Minister gets his way in RANI-EPSN labour dispute

Renthia Kaimbi

RANI Traders CC is set to take over approximately 2 700 employees currently placed at the company through Employees Placement Services Namibia CC (EPSN), under a memorandum of understanding (MOU) that provides for the transfer of workers’ employment and the recognition of their existing service records and benefits.

The agreement, reached by the two parties in October 2026, sets out the terms under which the workers will move from EPSN to RANI and become directly employed and supervised by RANI.

According to the MOU, the transfer is scheduled to take effect three calendar months after the date on which the last party signs the agreement, unless the parties agree in writing to another date.

The MOU follows efforts by Justice and Labour relations minister Fillemon Wise Immanuel to resolve a protracted employment dispute involving the workers placed at RANI but formally employed by Employment Placement Services Namibia (EPSN).

Immanuel told the Windhoek Observer that while RANI has three months to conclude employment contracts with every employee, the ministry appreciates the understanding between the two parties.

“We will monitor the transfer process until its logical conclusion during the three months. We appreciate the understanding between the parties albeit it having taken too long,” said Immanuel.

The agreement provides for the recognition of each employee’s original date of engagement with EPSN, ensuring that accumulated service, seniority, accrued leave and other employment benefits are carried over when the workers transfer to RANI.

It also provides that employees must not receive a basic salary or wage lower than the rate they earned through EPSN immediately before the transfer.

Under the agreement, RANI must pay employees at the same basic salary or wage rate as its existing workers in comparable positions, provided that the transferred employees do not earn less than their previous rates.

The company is also required to enrol the transferred workers in applicable employee benefit schemes without delay, in line with the Labour Act, the Social Security Act and other relevant legislation.

The MOU further states that, subject to prevailing economic conditions and the provisions of the Labour Act, RANI guarantees the continued employment of the transferred employees.

The agreement provides for an individual consent process through which each employee must confirm that the proposed transfer and its terms have been explained in a language they understand.

Employees are required to consent freely and voluntarily to the transfer, verify the accuracy of their personal and employment details, and agree to sign a written employment contract with RANI on terms no less favourable than those stipulated in the MOU.

The consent document also provides for workers to receive an opportunity to ask questions and obtain advice, including from a trade union representative, before signing.

The MOU states that RANI must recognise employees’ continuous service with EPSN for all purposes, including seniority, leave and benefits.

The accompanying draft employment contract also provides that no probation period will apply to transferred employees.

The draft contracts stipulate that ordinary working hours must not exceed 45 hours a week and that overtime must be agreed upon and paid in accordance with the Labour Act.

They also provide for annual, sick, compassionate and maternity leave in accordance with the law, as well as the transfer of accrued leave recorded in the employee register.

To oversee the transition, RANI and EPSN have agreed to establish a Joint Transition Committee comprising equal numbers of representatives from both parties.

The committee is scheduled to meet monthly for the first three months, commencing on 10 October 2026, to address operational issues and disputes arising from the transfer.

Written minutes must be kept for every meeting, recording attendance, discussions, decisions and agreed action items.

These minutes must be circulated within seven days after each meeting and retained by RANI for the duration of the transition and for at least three years thereafter.

The agreement further provides that disputes concerning its interpretation or implementation must first be addressed through good-faith negotiations between the parties.

If a dispute remains unresolved within 14 days after written notification, it may be referred to private arbitration before an arbitrator agreed upon by both parties.

However, the MOU makes clear that the arbitration process does not remove employees’ right to refer disputes to the Labour Commissioner under the Labour Act.

The agreement also commits RANI to respecting employees’ freedom of association, including their right to form and join a trade union of their choice, participate in lawful union activities, and serve as trade union representatives.

RANI undertakes not to discriminate against, victimise, prejudice or dismiss employees for exercising, or refusing to exercise, these rights. It also prohibits requiring employees or prospective employees to refrain from union membership as a condition of employment.

The MOU requires RANI to file a copy of the agreement with the office of the minister responsible for labour after it is signed.

Following completion of the transfer, RANI, with EPSN’s cooperation, must submit a written report to the minister within 90 days after the effective date.

The agreement is governed by Namibian law and states that any amendments must be made in writing and signed by both parties.

The MOU records the framework for transferring the employees, while its annexures provide for an employee transfer register containing individual employment details, a consent letter and a draft contract of employment.

The agreement does not specify a final transfer date, as this depends on the date of the last signature or a subsequent date agreed upon in writing by the parties.