IN THE INDUSTRIAL RELATIONS COURT OF MALAWI
MATTER NO. IRC 374 OF 05
- AUCTION HOLDINGS
- CORAM: R. ZIBELU BANDA - CHAIRPERSON
- Likongwe of counsel for respondent
- Gulumba of counsel for applicant
- Chinkudzu Official Interpreter
App 1: Takes oath and states : I am J. Fungatira Box 5970, Limbe. I was employed on 1/11/78 by respondent as permanent employee till 2004. In 2004 I was employed on three year contract.
Looks at document - contract dated 23/02/04 - its a 3 year contract
The contract was terminated after 2 seasons
Clause 16.2 termination
Court: APP 1
Looks at document restructuring date 2/08/2005 - This time tobacco selling had been completed at Limbe, but was continuing in other floors. The transaction in the other floors had no connection with the Limbe floors.
Court: AP2 letter of termination I was on contributory pension scheme.
Terminal benefits I only got severance allowance pension was not paid. We were surprised that some got both while some of us only received severance allowance. For example Mrs Phoya told me that she received both pension and severance allowance. I did not know that I was overpaid. I was not aware that I had been paid more. I did not play a role with the calculations of severance allowance. The respondent indicated that they paid tax deducted from my severance. I wasnt aware that they were deducting tax.
Looks at document severance computations
It does not show any tax deductions
Looks at document - Pension computations
It mentions tax deducted from the pension
Court : AP4
Looks at document - Pension benefits for Mrs D. Phoya ( a colleague )
Looks at document - restructuring Mrs Phoya - severance allowance
XXN: The season in Limbe was over as of 2/08/05 the season was over as at 2/08/05. I received notice pay.
Severance allowance - I got my severance allowance but not pension
This was January 2004. I was supposed to be paid either pension or severance allowance. I complained in 2005 because those who received later got both pension and severance allowance
I was not on pension in August 2005. Mrs Phoya was not retrenched in January 2004. the time of retrenchment between myself and Phoya was different. Laws I dont know whether the law had changed at this time. I received K2.7 million severance allowance. I did not expect anything else after this.
I was employed in November 1978. My salary then was around I cant remember.
Looks at document in 1982 my salary was K3966 per annum
Looks at document - salary progression from 1981 Its possible that between 1981, I was getting less.
Tax it has not been deducted from my severance allowance.
Looks at AP4
Total contributions on AP4
This was lower than we got as severance allowance
Re - Exam Letter of 2/08/05 termination
Letter to Mrs Phoya 2/08/05
Reasons for termination were restructuring they are the same reasons as those in the Phoya case.
There was no consultation.
There was no consultation on tax deduction
Question By Court: January 2004 - we were given the letter terminating our permanent contracts. We got severance allowance in January 2004.
Mrs D. Phoya she got her severance allowance in August, 2005. Her contract was not terminated in January 2004
Terminal benefits gratuity
Court: Written submissions - not more than 3 pages long
Ruling - 21 days
CERTIFIED AS A TRUE COPY OF THE ORIGINAL