MALAWI:  EMPLOYMENT ACT, 2000                                                    MALAWI SDNP
 
 
 
 PART V-CONTRACTS
 
Types of  
contracts
25. (1) Unless otherwise provided by this Act, this Part applies to all types 
            of contracts of employment. 

      (2) A contract of employment shall be in any one of the following forms- 
                 (a) a contract for an unspecified period of time; 
                 (b) a contract for a specified period of time; or 
                 (c) a contract for a specific task. 
 

Probationary  
period
26.  (1) In a contract of employment in respect of a skilled worker, the 
             parties may agree on the duration of the probationary period: 
             Provided that the period shall not, in any event, exceed twelve 
             months. 

        (2) During a probationary period, a contract of employment may be 
              terminated at any time by either party without notice. 

        (3) For purposes of this section, "skilled worker" means an  employee 
              in an undertaking who has special ability to do something, which 
              ability is gained through acquisition, programmed or otherwise, of 
              knowledge, attitude and behaviour. 
 

Particulars of  
employment 
27. (1) Every employer shall give to each employee a written 
            statement of particulars of employment. 

      (2) The statement referred to in subsection (1) shall be given- 
 
            (a) with respect to an employee in employment at the com- 
                  mencement of this Act, within three months of the commence- 
                  ment of this Act, to each employee who is employed by the 
                  employer; and 

            (b) with respect to an employee employed after the com- 
                  mencement of this Act, within one month of his reporting for 
                  work. 
 
      (3) The written statement referred to in subsections (1) and (2) 
            shall include the following particulars- 

                 (a) the names of the employee and of the employer; 
                 (b) the date of commencement of the contract; 
                 (c) the rate of remuneration and the method of calculating 
                       remuneration; 
                  (d) the intervals at which remuneration is paid; 
                  (e) the nature of the work to be performed; 
                  (f)  normal hours of work; 
                  (g)  any provision for the termination of the contract other than 
                         those provided by this Act; 
                  (h) any disciplinary rule applicable to the employee. 

         (4) For the purposes of this section, "employer" means any per- 
               son, body corporate, undertaking or body of persons who or which 
               has in his employment at least five employees. 

Termination  
of contracts
28.  (1)  Subject to sections 29 and 57, a contract of employment for an 
             unspecified period of time may be terminated by either party. 
        (2) A contract of employment for a specified period of time shall 
              automatically terminate on the date specified for its termination and, 
              unless it is expressly or tacitly renewed or prolonged, no notice shall 
              be required for its terinination; 

        (3) Where the purpose or effect of a contract of employment that 
               is purported to be for a specified period  of time or a specific 
               task is the filling on a lasting basis of a post connected with the 
               normal and permanent activity of an undertaking, it.shall be 
               deemed to be a contract of employment for an unspecified period 
               of time. 

        (4) A contract of employment to perform a specific task shall 
              terminate on the completion of the task and, no notice of termination 
              shall be required of either party: 

              Provided that in cases of ambiguity, where an employee is 
              regularly and repeatedly employed and paid wages on the basis 
              of completion of a quantity of work which can be completed in 
              less than 24 hours, the contract of employment shall be deemed 
              to be of an unspecified period of time. 
 

Notice of  
termination  
of contracts
 29. (1) A contract of employment for an unspecified period of time may be 
             terminated by either party upon giving the other party the following 
             minimum period of notice in writing- 

            (a) where the contract is to pay wages at a monthly rate, one 
                  month's notice; 

            (b) where the contract is to pay wages at a fortnightly rate- 

                  (i) one fortnight's notice where the employee has been 
                       employed for less than five years; and 

                  (ii) one month's notice where the employee has been 
                        continuously employed for at least five years. 

