When employment ends in Malawi, several payments may be due, and they have different deadlines.
What may be owed
Outstanding wages for days worked
Payment for untaken leave
Notice pay, if notice was not given and worked
Severance allowance, in the narrow circumstances the Act allows
Gratuity, where the employer is exempt from providing pension
Pension benefits, where a scheme applies
The two deadlines
Section 53 sets them out clearly:
Wages and other remuneration: within seven days of termination
Pension benefits: within six weeks
Those are specific statutory deadlines, not guidelines.
The severance-or-pension question
The first thing to establish is whether you are on a pension scheme.
On pension: no severance allowance is due
Exempt from pension: gratuity applies instead, at 5% of monthly salary per completed month of service
Getting this wrong in either direction is the most common source of disputes.
Checklist before you sign
Was the termination for an economic reason or unfair dismissal? That determines severance.
Are you on a pension scheme? That determines whether severance or gratuity applies.
Has your service been counted from the correct start date?
Is the correct severance band applied — two, three or four weeks per year?
Is untaken leave included?
Is notice pay included where notice was not worked?
If something is missing
Raise it in writing before signing. Signing a settlement without reservation can make later claims harder.
Where to complain
The District Labour Officer handles complaints under the Employment Act and may institute prosecution where the Act has been breached.
Frequently asked questions
What might I be owed when I leave a job?
Outstanding wages, payment for untaken leave, notice pay where notice was not worked, severance or gratuity depending on your situation, and pension benefits where a scheme applies.
How quickly must these be paid?
Wages and other remuneration within seven days of termination; pension benefits within six weeks, under section 53.
How do I know if I get severance or gratuity?
If you are on a pension scheme, no severance is due. If your employer is exempt from providing pension, gratuity applies instead at 5% of monthly salary per completed month.
What should I check before signing?
The reason for termination, whether you are on pension, your start date, the correct severance band, untaken leave and notice pay.
What if something is missing?
Raise it in writing before signing. Signing without reservation can make later claims harder. The District Labour Officer handles complaints.