Type to search

Metro Peech workers get US$77 terminal benefits

Business Latest

Metro Peech workers get US$77 terminal benefits

Share

GARIKAI MAFIRAKUREVA

MASVINGO – Metro Peech, one of the leading wholesalers has given its workers, some who served the company for over 12 years, terminal benefits of US$77. The package was paid after Sub-Sahara Capital Group (SSCG)-owned, Gain Cash & Carry bought the company in a deal agreed upon towards the end of last year.

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. 

Leave a Comment

Your email address will not be published. Required fields are marked *

error

Enjoy our stories? Please spread the word: