This comes in the wake of Absa Bank Zambia refuting our article we published saying Absa Bank Zambia employees do not deserve any redundancy packages as the transition from Barclays Bank Zambia to Absa Bank was merely a name change.
“The transition from Barclays Bank Zambia PLC to Absa Bank Zambia PLC is treated by law as a name change because the bank remains a going concern.This means that the Bank will continue to operate as normal for the foreseeable future. This also entails that all obligations including benefits accrued by employees for the years served under Barclays, have transferred to Absa who will honour those payments as and when they are due,” said Mato Shimabale, the Bank’s Head for Marketing and Corporate Relations.
In a lengthy Legal opinion, the Lawyers say as the matter is now, Barclays Bank Zambia was extinguished by Absa Bank Zambia hence it is the requirement by Law for Unionized Workers to be paid redundancy packages. They say failure to abide by these guidelines enshrined the Country’s Employment Act may lead to hefty damages.
It has been established that with the transition of Barclays Bank Zambia to Absa Bank Zambia, the Collective Agreement under Barclays Bank Zambia ceased to exist which therefore means Absa Bank Zambia needs to sign new Collective Agreement with the Unionized workers.
Lawyers further adds that Unionized Workers have a right to declare a dispute with Management over the current status. They also say failure to obtain a consent with Absa Bank Zambia is an illegality.
If the situation does not change, Absa Bank Zambia employees are resolved to down tools because they feel let down by Absa Bank Zambia Management.
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