Ex-Medf employees demand K20 billion

At least 80 former employees of the Malawi Enterprise Development Fund (Medf) are demanding K20 billion in compensation after the Industrial Relations Court (IRC) ruled their dismissals were unlawful. In a judgment delivered on June 16 2026 in Mzuzu, the IRC found that Medf, formerly the National Economic Empowerment Fund (Neef), breached labour law by failing to follow due process in terminating the workers in December 2025. Lawyer for the claimants, Wanangwa Munkhondia, said the court is currently hearing evidence to assess damages.

“We are demanding K20 billion for the 80 applicants,” Munkhondia said in an interview on Friday. “There were 55 applicants at the commencement of the action and an additional 27 were added before judgment. One has since withdrawn.” He said the court had so far heard evidence from five of the 80 applicants and that both parties were sorting out “housekeeping issues”, including verification of identity documents.

In his ruling, IRC Deputy Chairperson Anthony Kapaswiche awarded compensation for unfair dismissal and damages for unfair labour practices to Yamikani Vincent Jamu and 79 others who were on probation at the time. The court dismissed Medf’s argument that probationary employees were not entitled to due process. “The fact that an employee is on probation does not make them a lesser employee,” the judgment reads.

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“In cases of termination, the requirements of Section 57 of the Employment Act have to be adhered to.” Section 57(1) requires an employer to have a valid reason connected to capacity, conduct, or operational requirements before terminating employment. The court found that Medf failed to consult the employees prior to termination on grounds of operational requirements. The applicants abandoned their initial prayer for reinstatement.

The court set July 7 2026 for assessment of damages. Medf lawyer Alfred Lungu said the institution intends to appeal the liability finding and described the K20 billion claims as “excessive”. “These were all employees on probation.

Some of the claims are way overboard. It was uncertain whether their employment would continue,” he said. Medf further argued that if the terminations were illegal due to the absence of a board, then the recruitments made during the same period were also irregular.

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