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Antigua and Barbuda

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Antigua and Barbuda

Notice period

In Antigua and Barbuda, the Labour Code outlines the legal requirements for notice periods during employment termination.

Notice Period for Employers

The required notice period for employers depends on the employee's probationary status:

  • Employees Outside Probation: Employers must provide written notice to employees who have completed their probation period. The notice period should be at least equivalent to the interval between the employee's paydays.
  • Employees Within Probation: For employees within their probation period, a shorter notice period of at least 24 hours is required.

It's important to note that these are minimum notice periods. Employers can offer a longer notice period if they choose to do so.

Maximum Notice Period

There's a maximum limit on the notice period an employer needs to provide. In no case can the notice period exceed 30 days, unless a longer period is explicitly specified in the employment contract.

Additional Considerations

  • Reason for Termination: The employer is required to furnish the employee with a written statement explaining the reason for termination within seven days of the termination or notice.

Severance pay

In Antigua and Barbuda, employees who have been employed for an aggregate period exceeding one year with their current employer and any predecessor employers are entitled to severance pay. This is applicable in cases of redundancy (job elimination) or sale or other disposal of the business to a successor employer.

Severance pay is calculated based on the employee's latest basic wage, with one day's pay for each month of employment (or major fraction thereof). For instance, an employee with 5 years of service and a basic wage of $2,000 XCD per month would be entitled to a severance pay of $4,000 XCD.

Important Provisions of the Antigua and Barbuda Labour Code

The Antigua and Barbuda Labour Code has specific provisions regarding severance pay. According to section C40, an employee whose terms of employment with an employer and his predecessors has exceeded at least a period aggregating one year, shall be entitled to severance pay. Section C41 states that the amount of severance pay shall be at the rate of at least one day's pay for each month of employment or major fraction thereof.

Limitations

However, it's important to note that severance pay is not required if termination was due to the employee's gross misconduct or other justifiable reasons explicitly stated in the Labour Code.

Termination process

In Antigua and Barbuda, employers are required to adhere to the termination procedures outlined in the Labour Code to ensure compliance and avoid potential legal disputes.

Grounds for Termination

There are two primary grounds for termination:

  1. Termination with Cause: An employer can terminate an employee's employment with immediate effect for reasons such as gross misconduct, willful disobedience, habitual neglect of duties, or other justifiable reasons as defined in the Labour Code.

  2. Termination without Cause (Redundancy): An employer can terminate an employee's employment due to redundancy or other business reasons beyond the employee's control.

Written Notice

Employers are required to provide a written notice of termination, stating the reasons for the termination and the effective date. If an employee requests in writing within 7 days of termination, the employer is obligated to provide a written statement outlining the grounds for termination.

Additional Considerations

There are additional considerations to keep in mind:

  • Right to Challenge: Employees have the right to challenge a termination they believe is unfair or unjustified under the Labour Code.

  • Collective Bargaining Agreements: Termination procedures may be modified or supplemented by collective bargaining agreements, where applicable.

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