In Malawi, what you receive when employment ends depends heavily on why it ended.
Termination without cause
Where the employer ends the contract for economic reasons — redundancy, retrenchment, economic difficulties, or technical, structural or operational requirements — severance allowance applies, subject to the one-year qualifying period and the pension rule.
Summary dismissal
Dismissal for serious misconduct. Severance is not payable in these cases.
But the employer must have proper grounds. A dismissal labelled as misconduct without adequate basis may be found unfair — and unfair dismissal does trigger severance.
Resignation
No severance arises. Outstanding wages, untaken leave and any pension benefits are still due.
What to check in your contract
- Your wage period. It determines your notice entitlement.
- Whether a pension scheme applies. It determines severance versus gratuity.
- Your start date. Severance requires one completed year and the band depends on total service.
- Leave entitlement, since contracts often improve on the statutory floor.
- The stated grounds for termination in any contract clauses.
Written records matter
Keep your contract, payslips, any correspondence about your role or pay, and letters relating to disciplinary matters or termination.
Where a dismissal is challenged as unfair, that documentation is what a Labour Officer or court will examine.
Warning signs
Be cautious about paying for a job, for training or for equipment before being hired. And about arrangements where no written contract is issued at all.
Where to go
The District Labour Officer is the first point of contact for complaints under the Employment Act, and can institute prosecution where the Act is breached.