Introduction
Informal employment has become the defining structural feature of Zimbabwe’s contemporary economy, shaping labour relations, legal protections and social welfare outcomes. While the de jure (by law, as written) statutory framework cantered on the Labour Act [Chapter 28:01] as amended by the Labour Amendment Act No. 11 of 2023 and underpinned by the Constitution of Zimbabwe proclaims universal protections for workers, the de facto (in practical everyday reality) situation for most workers diverges sharply from these legal ideals. Informal enterprises now dominate the business landscape, with the Zimbabwe National Statistics Agency’s (ZimStat) Economic Census 2024–2025 confirming that approximately 76 per cent of operational business establishments are informal, meaning they are not registered with key regulatory authorities such as the Registrar of Companies, Zimbabwe Revenue Authority (Zimra) or National Social Security Authority (NSSA) and operate largely outside formal labour regulation.
This article examines how Zimbabwe’s labour and social security laws engage with the realities of informal work. It explores legislative reform, constitutional mandates, judicial interpretation, economic and social context and evolving policy frameworks particularly the National Development Strategy 2 (NDS2) 2026–2030 to assess the extent to which legal protections are effective and inclusive.
1. Statutory Framework Governing Labour and Informal Work
1.1. The Labour Amendment Act No. 11 of 2023
The Labour Amendment Act No. 11 of 2023 represents a substantial statutory revision aimed at aligning Zimbabwe’s labour law with constitutional and international labour standards. The Act was gazetted on 14 July, 2023 and amends key provisions of the principal Labour Act [Chapter 28:01], including expanded definitions and protections that are legally binding on all employers and employees.
A central innovation of the 2023 amendment is the imposition of a written contract requirement for all employment relationships, regardless of formality. Section 12 now mandates that employers provide written particulars of employment, thereby creating a baseline evidentiary foundation for claiming statutory rights. Although this reform appears to extend protection to all labour, informal workers who often operate outside recognized employment structures frequently lack enforceable documentation, undercutting the statute’s reach.
The amended Act also broadens protections against workplace violence and harassment by defining these terms comprehensively, including gender‑based violence and harassment, in a manner consistent with constitutional guarantees and international labour norms. Such expansions are meant to secure safer and more equitable workplaces, though their practical application amongst informal enterprises remains uncertain.
1.2. Constitutional Protections
The Constitution of Zimbabwe (Consolidated 2023) provides a foundational anchor for labour rights. Section 65 guarantees everyone the right to fair labour practices, including protection against exploitation and unsafe work conditions and entitles workers to reasonable remuneration. Section 56 enshrines the right to equality and non-discrimination, prohibiting disadvantage on grounds of economic or social status. These constitutional provisions apply universally, yet their operationalization for informal workers who often lack formal recognition as employees is constrained by their inability to enforce rights effectively in the absence of formal contracts or access to judicial remedies.
1.3. Social Security and the NSSA Act
Social protection in Zimbabwe is largely administered through the National Social Security Authority (NSSA) Act [Chapter 17:04]. Under the Act, employers are required to register eligible employees and make contributions to pension, work‑injury and related schemes. However, the statutory framework has historically excluded large swathes of informal workers who do not register with or contribute to NSSA schemes. This exclusion is reinforced by the NSSA’s operational mandate, which remains anchored in formal‑sector employment structures.
NSSA’s strategic planning documents, aligned with earlier National Development Strategy goals, have contemplated expanding coverage to informal workers, but implementation has been limited. According to NSSA’s 2021–2025 strategic plan, the Authority aims to increase occupational safety and health coverage for informal workers, but progress has been incremental.
2. Judicial Engagement with Informality
Judicial interpretations in Zimbabwe have highlighted systemic gaps in the protection of informal workers, often reinforcing the divide between statutory entitlement and practical eligibility.
In Tobacco Processors Zimbabwe (Pvt) Ltd v Tongoona Mutasa & Others HH 420/21, casual workers challenged their repeated engagement under fixed‑term agreements that circumvented statutory permanence provisions. The High Court acknowledged the employer’s use of cyclical short‑term contracts to avoid obligations but ultimately upheld dismissals on technical procedures, implicitly affirming the difficulty in enforcing contractual protections where documentation is absent.
Similarly, in Dzenga v Grain Marketing Board SC 84/23, the Supreme Court clarified that formal sector workers on fixed‑term contracts are entitled to notice and valid reasons before dismissal. However, the Court expressly noted that the absence of written proof of employment precluded similar protections for those without formal contracts, underscoring a legislative lacuna for informal workers.
In Mawire v Rio Zim Limited HH 145/21, formal employees succeeded in recovering unpaid allowances; however, the judgment stressed that informal workers, lacking documentation and formal employment relationships, face “insurmountable barriers” in asserting similar claims further illustrating the enforcement deficit across informal labour relations.
These rulings reveal a judicial approach that emphasizes procedural adherence to existing statutory constructs while leaving systemic reform to the legislature. The result is a jurisprudence that, although consistent in legal reasoning, reinforces the substantive exclusion of workers operating outside formal employment frameworks.
3. Economic and Social Context of Informality
Recent empirical data confirm that informal economic activity is foundational to Zimbabwe’s economy. The ZimStat Economic Census 2024–2025 identified 204,798 establishments as operational nationwide, with an overwhelming 76.1 per cent classified as informal that is, unregistered with primary regulatory authorities and reporting little formal labour or tax compliance. Wholesale and retail trade accounted for the largest share of these establishments.
