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Mphanje v Population Services International (IRC 30 of 2005) [2007] MWIRC 12 (31 December 2007)

.RTF of original document


IN THE INDUSTRIAL RELATIONS COURT OF MALAWI

PRINCIPAL REGISTRY

MATTER NO. IRC 30 OF 2005

BETWEEN

MPHANJE.………………………………… ……..……………………....APPLICANT

-and-

POPULATION SERVICES INTERNATIONAL…... ……………..RESPONDENT


CORAM:   R. ZIBELU BANDA (MS.); CHAIRPERSON
                  D. NAMANDWA; EMPLOYERS’ PANELIST
NC KAJOMBO; EMPLOYEES’ PANELIST
Kondowe (Ms); of Counsel for the Applicant
Ngwira; of Counsel for the Respondent
                  Ngalauka; Official Interpreter


JUDGMENT
1.      
Deductions-Lawful deductions from employee-An employer entitled to deduct money from an employee’s wages as restitution-For property damaged by the employee
2.      
Procedure-Employer to act reasonably-Regard to be had to the nature of the violation-employees duties-penalty imposed-procedure followed-nature of damage incurred-previous conduct and circumstances of the employee

Facts
The applicant was employed as Driver. On the material day he was on duty. He was driving around some members of staff who were delivering mosquito nets. At the close of the day’s business there was a shortage of mosquito nets. The applicant was dismissed on account of this shortage. In calculating and paying out his terminal benefits, the respondent deducted MK50 000-00 being the cost of lost nets attributed to the applicant. The applicant challenged this deduction. He contended that it was unfair because as Driver he was not responsible for the custody, handling or distribution of the nets. The nets were not under his control. The respondent on that other hand alleged that the applicant being Driver of the vehicle that had a shortage of the nets was responsible for the loss and hence the deduction.

Issues
Whether the Respondent lawfully deducted the sum of K50 000.00 from the applicant’s terminal benefit? Whether the Respondent led sufficient and convincing evidence substantiating that the applicant stole the concerned blue nets and was therefore liable for this loss? Whether the applicant was in charge of the blue nets in question?

The Law
Section 56(4) and (5) of the Employment Act provide that an employer may deduct a sum of money from an employee as restitution for property damaged by that employee. It provides further that in taking this decision the employer must take into consideration among others the duties of the employee and the penalty imposed on the employee.

In the instant case the court heard that the applicant’s duties were that of driving other members of staff who were responsible for delivering nets to various places. The applicant just drove the vehicle from one place to another. Therefore the court found that the applicant’s duties did not include accounting or having custody or in control of the nets. Therefore he could not be held accountable for the lost nets.

The court also heard that the money was deducted after the applicant had had his services terminated. Section 56(5) provides that the employer must act reasonably and in any event a court must consider the penalty that the employer imposes on an employee. The court found that this was double punishment, first a termination and then secondly the deduction which the court has found unjustified.

Finding
The court finds that the deduction of the sum of K50 000.00 from the applicant’s terminal benefits was unfair and unjustified as the respondent did not have sufficient and convincing evidence to substantiate the allegation that the applicant was responsible for the missing nets. The court further finds that the applicant was in fact not in charge of the nets in question. Consequently the respondent is ordered to reimburse the applicant the MK50 000-00 plus interest to be assessed from the date when the terminal benefits were due to when the money is paid.

Any party aggrieved by this decision has the right of appeal to the High Court within 30 days of this decision.

Made this 31st day of December 2007 at BLANTYRE.

Rachel Zibelu Banda
CHAIRPERSON


Daphter Namandwa
EMPLOYERS’ PANELIST


Nick Chifundo Kajombo
EMPLOYEES’ PANELIST


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