Transfer of undertaking under Section 16 of the Zimbabwean Labour Act [Chapter 28:01]

Abstract

The contemporary corporate world has evolved to resemble a vicious jungle where “survival of the fittest” is the rule. In order to survive and adapt, businesses have adopted various strategies and business restructuring is one prominent example. Apart from adopting business restructuring as a survivalist strategy, businesses have also restructured due to other reasons such as technological changes, the changed nature of doing business, new management methods, finance related issues and new work methods. Since restructuring entails the act of reorganizing the legal, ownership, operational or other structures of a business for purposes of making it more profitable or better organized for its present needs, it can take various forms. These may include transfers due to sale of business, mergers, acquisitions and takeovers, exchange of assets and outsourcing of non-core functions or business activities.