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Home Government & Regulation

Mining sector tightens rules on fixed-term contracts

New agreement sets 12-month minimum contracts and limits renewals

Thomas Chidamba by Thomas Chidamba
April 16, 2026
in Government & Regulation, Legislation & Compliance, Southern Africa, Zimbabwe
Reading Time: 3 mins read
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Coal miners wearing protective clothing and helmets work at a mining site.

Coal miners in protective clothing and helmets work at a mining site, as Zimbabwe introduces new rules on fixed-term contracts aimed at improving job security and conditions in the mining sector, where safety risks remain high. (Image: Freepik)

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  • Zimbabwe sets a 12-month minimum for mining contracts to end short-term hiring.
  • Employers can only renew contracts twice before workers become permanent.
  • New law replaces old rules and aims to improve job security for miners.

ZIMBABWE has introduced new labour rules for the mining sector under Statutory Instrument 71 of 2026, setting stricter conditions for fixed-term contracts and worker protections.

The agreement replaces older frameworks dating back to 1990 and 1993 and now applies across the mining industry.

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Labour lawyer Taurai Mrewa said the changes mark a major shift in how mining companies structure employment contracts.

The new agreement defines a contract worker as an employee engaged on a fixed-term contract of at least 12 months, unless the work is casual, seasonal or task-based.

“All contracts shall be for a period of not less than twelve months,” Mrewa said, citing the provisions of the agreement.

This rule targets the widespread use of short-term rolling contracts that left workers without job security or benefits.

Under the new framework, employers can renew a fixed-term contract only twice.

“Thereafter, an employee shall be deemed to be on a contract without limit of time,” Mrewa said.

This means workers who remain employed beyond two renewals will automatically become permanent employees.

The agreement applies prospectively, meaning contracts signed before its introduction remain valid until they expire.

However, all new contracts and renewals must comply with the new rules.

Mrewa said this will force companies to review their hiring models and align with the updated legal framework.

The agreement also introduces different rules for remuneration depending on the type of contract.

Workers on duration-based contracts fall under the standard wage framework set in the agreement.

Those engaged for specific tasks or projects will have their pay negotiated between employer and employee.

The treatment of leave under the agreement creates a clear distinction between contract workers and permanent employees.

Contract workers are not allowed to take leave during the contract period but receive cash for unused leave at the end.

Mrewa said this could place contract workers at a disadvantage compared to permanent staff.

The agreement also introduces stricter rules on termination.

If most workers at a company are on fixed-term contracts, the expiry of those contracts may be treated as retrenchment.

This means affected workers could be entitled to minimum retrenchment packages.

The financial impact on employers is expected to be significant, especially for companies that relied on short-term contracts.

Industry reports show that the new rules aim to close loopholes that allowed repeated short-term hiring without long-term benefits.

The agreement also introduces broader protections, including limits on contract renewals and clearer notice periods.

Zimbabwe’s mining sector employs thousands of workers across large-scale and small-scale operations.

The changes are expected to have the biggest impact on companies that rely heavily on contract labour.

The reforms come as part of wider efforts to modernise labour practices and improve working conditions in the sector.

The agreement is binding on all employers and employees in the mining industry, regardless of union membership.

Mrewa said employers must now ensure full compliance with the new framework.

“The regulatory framework governing fixed-term contracts has undergone a significant transformation,” he said.

Tags: Employment PolicyFixed-Term ContractsLabour lawMining SectorMining ZimbabweSI 71 of 2026
Thomas Chidamba

Thomas Chidamba

Thomas Chidamba is the Editor of ZiMining. He enjoys collaborating with writers to bring fresh perspectives to mining stories and is committed to making industry insights clear and engaging for readers.

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