The Industrial Relations Court (IRC) has ordered Kamuzu University of Health Sciences (Kuhes) Council to pay K18.9 billion to 326 employees as compensation for the abolition of their service gratuity benefit.
IRC deputy chairperson Wyson Chamdimba Nkhata, in a judgement dated September 1 2026, awarded the affected employees K17.67 billion in service gratuity and a further K4 million each as compensation for unfair labour practice.
“The respondent [Kuhes Council] is directed to pay the total sum of K18 974 195 864 within seven days from the date of this ruling,” reads the judgement.
The dispute arose after Kuhes abolished the service gratuity benefit in 2024, a decision that prompted the affected employees to challenge the decision at the IRC.
On November 10 2025, the IRC found that the university wrongfully abolished the benefit without undertaking consultation, amounting to an unfair labour practice.
Court records show that Kuhes staff union sought K17.67 billion in gratuity and K7.5 million for each of the 326 affected members as compensation for unfair labour practice.
On the other hand, Kuhes Council proposed compensation of between K500 000 and K1 million per member, arguing that the staff union members remained in employment and continued receiving salaries.
The parties have 30 days to appeal the decision to the High Court of Malawi.
Kuhes was established in 2021 following the merger of Kamuzu College of Nursing and College of Medicine, former University of Malawi constituent colleges.