              (c) where the contract is to pay wages at a weekly rate- 

                     (i) one week's notice where the employee has been 
                           employed for less than two years; 

                      (ii) one fortnight's notice where the employee has been 
                            continuously employed for a period of not less than two 
                            years but not exceeding five years; and 

                      (iii) one month's notice where the employee has been 
                            continuously employed for at least five years; 

                 (d) where the contract is to pay wages at a daily or hourly 
                        rate- 

                        (i) one day's notice where the employee has been employed 
                            for less than six months; 

                       (ii) one week's notice where the employee has been 
                            continuously employed for a period of not less than six 
                            months but not exceeding two years; 

                      (iii) one fortnight's notice where the employee has been 
                            continuously employed for a period of not less than 
                            two years but less than five years; and 

                      (iv) one month's notice where the employee has been 
                            continuously employed for a period of at least five years; 

             (2) Where the contract of employment for unspecified period of 
                    time is to pay wages at any rate, other than an annual rate, not 
                    provided for in subsection (1), either party may determine the 
                    contract at the close of any da'y without notice. 

             (3) The minimum period of notice in respect of a contract of 
                   employment for a specified period of time shall be fourteen 
                   calendar days. 
 

 
 
Payment in lieu  
of notice 
 30. (1) Section 29 shall not be taken to prevent either party 
             from waiving his right to notice on any occasion or from accepting 
             payment in lieu of notice. 
 
       (2) In lieu of providing notice of termination, the employer shall 
             pay the employee a sum equal to the remuneration that would have 
             been received and confer on the employee all other benefits due to 
             the employee up to the expiration of the required period of notice. 

       (3) Where the employee terminates the contract without notice in 
             circumstance in which notice was required, and the employer has 
             not waived the right to notice, the employee shall be required to pay 
             the employer in lieu of notice a sum equal to the remuneration that 
             would otherwise have been due to the employee up to the expiration 
             of the required period of notice: 
             Provided that the employee shall be entitled to be paid remuner- 
             ation and to receive such other benefits which may have accrued at 
             the date of termination. 
 

certificate  
of termination
31.  (1) On any termination of a contract of employment an employer, if so 
             requested by the employee, shall provide the employee with a 
             certificate indicating- 
 
             (a) the name and address of the employer; 

             (b) the nature of the employer's business; 

             (c) the length of the employee's continuous employment with 
                  the employer; 
 
             (d) the capacity in which the employee was employed prior to 
                   the termination; 
 
              (e) the wages and other remuneration payable at the date of ter- 
                   mination of the contract; and 

              (f) where the employee so requests, the reason for the termination 
                   of employment. 

         (2) The certificate referred to in subsection (1) shall not 
               contain any evaluation of the employee's work unless the 
               evaluation is requested by the employee. 
 

Transfer of  
contract 
 32.  (1) Except as provided in subsection (2), no contract of  employment 
              shall be transferred from one employer to another without the 
              consent of the employee. 

        (2) Where an undertaking or a part thereof is sold, transferred or 
               otherwise disposed of, the contract of employment of an employee 
                in employment at the date of the disposition shall automatically be 
                transferred to the transferee and all the rights and obligations 
                between the employee and the transferor at the date of the disposi 
                tion shall continue to apply as if they had been rights and 
                obligations between the employee and the transferee and anything 
                done before the disposition by or in relation to the transferor in 
                 respect of the employee shall be deemed to have been done by or 
                 in relation to the transferee. 

          (3) Subsection (2) shall not absolve any person of liability to be 
                prosecuted for, convicted of and sentenced for any offence 
                committed prior to the sale, transfer or disposition of the 
                undertaking  refeffed to in subsection (2). 
 

Death of  
employer 
33. If the employer's personal or legal position formed the basis 
      of a contract of employment, the death of the employer shall cause 
      the contract of employment to terminate one month from the date of 
      the employer's death, unless it is otherwise terminated in accordance with 
      section 57 (1) within that period. 
 
