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Written Agreements

Malawi's labor law requires that every employer provide their employees with a written statement of the particulars of employment. Specifically, employers are required to provide a written statement to the worker within one month after the worker has commenced work that includes the following:

• The names of the employee and the employer
• The date of commencement of the contract
• The rate of remuneration and the method of calculating remuneration
• The intervals at which salary is paid (wage period)
• The nature of the work to be performed
• The regular hours of work
• Any provisions for the termination of the contract
• Any disciplinary rules that apply to the employee.

Oral Agreements

Malawi's Employment Act defines an "employee" as a person who offers services under an oral or written contract, whether expressed or implied. However, the Act does not provide any additional guidelines on how oral employment contracts are regulated.

Regardless of whether the initial employment contract was oral, the labor law requires that every employer provide each employee with a written statement of the particulars of employment.

Implied Agreements

While Malawi's Employment Act appears to recognize the existence of implied contracts (by defining an "employee" as "a person who offers their services under an oral or written contract of employment, whether express or implied"), it provides no guidance on how implied contracts are regulated.

Malawi's Employment Act stipulates that an employee's regular working hours be set out in the employment contract, provided that no employers require or permit any employee (other than certain specifically exempted employees, such as security guards) to work for more than 48 hours during any week, excluding overtime.

An employer may not require or permit an employee to work for more than 6 consecutive days without a rest period of at least 24 consecutive hours, which must be taken on a customary rest day or a day agreed upon between the parties.

January 1 (New Year’s Day); January 15 (John Chilembwe Day); March 3 (Martyr’s day); March or April (Good Friday), Easter Monday; May 1 (Labor Day) May 14 (Kamuzu Day); July 6 (Independence Day); 15 October (Mother’s Day); December 25 (Christmas Day); December 26 (Boxing Day).

Malawi's Employment Act allows the use of a probationary period in an employment contract with a skilled worker, which the Employment Act defines as "an employee in an undertaking who has [a] special ability to do something for which ability is gained through acquisition, programmed or otherwise, of knowledge, attitude, and behavior."

The parties may agree on the duration of the probationary period, provided that the period does not, in any event, exceed 12 months.

During a probationary period, the employment contract may beterminated at any time by either party without notice.

Notice Period

According to Malawi's Employment Act, the minimum notice period in respect of fixed-term contracts is 14 calendar days. An indefinite term contract may be terminated by either party after a written notice is provided.

The length of the notice period for an indefinite term contract depends on the wage period. For example, the required notice period is one month for workers who get paid monthly.

Either party can waive its right to notice and can also accept payment in place of notice. Instead of providing notice of termination, an employer can pay an employee a sum equal to the compensation they would have received during the notice period and confer on the employee all other benefits due to them up to the required notice period's expiration.

Severance Benefits

Malawi's Employment Act stipulates that severance pay is only due to employees dismissed for economic reasons (termination of a contract due to redundancy, retrenchment, economic difficulties, or the employer's technical, structural, or operational requirements) or employees who are dismissed unfairly. An employee must have completed one year of service to be entitled to severance pay.

Severance pay is not provided under the following circumstances:

• After a termination that occurred during an employee's probationary period
• After dismissal on objective grounds
• After the dissolution of the employer (in cases of partnership) and unreasonable refusal to accept another job offer on similar terms
• After the death of the employer and unreasonable refusal to accept another job offer on similar terms.

The amount of severance pay starts at two weeks' wages for one completed year of service and increases at certain length of service intervals.

Minimum Wage

The minimum wage for employees in micro-sized or small-sized enterprises in Malawi is MWK 2,884.62 (Malawian kwachas) per day or MWK 75,000 per month. The Ministry of Labour also provides minimum wage amounts for other categories of workers, such as domestic workers and cargo truck drivers.

Wages are paid in accordance with the terms of the employment contract, provided that employees whose wages are fixed by the hour, day, or week are paid at least once a week or fortnight, and those with monthly- or yearly-fixed wages at least once a month.

Overtime, Holiday & Vacation Pay

For each overtime hour, an employee must be provided with compensatory rest (of at least equivalent hours) and premium overtime pay. Overtime is allowed only in exceptional cases.

There are three categories of overtime known respectively as:

• Ordinary overtime, which is time worked on a working day in excess of the hours usually worked by the employee
• Day off overtime, which is time worked by an employee on a day during which they would otherwise be off duty, and
• Holiday overtime, which is time worked on a public holiday.

For each hour of regular overtime, an employee shall be paid at the hourly rate of not less than 150% of their regular wage. For each hour of day-off overtime, an employee shall be paid at an hourly rate of not less than 200% of their regular wage. For each hour of holiday overtime, an employee shall be paid at a rate of not less than 200% of the regular hourly rate.

Employees are entitled to their regular pay during annual leave. Workers are entitled to be paid 200% of the regular hourly wage rate for working on a weekly rest day or public holiday.

Visas

Malawi issues the following visas:

• Tourist visa - issued to persons intending to enter Malawi for visits, residence, or business, valid for 3 months and can only be used once.
• Transit visa - issued to persons intending to transit through Malawi for 7 days and can only be used once.
• Official visa - issued to persons holding official or service passports for government official visits to Malawi, valid for 3 months and can only be used once.
• Courtesy visa - issued to persons holding either official, service, or ordinary passports, and is valid for 3 months and can only be used once.
• Diplomatic visa - issued to persons holding a diplomatic passport on an official visit or mission to Malawi, valid for 3 months and can only be used once.

Work Permits

Foreigners offered employment in Malawi must apply for a Temporary Employment Permit (TEP) before starting employment. The employer is responsible for applying for the permit on behalf of the applicant.The local employer should prove that the skills that the expatriate is bringing are not available in Malawi.

The TEP is valid for a period not exceeding 2 years and is subject to renewal.

Required documents (non-exhaustive) include the following:

• Application form for a TEP
• Employment contract
• Curriculum vitae
• Valid passport
• Advertisement for the vacancy
• Academic qualifications
• The TEP is valid for at least 6 months and no more than 2 years.