The High Court of Malawi has ordered TNM plc to pay 54 former employees about K1.5 billion compensation for unfair dismissal following retrenchment the telecommunication company affected in 2023.
The High Court’s decision follows an application by the former employees led by Eric Thomson, challenging the Industrial Relations Court’s ruling dismissing their claim for unfair dismissal on the grounds that the said dismissal was fair.
In the application, the former employees, among others, argued that TNM plc did not consult them before implementing the retrenchment.
Delivering the ruling in chamber on Tuesday, High Court’s Revenue Division assistant registrar Christopher Makumba agreed with the employees that they were not consulted and that they were ambushed in the retrenchment exercise.
He then ordered TNM Plc to pay each former employee a five month salary for each year of their respective service, with the highest, getting about K312.4 million.
Reads the ruling in part: “Having considered all the factors, I find it reasonable to award five month’s salary for each year of service. This has to apply across the board because the appellants were subjected to the same condition in effecting their dismissals…
“All in all, I find that the compensation for unfair dismissal herein is K1 456 324 019.00. I order the respondent Telecom Networks Malawi Plc, to pay the appellant the sum of K1 456 324 019.00.
“They [54 former employees] shall each be paid their dues in accordance with the above table [showing number of years each employee worked, annual remuneration, discretionary compensation and multiplied by five months] and subject to their agreement with their counsel and the law.”
The former employees were represented by lawyers Luciano Mickeus and Hope Mvonye while TNM Plc was represented by Patrick Mpaka, a former Malawi Law Society president.
TNM plc retrenched the workers during “a transformation process to ensure that the firm achieves its mission of providing the best digital experience” according to a statement the firm released that year.
