Metro Peech which was unable to pay salaries for its 497
employees since August 2023 paid the terminal benefits in December last year.
“Under normal
circumstances and conditions based on your contract of employment, your
terminal benefits worked out using a normal forced termination formula would
have been US$239 gross subject to Pay As You Earn (PAYE) taxation.
“However, due to the forced closure of Metro Peech &
Browne Wholesalers under Corporate Rescue (CR9/23), the agreed Resolution was
that all terminated employees would be entitled to $0.32c per every US$1.00
that was due to them. Based on the provision made for terminal benefits using
the formula of 32 cents per dollar, the terminal benefits due to you will be
US$77 gross subject to Tax.
“Your gross amount comprises Cash In Lieu of Leave (CILL)
paid at $0,32c per US$1. The amount due to you of US$77 net of tax will be paid
to you through Gains Wholesalers by 31 December 2023.”
Mutasa the corporate rescue practitioner for Metro Peech
argued that the payment was the best that could be salvaged. He said a worse
scenario would have emerged had the company been liquidated because both
creditors and employees were going to receive 0.07 cents per US$1.
“As a Corporate Rescuer Practitioner, I feel this was the
best option we had. Metro’s current management and employees were considered
for employment under new contracts by on terms and conditions to be agreed
upon. Masvingo Mirror
0 comments:
Post a Comment