maximum of 18 years, a three-month salary as notice pay, and twelve months’ medical aid allowance lump sum paid directly to the employee.
The group is also offering cash in lieu of leave based on the Basic pensionable salary as at the date of retrenchment.
“For employees with a balance from their first mortgage loan, fifty percent of the loan tenure becomes due and the remaining balance will be retained on staff rates for the tenure of the loan subject to affordability assessments by CABS,” Matsekete said.
Additionally, pension and other benefits are to be dealt with in accordance with Pension Fund or scheme rules.
Matsekete said all employees willing to be considered for the scheme should submit applications to the company’s human resources department by 30 November 2021.