Notice and Severance
Notice Requirement
If an employer wants to terminate the employment contract of a worker (or vice versa), the period of notice is at least:
· One week for workers who have been employed for six months or less; · Two weeks for workers who have been employed for more than six months but less than one year; and · Four weeks for workers who have been employed for one year or more
Notice period for domestic and farm workers (with more than six months of employment) are four weeks. A collective agreement may allow a shorter notice period than what is required under the law. A collective agreement may allow the notice period of four weeks for workers employed for more than one year to be reduced to (not less than) two weeks.
No agreement can require an employee to give a longer notice period than the employer is required to provide. Termination notice must be in writing unless given by an illiterate employee. If the employee cannot understand the notice, the employer must explain it orally in a language they understand. An employer cannot issue a termination notice during an employee’s leave, and the notice period cannot run concurrently with any leave, except for sick leave.
An employer may choose to pay the employee the remuneration in lieu of notice. Additionally, if an employee resigns and gives notice, but the employer waives part of the notice period, the employer is still obligated to pay for the remaining notice period unless both parties agree otherwise.
Source: § 37-38 of the Basic Conditions of Employment Act, 1997 (last amended in 2020)
Severance Pay
The Basic Conditions of Employment Act provides for severance pay. A worker, who is dismissed for reasons based on the employer's operational requirements or whose contract of employment is terminated on account of insolvency, is entitled to the severance pay at the rate of one week's pay for each completed year of service. The amount of severance pay may be increased by mutual agreement between the employer and worker; this agreement prevails over the statutory minimum imposed by BCEA.
A worker who unreasonably refuses to accept the employer’s offer of alternative employment with that employer or any other employer is not entitled to severance pay. Payment of severance pay does not affect the rights of a worker to any other payable amount.
Employers must pay employees for unused paid time off, outstanding annual leave, and, if employed for over four months, accrued leave during an incomplete cycle—either one day’s pay per 17 days worked or an equivalent amount.
Source: §40 & 41 of the Basic Conditions of Employment Act, 1997 (last amended in 2020)