Clive Chirwa had been head-hunted by Sata to return to Zambia and take over as CEO of Zambia Railways. Just three months into the five-year contract, however, he was fired. He was told that he was being ‘retired in the public interest’. But Chirwa’s contract stipulated he was to be paid for the full five years if the contract were to be terminated for any reason other than ‘disciplinary’. The court awarded Chirwa, who has been fighting the matter since 2013, the full balance of his contract payments, plus interest.
The institution feels this was not handled well and laments the cash-outlay following the huge award.
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You are a senior consultant for the institution and you have been requested to give advice on how the company can avoid such expenses at both commercial and Human Resource level in future.
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