Notice and Severance
Notice Requirement
Fixed-term contracts in Botswana end when the task is completed or the contract period expires, while indefinite contracts require notice based on service length. Termination without notice is allowed for serious misconduct, unfair treatment, or job changes, with the option to compensate in lieu of notice.
A contract of employment (for a specified task) is terminated when the work specified in the contract is completed or the period of time for which the contract was made has expired. An indefinite term employment contract is deemed to run until lawfully terminated.
An indefinite term employment contract may be terminated by either employer or employee where the wages are payable for a period not exceeding a day, at the close of any day's work without notice. Where the wages are payable in respect of any period exceeding a day, the employment contract may be terminated at any time as long as notice has been given to the other party. Where the wages are payable for a period exceeding one day but less than a week, then notice must be at least one day. Where the wages are payable for period more than one week but less than two weeks but the employee has been in continuous service for 2-5 years, then the minimum length of notice is to be two weeks. Where the wages are payable in respect for a period exceeding one week but not more than a month and the employee has been in continuous employment for 5-10 years, then the minimum length of the notice is to be one month. Where wages are payable in respect for a period exceeding a day and the employee has been in continuous employment for 10 years or more, the minimum length of notice is to be six weeks.
The employer can terminate the employment contract without giving notice of his intention to do so or making any payment where the employee is guilty of serious misconduct during his employment.
An employee whose contract of employment is for an indefinite term or whose contract is for a specific task can terminate the contract of employment without giving notice of his intention to do so or making any payment on the basis that the nature of work is different than for which he was engaged for, his employment requires change in residence which is not stated in the employment contract, being transferred to lower grade work, bad treatment by employer or employer’s representative, or possibility of violence or disease resulting from employment which was not stated in the employment contract.
There is a possibility of paying compensation in lieu of notice. Either party may terminate an indefinite-term contract by paying the other party the wages that would have accrued to the worker during the minimum legal notice period. Where such notice has already been given, the employment contract can be terminated without waiting for the expiry of the period of notice, by paying to the other party a sum equal to the amount of basic pay which would otherwise have accrued to the employee during the balance of the period of notice.
Source: §17, 18, 19 & 26 of the Employment Act, 1982 (Cap. 47:01)
Severance Pay
In Botswana, severance pay is granted to employees with at least five years of service, calculated based on their length of employment. It is not applicable to those receiving pensions or gratuities, and all dues must be settled promptly upon termination.
Severance pay is regulated under the Employment Act, 1982 (Cap. 47:01). Severance pay is payable only if the worker has worked at least 60 months (5 years) with the same employer.
The amount of severance pay depends on the length of service. During the first 60 months of employment, the severance is payable at the rate of one day’s basic wage for each month of service. The severance pay is raised to two days’ basic wage for each month of continuous employment beyond 60 months. An employee with 10 years (120 months) of employment with an employer shall be entitled to severance pay of 180 days of basic wage as follows: 1. 60 days’ basic wage for the first 60 months of employment (12 days per year); 2. 120 days' basic wage for the next 60 months of employment (24 days per year)
Severance pay is payable only where the worker is not registered with the social insurance system. Employees receiving pension or gratuity or both benefits are not eligible for severance payment.
On termination of employment, all dues must be cleared on the same day, or where it is not practical, as soon as reasonably practicable to do so.
Source: §27 & 76-78 of the Employment Act, 1982 (Cap. 47:01); §3 of the Employment (Miscellaneous Provisions) Regulations, 1984