AirNam liquidators win appeal about pay-outs to airline's ex-employees
The Supreme Court of Namibia has ruled in favor of Air Namibia's liquidators regarding the calculation of severance pay for former employees. The court determined that remuneration for payout purposes should only include basic salary, housing, and transport allowances, excluding pension and medical contributions.
Why it matters
This legal decision provides finality to the liquidation process of the national airline and clarifies the financial obligations owed to former staff.
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.
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