This article discusses the problems surrounding the double payment of a severance allowance and private pension benefits in Malawi. It starts by discussing the case law developments following the enactment of the Employment Act 2000 and its subsequent amendments, which were repeatedly struck down by the courts. The article seeks to demonstrate the context which led to major pension and employment reforms in 2011 in the form of the Pension Act and Employment Amendment Act, which were concurrently enacted in 2011 to specifically resolve the above problem. It examines the effects of these legislative reforms on the relevant case law. The article argues that the legal position that prevailed since 2000, when the Employment Act was enacted, no longer exists following the enactment of the Pension Act and the Employment Amendment Act.