Attorney General (AG) Thabo Chakaka-Nyirenda, SC, has obtained a stay order to stop compensation of about K1.2 billion which the Industrial Relations Court (IRC) in Blantyre granted to 225 former employees of State Residences.
The ex-employees, whose contracts were terminated soon after President Lazarus Chakwera took over power under the Tonse Alliance, dragged government to court demanding damages relating to unfair dismissal, gratuity, notice pay and salary arrears.
Chakaka-Nyirenda confirmed in an interview last week filing a notice of motion for an order seeking stay of the assessment of compensation following a default judgement. He could not divulge further details.
But in the IRC matter number 662 of 2020, the court granted Mabvuto Ndiope and 224 others the sum of K1 157 952 121. 61 on February 3 this year through a default judgement for the reliefs sought.
However, on May 5 2025 the AG filed an application seeking stay of implementation pursuant to Rule 16(1) as read with Rule 25(1)(H) of IRC Procedure Rules.
“The applicant seeks an order for the rescission of the order on the assessment of compensation and for a further order directing that the assessment proceedings concerning gratuity be reheard, with the remaining disputed claims proceeding to a full hearing,” reads the notice of motion.
According to an affidavit of Francis Mac Jessie, senior State Advocate in the AG’s Chambers, in support of the application, the former employees initiated the proceedings against government on September 23 2021 claiming relief on the said grounds following an alleged unfair dismissal.
But a month later the AG Chambers filed a statement of reply contesting the applicants’ (the former employees) claims arguing their contracts of employment were terminated in accordance with Article 111 and other corresponding provisions of their contracts of employment.
Mac Jessie, in his affidavit, says during the pre-hearing conference which took place upon the call of the matter, the parties were unable to reach a compromise.
However, the AG acknowledged that time that government was still calculating the applicants’ gratuity entitlements.
“Due to the complexity of the calculations and the missing employment contracts for some of the applicants, the respondent requested for more time to finalise the computation of gratuity payments.
“At no point did the respondent admit liability regarding the claims for compensation arising from unfair dismissal, notice pay or salary arrears. The respondent defence remains clear on these issues and the matter for liability has not been conceded by the respondent at any stage of these proceedings,” reads the affidavit.
Mac Jessie further claims in his affidavit that on November 1 2024, when the matter was set for hearing both counsels for the respondent and applicants had prior discussions regarding how the hearing would proceed.
These discussions, according to Mac Jesse, were held in consideration of the delay in finalising the calculation of the applicants’ gratuity and as a result both parties reportedly agreed that the court should issue directions on the period within which the respondent should complete the calculation of the gratuity.
Further, Mac Jessie argues that despite agreeing on the court’s directions the applicants prepared an agreed order reflecting the proposed terms of the agreement between the parties, which they did not execute.
“Following the respondent’s failure to comply with the court’s direction regarding the calculation of the gratuity within the stipulated 45- day period the applicant filed a notice of motion of seeking non-compliance order.
“On 17th January 2025, counsel for the applicant informed that the matter had been scheduled for hearing. I expressed surprise at this scheduled hearing and immediately requested that counsel seek an adjournment. Counsel agreed to pursue an adjournment and promised to update me but I did not receive any subsequent feedback from counsel.
“Despite the absence of an adjournment the court proceeded with the assessment of compensation and issued an order on February 3 2025 granting a global sum of K1 157 952 121. 61 for damages relating to unfair dismissal, gratuity, notice pay and salary arrears,” reads the affidavit.
Government is challenging the court that there was no formal judgement on liability, as no signed minutes from the pre-hearing were provided to evidence any admission of liability.
In 2013, about 138 employees who were working for the State Residences during Bingu wa Mutharika’s administration also sued government for unfair termination of their employment contracts and unpaid terminal benefits.
However, government eventually opted for an out-of-court settlement, a development the disgruntled former employees welcomed saying it was “what we all along wanted but the government was not forthcoming and that’s why this issue was brought before court.”
