Old Mutual offers improved voluntary retrenchment scheme

OLD MUTUAL Zimbabwe this week offered an improved voluntary retrenchment scheme to manage its operational costs, occasioned by the economic hardships in the country.

Jonas Mushosho, Old Mutual’s chief executive, said the Stoke Exchange-listed entity was going through a rough patch due biting economic challenges, including the high inflation rate which has led to them offer a better and improved retrenchment package to their employees.

Mushosho said all employees willing to be considered for the scheme should submit applications to the company’s human resources department by October 21, 2019.

He said successful applicants would receive their retrenchment packages at a time soon to be advised.

“Equivalent of 12 months total gross pension (TGP) plus economic hardship allowance (EHA) lump sum payment as severance pay as at the date of retrenchment, including three months TGP plus EHA as notice pay would be extended to successful applicants,’’ Mushosho said.

The Old Mutual CEO also said a gratuity package of 75% of monthly TGP plus EHA for each year of service up to a maximum of 24 years would be granted.

According to Old Mutual, medical aid contributions for those on voluntary retrenchment would continue for a year from the date of retrenchment.

Pensions of affected employees were also going to be dealt with in accordance with the pension fund rules, said the insurance company, adding that cash in lieu of leave for those retrenched would be calculated based on total gross pension plus EHA as at date of retrenchment.

Staff members above 55 years are eligible to apply.