Court orders Castel Malawi to pay K417.7m to former employees, grants 30 days to appeal

By Michael Martin//MALAWI

The Industrial Relations Court has ordered Castel Malawi Limited to pay a total of K417.7 million to 32 former employees who were dismissed from their jobs.

The court found that Castel Malawi failed to follow proper legal procedures when it terminated the employment of the workers, a decision the court said amounted to a violation of their labour rights.

In its ruling, the court stated that the company did not comply with employment laws governing retrenchment and dismissal, rendering the terminations unlawful.

Among the affected employees named in the judgment is Purity Chitalo, alongside 31 others who were found to have been unfairly dismissed.

As a result of the ruling, the Industrial Relations Court ordered Castel Malawi to compensate the former employees with a combined sum of K417.7 million for the losses they suffered.

The court has, however, granted Castel Malawi Limited a 30-day window within which to file an appeal against the judgment if it chooses to challenge the decision.

The ruling underscores the obligation of employers to strictly adhere to labour laws and due process when terminating employees, particularly in cases involving mass dismissals.

The case serves as a reminder to both employers and employees of the role of the Industrial Relations Court in safeguarding workers’ rights and ensuring fairness in employment practices.