Oral Contract of Work

What is an Oral Contract of Service?

An Oral Contract of Service is a contract of service entered into by word of mouth. It is sometime referred to as verbal contract. The Employment Act provides that all contracts of service other than contracts which are required by law to be made in writing be made orally.  

When is it considered an Oral Contract of Service?

Oral contracts of service are legally binding if certain factors are put into consideration by the agreeing parties: 

• An oral contract shall be deemed to be a contract for the period to which it has been agreed and to which wages are calculated.
• Where wages are calculated by reference to any period of less than a day and provided that there is no other agreement to the contrary, then such oral contract shall be deemed to be a daily contract.
• Each party to an oral contract for a period not exceeding one month shall, on the termination of such contract, be conclusively presumed to have entered into a new oral contract.

Can Oral Contracts be terminated?

Yes. Oral contracts can be terminated provided that notice to terminate employment has been given by either party and the period of notice has expired. 

In the absence of any agreement providing for a period of notice of longer duration, the length of notice of termination shall be: 

• Twenty-four hours where the contract is for a period of less than a week.
• Fourteen days where the contract is a daily contract under which, by agreement or custom, wages are payable not at the end of the day, but at intervals not exceeding one month.
• Thirty days where the contract is for a period of one week or more.

Do I need a specific period to tender notice to terminate my Oral Contact?

No. Notice to terminate employment may be either verbal or written and may be given at any time, and the day on which the notice is given shall be included in the period of notice.

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Find out more about Minimum Wages in Zambia.