LABOUR BREACHES COST NEW CENTURY DIAMOND HOTEL K120,000
Lusaka, 24th September 2026
The Ministry of Labour and Social Security has imposed an administrative penalty of K120,000 on New Century Diamond Hotel due to multiple contraventions of labour laws.
During an inspection conducted at the Hotel, it was established that employees were not issued with valid written contracts of employment, failure to maintain records of oral contracts, failure to maintain a payroll or provide employees with pay slips and lack of work place policies.
Other violations were payments below the prescribed minimum wages, contrary to Statutory Instrument No. 48 of 2023 (General) Order, wage cuts from employees who fall sick, despite them producing sick notes certified by health practitioners.
Despite employing more than 25 workers, the Hotel did not register as an employer with the office of the Labour Commissioner, contrary to Section 63 of the Industrial and Labour Relations Act Cap 269 of the laws of Zambia.
The Hotel was also 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 charged, the Ministry directed New Century Diamond Hotel to undertake remedial measures, by providing all employees with written contracts stating their positions and correct salary scales, place the workers on payroll and issue them with pay slips; make workplace policies available to the employees, pay all salary underpayments, stop unauthorized deductions, register as an employer with the Office of Labour Commissioner and engage a qualified Human Resource Officer.
Salary arrears owed to affected employees and separation packages were computed by the Ministry, which have been paid to the workers by the Hotel, prior to signing new contracts of employment for a period of one year.
The Hotel has been ordered to pay the administrative penalty, by Friday September 25, 2026.
The Ministry of Labour and Social Security would like to remind employers that every worker is entitled to clear terms of employment, lawful remuneration and appropriate workplace protections. Employers should therefore ensure full compliance with labour laws to safeguard workers’ rights and promote decent work.
Issued By:
Mwaka Ndawa (MS)
Principal Public Relations Officer
Ministry of Labour and Social Security