Labour Ministry Penalises New Century Diamond Hotel K120,000 Over Labour Breaches

The Ministry of Labour and Social Security has imposed a K120,000 administrative penalty on New Century Diamond Hotel in Lusaka for multiple breaches of labour laws.

The penalty follows an inspection conducted at the hotel, during which the Ministry established that employees were not being issued valid written contracts of employment.

The Ministry also found that the hotel had failed to maintain records of oral contracts, maintain a payroll, provide employees with payslips and make workplace policies available to workers.

Other violations included payments below the prescribed minimum wages, contrary to Statutory Instrument No. 48 of 2023 (General) Order, as well as salary deductions from employees who fell sick despite presenting certified medical notes.

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, Cap 269.

The hotel was further found to be operating without a qualified Human Resource Officer, contrary to Section 11 of the Zambia Institute of Human Resource Management Act.

In addition to the administrative penalty, the Ministry has directed the hotel to provide all employees with written contracts indicating their positions and correct salary scales, place workers on payroll and issue payslips.

The hotel has also been directed to make workplace policies available to employees, pay all salary underpayments, stop unauthorised deductions, register with the Office of the Labour Commissioner and engage a qualified Human Resource Officer.

The Ministry said salary arrears owed to affected employees and separation packages were computed and paid to the workers by the hotel before new one-year employment contracts were signed.

The hotel has been ordered to pay the K120,000 administrative penalty by Friday, September 25, 2026.

The Ministry of Labour and Social Security has reminded employers that workers are entitled to clear terms of employment, lawful remuneration and appropriate workplace protections, urging employers to comply with labour laws to safeguard workers’ rights and promote decent work.