Informal status is not purely a matter of business registration; it correlates strongly with labour outcomes. The informal economy absorbs a large portion of the workforce, with recent labour surveys indicating high levels of informality in employment classifications. Informal workers often lack access to formal credit, social insurance and enforceable employment rights, contributing to pervasive economic vulnerability.
Multiple analyses also suggest that formal firms bear an outsized share of regulatory and tax burdens while informal businesses operate largely outside these systems, resulting in fiscal challenges for revenue collection and public policy planning. This asymmetry underscores the systemic nature of informality, which is both a driver of livelihoods and a barrier to social protection coverage.
4. National Development Strategy 2 (NDS2) and Policy Context
The National Development Strategy 2 (NDS2) 2026–2030 recognises the structural prevalence of the informal economy and proposes strategic pivots toward inclusion and integration. NDS2 articulates priorities for:
- Contributory social protection schemes tailored to informal workers;
- Portability of accrued benefits across sectors;
- Establishment of a “Social Contract” framework fostering cooperation among government, labour and business to incentivise formalisation while protecting livelihoods;
- Harmonisation of municipal regulations with constitutional labour protections to reduce criminalization of informal work.
NDS2’s objectives signal a policy shift from punitive approaches toward inclusive economic governance, acknowledging that informal work’s persistence requires structural engagement rather than marginalization.
5. Detailed Recommendations for Legal and Policy Reform
To bridge the gap between formal legal protections and the realities of informal employment, Zimbabwe must pursue comprehensive, integrated reforms across legal, administrative and economic domains.
5.1. Expand Social Security Coverage
The NSSA Act should be amended to provide statutory basis for inclusive voluntary contributory schemes for informal and self‑employed workers. This would eliminate the discretionary exclusion under Section 19 and embed coverage pathways that reflect irregular incomes and seasonal work patterns. Designing flexible payment schedules (e.g., daily or weekly contributions) can enhance participation while connecting social insurance benefits to market engagement.
Comparative frameworks in Rwanda and Kenya demonstrate viable models where informal workers contribute to pension and health schemes without rigid formal‑sector employment prerequisites.
5.2. Enforce Written Contracts Through Innovation
Although written contracts are required by the Labour Amendment Act No. 11 of 2023, their absence in practice undermines enforcement. Introducing mobile and digital contract registration platforms (accessible via mobile devices) can enable workers and employers to document engagements in real time, generating verifiable records that support enforcement and dispute resolution.
Moreover, statutory penalties for non‑compliance should be calibrated to contemporary economic conditions, indexed to a stable currency benchmark to retain practical deterrent value.
5.3. Harmonise Municipal Bylaws with National Law
Many municipal bylaws criminalize informal trading, placing constitutional labour rights in tension with local enforcement practices. Harmonisation efforts should reframe municipal regulation from punitive restriction toward supportive integration for example, through designated vending zones, simplified planning approvals and by linking local business licensing to social protection participation.
Streamlining local compliance mechanisms, akin to Kenya’s Huduma Centers, can reduce regulatory friction and support sustainable informal enterprise operations.
5.4. Decentralise Labour Dispute Resolution
Access to justice remains a significant barrier for informal workers. Zimbabwe should operationalise decentralized dispute resolution through mobile labour tribunals or statutory dispute resolution officers empowered to resolve wage, contract and termination disputes locally and at low cost. Decisions should be registerable for enforcement in magistrates’ courts, expediting access to remedies without requiring formal High Court litigation.
5.5. Promote Economic Inclusion and Financial Literacy
Informal workers often lack access to formal credit facilities. Leveraging transaction data (e.g., from mobile money platforms and the Intermediated Money Transfer Tax) to build formal credit profiles can unlock access to regulated microfinance and banking services. Complementary programmes in financial literacy, business management and digital skills training can improve productivity and compliance with labour and tax obligations, enabling upward mobility and greater formal integration.
5.6. Embed Gender‑Sensitive Labour Protections
Given women’s overrepresentation in many informal trades, labour protection strategies must be gender‑responsive. This entails ensuring equal treatment in social protection schemes, targeted measures to reduce gender‑based harassment and violence (as expanded under the 2023 Labour Amendment Act) and enforcement mechanisms sensitive to the unique vulnerabilities women face in informal labour markets.
Conclusion
Zimbabwe faces a profound challenge in reconciling its formal legal protections with the lived realities of an overwhelmingly informal workforce. Although the statute book particularly the Labour Amendment Act No. 11 of 2023 and the Constitution enshrines broad labour rights, the practical enforceability of those rights for informal workers remains constrained by lack of documentation, limited social security coverage and regulatory fragmentation at the municipal level.
Economic data show that informal enterprises represent more than three‑quarters of operational businesses and likely dominate employment outcomes, underscoring the imperative for law and policy to engage informality not as a residual category but as the central labour market modality. Harmonising statutory reforms with decentralised enforcement, expanded social protection, economic inclusion strategies and municipal cooperation presents the most viable path forward.
Success in this endeavour will determine whether Zimbabwe can align its legal architecture with the economic and social realities of the 21st century and deliver on constitutional promises of equality, fair labour practices and dignified work for all.
By Nigel Panavanhu – 26/02/2026