Malawi, formerly Nyasaland, is a landlocked African nation with an estimated population of approximately 18 million primarily rural people with its capital in Lilongwe. After colonization by the British, it became an independent country in the 1960s. As one of the world’s least developed countries, Malawi’s economy is dependent on agriculture and the country’s government relies heavily on foreign aid to meet its development needs, especially in the areas of HIV/AIDS and maternal and infant mortality. Malawi’s ethnic groups include Chewa, Lomwe, Yao, Ngoni, Tumbuka, Sena, Mang’anja, Tonga, Nyanja, and Nkhonde. The official language is English with Chichewa commonly spoken with Christianity and Islam being the major religions practiced.
According to Malawi’s Employment Act, contracts for positions connected with the regular and permanent activity of an organization are deemed to be contracts of employment for an unspecified period (indefinite term). Either party may terminate an employment agreement for an indefinite term upon giving the other party the minimum period of notice in writing.
In cases of ambiguity, where an employee is regularly and repeatedly employed and paid wages based on completion of a quantity of work that can be completed in less than 24 hours, the contract of employment is deemed to be for an unspecified period.
Malawi's labor law requires that every employer provide their employees with a written statement of the particulars of employment. Specifically, employers are required to provide a written statement to the worker within one month after the worker has commenced work that includes the following:
The names of the employee and the employer
The date of commencement of the contract
The rate of remuneration and the method of calculating remuneration
The intervals at which salary is paid (wage period)
The nature of the work to be performed
The regular hours of work
Any provisions for the termination of the contract
Any disciplinary rules that apply to the employee.
Malawi's labor law does not provide any specific guidance on temporary employment contracts. The Employment Act stipulates that a contract of employment to perform a specific task ends upon its completion, and no notice of termination is required of either party.
Malawi's Employment Act allows the use of a probationary period in an employment contract with a skilled worker, which the Employment Act defines as "an employee in an undertaking who has [a] special ability to do something for which ability is gained through acquisition, programmed or otherwise, of knowledge, attitude, and behavior."
The parties may agree on the duration of the probationary period, provided that the period does not, in any event, exceed 12 months.
During a probationary period, the employment contract may be terminated at any time by either party without notice.
Malawi's Employment Act stipulates that an employee's regular working hours be set out in the employment contract, provided that no employers require or permit any employee (other than certain specifically exempted employees, such as security guards) to work for more than 48 hours during any week, excluding overtime.
An employer may not require or permit an employee to work for more than 6 consecutive days without a rest period of at least 24 consecutive hours, which must be taken on a customary rest day or a day agreed upon between the parties.
Malawi's Employment Act entitles every employee (unless specifically exempted) to a period of annual leave with pay of not less than:
18 working days if the employee works 6 days a week
15 working days if the employee works 5 days a week.
The annual leave is to be taken within 6 months of the date the employee becomes entitled to it. However, the leave may be deferred and accumulated by mutual agreement.
Malawi's labor law stipulates that, after completing 12 months of continuous service, an employee is entitled to at least four weeks' sick leave on full pay and 8 weeks' sick leave on half pay each year.
An employer cannot terminate an employee's service during their temporary absence from work because of sickness or injury.
Every 3 years, a female employee in Malawi is entitled to at least 8 weeks of fully paid maternity leave provided by the employer. In the event of illness certified by a registered medical practitioner that arises from pregnancy or confinement and affects the employee or her child, the employer may provide additional paid leave as deemed necessary.
Pregnant employees are entitled to reduced working hours or a more flexible schedule. Upon recommendation by a registered practitioner, pregnant shift workers can change to a shift that is better for their health and pregnancy.
If a female employee applies for maternity leave again before the 3-year period expires, the period of absence will be treated as unpaid leave or annual leave if it has not already been taken.
When an employee is on maternity leave, her regular benefits and entitlements, including her contractual rights and seniority accumulation, shall continue uninterrupted. Her period of employment shall not be considered to have been interrupted, reduced, or broken.
Malawi's Employment (Amendment) Act of 2021 grants employees 2 weeks' paid paternity leave every 3 years.
According to Malawi's Employment Act, the minimum notice period in respect of fixed-term contracts is 14 calendar days. An indefinite term contract may be terminated by either party after a written notice is provided.
The length of the notice period for an indefinite term contract depends on the wage period. For example, the required notice period is one month for workers who get paid monthly.
Either party can waive its right to notice and can also accept payment in place of notice. Instead of providing notice of termination, an employer can pay an employee a sum equal to the compensation they would have received during the notice period and confer on the employee all other benefits due to them up to the required notice period's expiration.
Malawi's Employment Act stipulates that severance pay is only due to employees dismissed for economic reasons (termination of a contract due to redundancy, retrenchment, economic difficulties, or the employer's technical, structural, or operational requirements) or employees who are dismissed unfairly. An employee must have completed one year of service to be entitled to severance pay.
Severance pay is not provided under the following circumstances:
After a termination that occurred during an employee's probationary period
After dismissal on objective grounds
After the dissolution of the employer (in cases of partnership) and unreasonable refusal to accept another job offer on similar terms
After the death of the employer and unreasonable refusal to accept another job offer on similar terms.
The amount of severance pay starts at two weeks' wages for one completed year of service and increases at certain length of service intervals.
