The liquidators winding up the affairs of Air Namibia after it stopped operating in February 2021 have won a Supreme Court appeal about severance pay-outs that have to be made to former employees of the airline.
In a judgement delivered on Friday, the Supreme Court ruled that former Air Namibia employees’ remuneration that they received from the airline included only their basic salaries, housing allowances and transport allowances.
The court’s ruling changes a finding of the High Court which decided in August 2024 that former Air Namibia employees’ remuneration also included the airline’s contributions to employees’ pensions, medical aid and social security.
The Supreme Court directed Air Namibia’s liquidators, Ian McLaren and Simon Steyn, to recalculate the total amount due to be paid to each former employee of the airline in terms of each employee’s employment agreement with Air Namibia.
With that calculation, the liquidators should determine amounts payable to former employees for accumulated leave days, annual bonus payments, severance pay and notice period pay, the Supreme Court ordered.
The court’s judgement was delivered on an appeal that the liquidators lodged against the High Court’s judgement.
The High Court’s judgement was delivered after 81 former Air Namibia employees sued the liquidators to get a declaratory order on the calculation of their remuneration for the purpose of pay-outs that the liquidators had to make to them.
The Supreme Court’s judgement was written by appeal judge Hosea Angula. Appeal judge Esi Schimming-Chase and acting judge of appeal Hannelie Prinsloo agreed with Angula’s judgement.
Read more in the next edition of The Namibian.
