The Industrial Relations Court (IRC) has ordered Castel Malawi Limited to pay 32 former employees K417.77 million for unfair dismissal and infringement of fair labour practices.
IRC Deputy Chairperson Annie Zinenani Gumulira pronounced the order on assessment on December 16, 2025, following an earlier ruling in March 2024 that found that the applicants had been unfairly dismissed and that they must, therefore, be compensated.
The case, filed in November 2020, was brought by Purity Chitalo and 31 others, who were among close to 300 workers retrenched by the brewer between 2019 and 2020.
“On 27 March 2024, this court found that the applicants had been unfairly dismissed and that they ought to be compensated for the same. We further found that the respondent’s actions had infringed upon the applicant’s right to fair labour practices,” the court order states.
The December ruling was tasked with announcing the quantum of compensation for the applicants’ unfair dismissal, with all 32 workers who were dismissed receiving varying amounts.
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The court order indicates that a right of appeal within 30 days from the date of the order has been advised.
Castel Malawi announced its intention to lay off about 300 workers in May 2019, citing a harsh economic climate compounded by illegal entry of foreign beers into Malawi.
The company indicated that it continued to post losses and was taking necessary measures, including retrenchments, to save itself from collapsing.
However, the affected workers contested the dismissals, accusing their former employer of acting dishonestly by filling the positions they vacated through retrenchment.
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Castel Human Resource and Corporate Affairs Director Gloria Zimba said the company’s legal team was looking into the issue.
“The judgement has just been released. We are waiting for further advice from the legal team,” Zimba said.
