Corporate Layoffs at Avenues Clinic Spark Labour Dispute

The Avenues Clinic in Harare has laid off 50 employees in a move accused of targeting unionised staff (image source)

The Avenues Clinic in Harare, one of Zimbabwe’s leading private hospitals, has laid off 50 employees in a controversial retrenchment exercise that has triggered accusations of union-targeting and raised concerns over labour rights in the corporate health sector.

The retrenchments, confirmed in a letter dated September 16, 2025, signed by Medical Investments Limited (MIL) General Manager Sibusisiwe Ndlovu, are part of a restructuring plan that insiders claim disproportionately affects unionised staff. The move has sparked fears of a looming labour dispute that could disrupt operations at the flagship medical facility.

“We wish to advise you that your position has been affected by the restructuring exercise,” reads the letter shared with online news reporters. “Engagements with you shall commence soon… in a manner which is fair and transparent.”

Sources close to the matter allege that the retrenchment notices were selectively issued to employees affiliated with trade unions. Some of the affected staff have already been placed on paid leave, while others have reportedly been replaced through outsourcing arrangements, particularly in cleaning and support services.

“What boggles the mind is that the organisation has moved swiftly to replace some of the targeted workers,” said one insider, who spoke on condition of anonymity. “New recruits were allegedly warned against joining unions as a condition of employment.”

The allegations, if proven, could violate Zimbabwe’s Labour Act, which protects workers from discrimination based on union membership. The Zimbabwe Congress of Trade Unions (ZCTU) has yet to issue a formal statement, but labour lawyers say the case could set a precedent for corporate accountability in retrenchment procedures.

The retrenchments come amid broader economic challenges facing Zimbabwe’s corporate sector. According to online reports, a growing number of companies are entering judicial management or corporate rescue due to liquidity shortages, inflation, and policy uncertainty. The Avenues Clinic, while not publicly listed, operates within the same volatile environment.

Economist Dr. Prosper Chitambara noted that “the sharp rise in corporate distress reflects a tough macroeconomic environment,” adding that even well-established firms are struggling to maintain profitability.

The introduction of the Zimbabwe Gold (ZiG) currency in April 2024 brought temporary relief to inflation, but its subsequent devaluation by 43% in October 2024 has compounded financial instability. For companies like MIL, cost-cutting measures such as retrenchments may be seen as necessary to preserve operational viability.

Zimbabwe’s Labour Act requires employers to engage in meaningful consultation with affected employees and their representatives before retrenchment. The law also mandates fair compensation and prohibits discriminatory practices. However, enforcement remains inconsistent, especially in the private sector.

In recent years, union activity has declined amid fears of victimisation, particularly in high-profile institutions. The Avenues Clinic case could reignite debate over the role of unions in safeguarding worker rights in Zimbabwe’s evolving corporate landscape.

“This is not just about job losses,” said labour analyst Enock Rukarwa. “It’s about the integrity of our labour laws and the protection of workers in a liberalising economy.”

As of publication, MIL had not issued a statement. Affected employees are reportedly seeking legal counsel and preparing to challenge the retrenchments through the Labour Court.

The outcome of this case could influence retrenchment practices across Zimbabwe’s corporate sector, especially in industries facing economic headwinds. It also raises questions about the balance between cost-cutting and ethical employment practices in a country still grappling with high unemployment and fragile labour protections.

If the retrenchments are found to be unlawful, MIL could face penalties and reputational damage. Conversely, if deemed compliant, the case may embolden other firms to adopt similar restructuring strategies.