Insolvency  
of employer
34. (1) The insolvency or winding-up of the employer's business shall cause 
           the contract of employment of any employee to terminate one month 
           from the date of insolvency or winding-up, unless it is otherwise 
           terminated in accordance with section 57 (1) within that period. 

      (2) This section shall not apply where, notwithstanding the insolvency or 
            winding-up, the undertaking continues to operate or has been 
            transfeffed. 

      (3) On the insolvency or winding-up of an employer's business, the claim 
            of an employee or those claiming on his behalf to wages and other 
            payments to which he is entitled under this Act or any  contract shall 
            have priority over all other creditors, including the State and the social 
            security system, for the following aniounts- 
 
            (a) wages, overtime pay, commissions and other forms of remu- 
                  neration relating to work performed during the twelve weeks 
                  preceding the date of the declaration of insolvency or winding-up; 
 
            (b) holiday pay due as a result'of work performed during the two 
                 years preceding the date of the declaration of insolvency or 
                 winding-up; 

            (c) amounts due in respect of other types of paid absence accrued 
                 during the three months preceding the date of the declaration of 
                  insolvency or winding-up; and 

            (d) severance pay, compensation for unfair dismissal and other 
                  payments due to employees upon termination of their employment. 
 

Severance  
allowance
35. (1) On termination of contract, by mutual agreement with 
            the employer or unilaterally by the employer, an employee shall be 
            entitled to be paid by the employer, at the time of termination, a 
            severance allowance to be calculated in accordance with the First 
            Schedule. 

       (2) The Minister may, in consultation with organizations of 
             employers and organizations of employees; by notice published in 
             the Gazette, amend the First Schedule. 

       (3) The employment of an employee shall not be terminated 
             for reasons connected with his capacity or conduct before the 
             employee is provided an opportunity to defend himself against 
             the allegations made, unless the employer cannot reasonably be 
             expected to provide this opportunity. 

       (4) For the purposes of subsection (1), termination includes 
             termination by reason of the insolvency or death of the employer, 
             but does not include- 

            (a) termination of a contract of employment for a specified 
                 period of time where termination occurs at the expiration of the 
                 specified period; or 

            (b) a contract of employment for a specified task where the 
                  termination occurs at the completion of the task. 

         (5) The payment of a severance allowance under subsection (1) 
               shall not affect the employee's entitlement, if any, to payment in lieu 
               of notice under section 30 or to a compensatory or special award 
               under section 63. 

         (6) Subsection (1) shall not apply where the employee- 
 
              (a) is serving a probationary period as provided for in section 26; 

              (b) is fairly dismissed for a reason related to his conduct; 

              (c) unreasonably refused to accept an offer of re-employment 
                   by the employer at the same place of work under no less 
                   favourable terms than he was employed immediately prior to the 
                   termination; 
 
              (d) is employed by a partnership and his employment ceases on 
                   the dissolution of the partnership and he enters into employment 
                   with one or more of the partners immediately after such dissolution 
                   or unreasonably refuses to accept an offer of employment by 
                   any such partner under no less favourable terms than he was 
                   employed immediately prior to the dissolution; 

              (e) is employed by a personal employer who dies, and the 
                   employee enters into the employment of the personal 
                   representative, widow, widower or any heir of the deceased 
                   employer immediately after such death or he unreasonably 
                   refuses to accept an offer of employment by such person on 
                   no less favourable terms than he was employed immediately prior 
                   to the death. 

        (7) Where the contract of employment is terminated by reason of  the 
              death of the employee, the severance allowance shall be paid to 
              the surviving spouse of the deceased employee or, in the absence of 
              such a spouse, to such other dependent relative as the labour officer 
              may decide. 

        (8) A complaint that a severance allowance has not been paid may be 
             presented to a District Labour Officer within three months 
             of its being due and if the District Labour Officer fails to settle the 
             matter within one month of its presentation, it may be referred to 
             the Court, in accordance with section 64 (2) or 64 (3), which, if the 
             complaint has been proved, shall order payment of the amount due.