Mastermind Tobacco has notified over 1,000 employees that their employment contracts have been automatically terminated after the company was placed under administration last week, according to a letter obtained by Sharp Daily on Monday.
The December 18 letter signed by joint administrator P.V. R. Rao states that on December 14, Mastermind Tobacco was put under administration by I&M Bank, which appointed Rao and Swaroop Rao Ronangipalli as joint administrators.
“We hereby notify all employees that on the placement of the Company under administration, all existing contracts of employment stand automatically terminated, in accordance with the Provisions of Law,” the letter says.
Mastermind Tobacco has a presence in eight African countries and is involved in tobacco growing, manufacturing and cigarette marketing, according to its website. Its flagship cigarette brand, Supermatch, is marketed across East, Central and Southern Africa.
Rao wrote that employees interested in continuing work with Mastermind Tobacco must reapply, and any reemployment would be “subject to Joint Administrators’ approval and in accordance with the newly negotiated terms and conditions.”
The letter says reemployment, if approved, would depend on whether operations at financially viable levels can continue. It also made clear reemployment is not guaranteed.
“Any employee, who is not reemployed, in writing, ceases to be the employee of the Company with effect from the date of appointment of the Joint Administrators,” Rao wrote.
In a separate legal notice, joint administrator Swaroop Rao Ponangipalli said Mastermind Tobacco had been placed under administration effective December 14. The notice directed anyone with a claim against the company to submit it in writing by January 15.
