Malawi Enterprise Development Fund staff seek K20 billion in damages

Approximately 80 former employees of the Malawi Enterprise Development Fund (MEDF) are seeking K20 billion in compensation following a ruling by the Industrial Relations Court (IRC) in Mzuzu. The court found that the fund, formerly known as the National Economic Empowerment Fund (NEEF), breached labor laws by failing to follow due process when terminating the staff in December 2025.

IRC Deputy Chairperson Anthony Kapaswiche ruled that the dismissals were unlawful, specifically noting that the fund's belief that probationary employees were not entitled to due process was incorrect. The court stated, “The fact that an employee is on probation does not make them a lesser employee,” and found that MEDF failed to consult the employees regarding operational requirements as required by Section 57 of the Employment Act.

Lawyer for the claimants, Wanangwa Munkhondia, confirmed the group is demanding K20 billion and noted the court is currently hearing evidence to assess damages. MEDF lawyer Alfred Lungu stated the institution intends to appeal the liability finding, describing the compensation claims as “excessive” and noting the employees were on probation with uncertain employment status.