Gov’t Warns Firms Over Expatriate Salary Fraud and Labour Trafficking
Southern Province Assistant Labour Commissioner, Dr Joseph Kaindama, has issued a stern warning to employers against under-declaring expatriate salaries, describing the practice as a serious violation of Zambia’s labour laws and a threat to fair employment standards.
Speaking during an inspection at Bwana Logistics in Ndola, Dr Kaindama said the Government would not tolerate tax evasion, deception, or any form of labour trafficking. His remarks followed a company briefing in which the Human Resource Officer, Makupi Chiyobe, claimed that only five expatriates were employed, each earning K9,000.
Dr Kaindama expressed concern that some companies deliberately misrepresent expatriate earnings to avoid paying appropriate taxes and statutory contributions. “Under-declaring salaries not only violates the law but also creates unfair competition in the labour market. Employers must be transparent and comply fully with all legal requirements,” he said.
He stressed that expatriate workers should only perform duties outlined in their approved work permits, warning that violations could amount to labour trafficking. “You cannot bring in someone from China and pay them such amounts. We will investigate—we will not support labour trafficking,” he cautioned.
The Assistant Labour Commissioner further reminded employers to prioritise decent working conditions, including providing personal protective equipment (PPE), safe workplaces, and adequate rest periods. “Safety is non-negotiable. We could have suspended operations, but we are giving you a few hours to ensure workers have masks. Every worker, Zambian or expatriate, deserves proper protection on the job,” he said.
Dr Kaindama also underscored that rest days are a legal entitlement and essential for productivity and safety. “Overworked employees are less productive and more prone to accidents,” he noted.
He added that all employees must be issued payslips reflecting their full earnings and statutory deductions to ensure transparency and compliance with the Employment Code Act No. 3 of 2019.
Following the inspection, Bwana Logistics was fined K40,000 for maintaining unhygienic toilet facilities.
