In Guyana, the Termination of Employment and Severance Pay Act outlines the legal requirements for notice periods during employment termination. The Act mandates minimum notice periods an employer must provide an employee upon termination, unless the termination falls under certain exceptions.

Minimum Notice Periods

The required notice period is determined by the employee's length of service:

• Two weeks' notice: Applies to employees who have been employed for less than one year.
• One month's notice: Applies to employees who have been employed for one year or more.

This minimum notice period applies to both the employer and the employee. If an employee decides to resign, they must also give their employer the same amount of notice as mandated for termination.

Exceptions to Notice Periods

The Act acknowledges situations where the notice period requirement may not apply. These exceptions include:

• Probationary Period: A probationary period of three months is standard in Guyana unless otherwise agreed upon in the employment contract. Employers or employees can terminate the contract during probation without notice.
• Summary Dismissal: The Act allows employers to summarily dismiss employees for serious misconduct without notice.

Additional Considerations

• Notice During Leave: Employers cannot give notice of termination during an employee's authorized leave period.

It's important to note that an employment contract can supersede the minimum notice periods outlined in the Act, provided the terms are more favorable to the employee.

In Guyana, severance or redundancy payments are a legal requirement for employees upon certain types of employment termination. The Termination of Employment and Severance Pay Act governs the calculation and eligibility of severance pay.

Eligibility for Severance Pay

Severance pay is mandatory when an employee meets the following conditions:

• The employee must have completed one year or more of continuous employment with the employer.
• Termination must be without just cause on the employer's part, or due to redundancy.

Calculation of Severance Pay

Employers must calculate severance based on these rules:

• For the first five years of service, one week's wages for each completed year of service.
• For years six to ten, two weeks' wages for each completed year of service.
• From the eleventh year onwards, three weeks' wages for each completed year of service, up to a maximum of fifty-two weeks.

Ineligibility for Severance Pay

There are exceptions where severance pay is not required:

• If an employee is terminated due to serious misconduct, they forfeit severance pay rights.
• If the employment contract includes provisions for compensation in lieu of severance pay that are equal to or more favorable than severance requirements, the contractual terms take precedence.

Additional Information

• An employee does not forfeit their right to severance if made redundant during a period of authorized leave.

It's essential for employers and employees to fully understand severance pay provisions under Guyanese labor laws. Consulting with the Ministry of Labour or legal counsel in labor law is advisable for the most up-to-date and case-specific guidance.

In Guyana, the termination process for employees is governed by specific requirements as outlined in the Termination of Employment and Severance Pay Act.

Types of Termination

There are two main types of termination:

• Termination with Notice: This can be initiated by both employers and employees under the following circumstances:
  • Mutual consent: When both parties agree to end the employment relationship amicably.
  • Redundancy: When the employer eliminates a position due to economic or business reasons.
  • Good and Sufficient Cause: When there is a valid, non-discriminatory reason for termination, supported by appropriate documentation of cause.
• Termination Without Notice (Summary Dismissal): This applies in cases of serious employee misconduct, allowing the employer to immediately terminate employment.

General Termination Procedure (With Notice)

The general termination procedure with notice involves the following steps:

1. Issuing Notice: The party terminating the contract must provide a written notice of termination. The notice must adhere to the minimum notice period outlined in the Act or the employment contract if a longer period is specified.
2. Work During Notice Period: The employee is usually expected to continue working during the notice period.
3. Final Payments: Upon the termination date, the employer must issue all outstanding wages.

Additional Notes

• Disciplinary Procedures: Before termination for less severe misconduct, employers should follow a disciplinary process. This may involve warnings, performance reviews, and documentation of infractions in line with the Act.
• Employee Rights: Employees have the right to challenge an unfair dismissal through the Chief Labour Officer or the High Court.

Importance of Legal Compliance

It is crucial for both employees and employers in Guyana to adhere to the legal provisions of the Termination of Employment and Severance Pay Act. Companies should implement clear termination policies that align with the law to avoid potential grievances and legal disputes.