Source: Court orders review of US$818k compensation in Petrozim dispute – herald
Court Reporter
THE Supreme Court has ordered a recalculation of compensation awarded to former Petrozim Line deputy general manager Johannes Manyenga, overturning a Labour Court decision that had resulted in double compensation amounting to US$818 000.
The superior court found that the Labour Court misapplied legal principles in its assessment of damages and issued directives contrary to established law.
The case was remitted for a fresh assessment of damages aligned with labour law principles.
However, the Supreme Court upheld Manyenga’s cross-appeal, awarding him an adjusted amount of US$734 994,16 in back pay and benefits, which includes previously excluded contractual entitlements such as professional subscriptions and allowances.
Manyenga’s dismissal in 2019 over misconduct sparked a protracted dispute with the state-run petroleum firm.
In May 2023, the Supreme Court ruled that he should either be reinstated or compensated if reinstatement was not possible.
When Petrozim rejected his return, the Labour Court ordered payments totaling US$818,000, including US$608 535 in back pay and benefits, US$210 263,52 in damages, and additional entitlements like a company vehicle, leave pay, and pension contributions.
The Supreme Court ruled that awarding damages alongside back pay constituted double compensation.
It underscored the principle that employees must mitigate their losses by seeking alternative employment after dismissal.
The court also found that the Labour Court’s directive for Petrozim to sell a vehicle to Manyenga without valuing it or considering company policy was legally flawed.
Several aspects of the Labour Court’s ruling, including additional damages, interest, vehicle sale, and pension contributions, were set aside.
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