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Kiribati

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Kiribati

Notice period

In Kiribati, the Employment and Industrial Relations Code 2015 (EIRC 2015) provides guidelines on notice periods for termination of employment contracts.

Minimum Notice Periods

According to the EIRC 2015, the minimum notice periods an employer must provide an employee before termination are based on the employee's length of service:

  • For up to 2 years of service, a minimum of two weeks' written notice is required.
  • For more than 2 years of service, a minimum of four weeks' written notice must be provided.

It's important to note that these are minimum requirements. An employment contract can stipulate a longer notice period, provided it applies fairly to both employer and employee.

Additional Considerations

There are also additional considerations to keep in mind:

  • The notice of termination must be provided in writing to the employee.
  • The employer must ensure the employee has a reasonable amount of time to find alternative employment after receiving the termination notice.

For the most current regulations and interpretations regarding notice periods in Kiribati, it's recommended to consult the Ministry of Employment and Labour Relations.

Severance pay

In Kiribati, the Employment and Industrial Relations Code of 2015 (EIRC 2015) is the primary legislation that governs severance pay.

Eligibility for Severance Pay

An employee is entitled to severance pay in Kiribati under the following conditions:

  • The employee's job has become genuinely redundant, leading to their termination.
  • The employee has completed at least one year of continuous service with the employer.

Calculation of Severance Pay

The calculation of severance pay in Kiribati is based on:

  • The number of years of continuous service, with the amount of severance pay increasing accordingly.
  • The employee's basic wage at the time of termination.

The specific formula for calculating severance pay is detailed in Section 100 of the EIRC 2015.

Procedure for Termination and Severance

The EIRC 2015 outlines the requirements for employers when terminating employment due to redundancy:

  • Employers must provide adequate notice of termination or pay in lieu of notice.
  • Employers should consult with affected employees about the redundancy process.
  • Severance pay must be paid at the time of termination.

It's important to note that the severance pay provisions in the EIRC 2015 represent minimum entitlements. Some employment contracts or collective agreements may provide for more generous severance pay arrangements.

Termination process

In Kiribati, employment can be terminated in several ways. These include mutual agreement, where the employer and employee mutually agree to end the employment relationship. Another way is the expiry of a fixed-term contract, which ends on its specified end date. Lastly, an employer-initiated termination can occur for reasons such as redundancy, misconduct, or poor performance.

Termination Procedures

Disciplinary Procedures

For termination due to misconduct or poor performance, employers must follow fair disciplinary procedures. This includes thoroughly investigating allegations, providing the employee a chance to explain themselves and address the allegations, keeping clear records of the process, and in some cases, the employee may have a right to appeal the termination decision.

Redundancy Procedures

When termination is due to redundancy, the EIRC requires employers to consult with employees to discuss the reasons for redundancy and potential alternatives. They must also explore redeployment options and consider whether the employee can be redeployed to another suitable role. Furthermore, they must use fair criteria if it's necessary to select employees for redundancy.

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