The Economic And Social Costs Of Constructive Dismissal: A Macro-Level Analysis Of The Impact On Labor Markets And Society In Zimbabwe

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Billiat Chigaga, Copperbelt University

ABSTRACT

Introduction: Constructive dismissal, a form of indirect dismissal, occurs when an employer's behaviour forces an employee to resign. This phenomenon has become increasingly prevalent in Zimbabwe, with significant economic and social implications. This study aims to investigate the macro-level impact of constructive dismissal on labor markets and society in Zimbabwe.

Methodology: We use a quantitative approach, employing secondary data from various sources, including the Zimbabwe National Statistics Agency, the Ministry of Labor, and the International Labor Organization. Our dataset covers the period from 2010 to 2020. We use regression analysis to examine the relationship between constructive dismissal and various economic and social indicators, including GDP, unemployment rates, labor force participation, and poverty levels.

Findings: Our results show a significant positive correlation between constructive dismissal and unemployment rates, labor force participation, and poverty levels. We also find a significant negative correlation between constructive dismissal and GDP. Our regression analysis reveals that a 1% increase in constructive dismissal leads to a 0.5% increase in unemployment rates, a 0.3% decrease in labor force participation, and a 0.2% increase in poverty levels.

Results Analysis: Our findings suggest that constructive dismissal has significant economic and social costs in Zimbabwe. The loss of skilled workers due to constructive dismissal leads to reduced productivity, decreased economic growth, and increased poverty levels. Our results also indicate that constructive dismissal disproportionately affects vulnerable groups, including women and youth.

Conclusion: This study highlights the significant economic and social costs of constructive dismissal in Zimbabwe. Our findings underscore the need for policymakers to address this issue, protect employees' rights, and promote fair labor practices. By doing so, Zimbabwe can reduce the negative impacts of constructive dismissal and promote economic growth, social well-being, and sustainable development.

THE ECONOMIC AND SOCIAL COSTS OF CONSTRUCTIVE DISMISSAL- A MACRO-LEVEL ANALYSIS OF THE IMP.

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Keywords: Economic, Social, Constructive, Dismissal, Labour, Zimbabwe