Industrial Relations Court (IRC)’s Mzuzu Registry has directed that pension fund administrator Old Mutual should settle pensions of former employees of Agricultural Development and Marketing Corporation (Admarc) in 14 days.
The money amounts to K3 billion.
In an agreement order that we have seen, settled on November 28, 2023, the court, through IRC deputy chairperson Anthony Kapaswiche, says the determination has been made through consent of legal practitioners of Old Mutual and the Admarc ex-employees.
Old Mutual is the second respondent in the case in which 4,062 ex-Admarc staff took their ex-employer to court, demanding their pension funds, repatriation allowances, unpaid salary for skeleton staff, public holidays’ pay and four hours overtime money.
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According to the order, signed by both parties, Old Mutual agreed that they are meant to pay out pension funds to some or all the ex-Admarc employees subject to proper scrutiny of the names.
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“The exercise under paragraph (b) shall be done and completed within 14 days from the date hereof and strictly comply with the tenets of the Pension Act. That failure to meet the above orders shall entitle either of the parties to seek further redress from this honourable court,” the order reads.
The ex-employees sued the parastatal and the pension fund managers for their retrenchment benefits, demanding a collective sum of at least K3 billion.
Recently, the court also granted the ex-Admarc employees an injunction restraining their former employer from evicting them from the institution’s houses until their repatriation allowances are sorted.
In an interview Thursday, lawyer for the ex-employees Leonard Mbulo said the injunction is still in place until the conclusion of the case.
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“Admarc on its part denied that it is supposed to pay the terminal benefits and the court will give directions on how the other claims will be dealt with in light of the denial by Admarc,” Mbulo said.
Admarc officials could not be reached for a comment but, according to statement of reply which we have in our possession, the State-owned company maintains that the ex-employees were duly paid all their terminal benefits.
The parastatal further alleges that all the skeleton staff were paid their salaries for an entire period of five months.
“The respondent repeats the above and states that the applicants were duly paid all their terminal benefits i.e. severance pay; accrued annual leave and payment in lieu of notice on 24th February, 2023 through National Bank of Malawi Plc, who deposited the terminal benefits to the applicants’ respective personal bank accounts,” the response reads.
In September 2022, government closed Admarc and sent its entire staff on paid leave to pave the way for a restructuring.
