The affected workers, who were employed at TNM’s call centre on fixed-term contracts, were not enrolled in the pension fund despite legal provisions mandating their inclusion.

The Communication Workers Union of Malawi (CWUM) has contested TNM’s stance, stating that all employees, regardless of contract type, are entitled to pension contributions under the Pension Act of 2023. CWUM General Secretary Hamilton Delezah criticised the company’s failure to comply, attributing the omission to arrogance, ignorance, or negligence on the part of TNM’s management.

“These employees worked at the call centre under contracts ranging from three to four years, with some having been employed as early as 2017,” Delezah explained. “Under the law, every employee is entitled to pension contributions, but TNM management insisted that contract workers were exempt, which is incorrect.”

Following sustained pressure from the union, the case was escalated to the Reserve Bank of Malawi, which regulates pension matters in the country. The bank ruled in favour of the former employees, ordering TNM to compensate them with the total pension contributions owed, plus penalties.

“The company must back-calculate 15% of each employee’s monthly salary over their period of employment, apply the prevailing base lending rate as interest, and add a 10% penalty,” Delezah stated. “This equates to approximately 40% per year.”

TNM has been given 14 days to comply with the ruling and settle the outstanding pension payments. The decision has been widely regarded as a precedent-setting move, reinforcing the pension rights of fixed-term contract workers across Malawi.

--ChannelAfrica--