When is severance allowance owed in Malawi?
Only on redundancy, retrenchment, economic difficulties, the employer’s technical, structural or operational requirements, or unfair dismissal. The Act says these circumstances and not any other.
How is severance calculated?
Two weeks’ wages per year for 1 to 5 years of service, three weeks per year for 6 to 10 years, and four weeks per year from 11 years upward. One completed year is required to qualify.
Do I get severance if I am on a pension scheme?
No. Pension replaced severance compensation, so no severance payment is due if you are on pension.
What is gratuity?
Where the employer is exempt from providing pension, gratuity applies instead: 5% of monthly salary for each completed month of service, after three months of qualifying service.
How much notice am I owed?
It depends on your wage period. One month if paid monthly; shorter scales apply for fortnightly, weekly and daily paid workers, rising with length of service.
How quickly must I be paid after termination?
Wages and other remuneration within seven days, and pension benefits within six weeks, under section 53.
Is severance owed if I resign?
No. Severance does not arise on resignation or on summary dismissal for serious misconduct.
What happens to leave I never took?
It should be paid out as part of your final settlement. Keep your own record if your employer does not maintain a formal leave register.
Where do I take a complaint?
The District Labour Officer handles complaints under the Employment Act and can institute prosecution where the Act is breached.
Is Saplic free to use?
Yes. Creating your profile, searching for jobs and applying costs nothing, now or later. There is no app to install either.