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Nauru

Termination and Severance Policies

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

Notice period

In Nauru, the legal requirements for notice periods during employment termination are dependent on the employee's status and the reason for termination. These requirements are outlined in the Republic of Nauru Public Service Bill 2016.

Probationary Employees

Probationary employees who are resigning are required to provide at least 2 weeks' written notice before the resignation takes effect. The Chief Secretary has the authority to approve a shorter notice period. If the employer terminates a probationary employee's contract, the employee must be given at least one week's written notice.

Permanent Employees (Beyond Probation)

Permanent employees who are resigning are required to provide at least 4 weeks' written notice before the resignation takes effect. The Chief Secretary also has the authority to approve a shorter notice period for these employees. In cases of termination by the employer (except for medical retirement), permanent employees are entitled to at least 4 weeks' written notice.

It's important to note that the Public Service Bill applies specifically to government employees. The provisions for employment termination in the private sector might differ. For further details, it is recommended to consult the relevant employment contract or seek guidance from the Nauru Department of Labour.

Severance pay

In Nauru, the Republic of Nauru Public Service Bill 2016 outlines the severance pay entitlements.

Eligibility

Permanent employees whose positions are declared redundant are entitled to severance pay according to Clause 102 of the bill.

Calculation

The severance pay amount is equivalent to the employee's salary over a 12-week period. This payment is made on or before the employee's last day of service as per Clause 102.

Additional Entitlements

Any outstanding entitlements owed to the employee, such as unused annual leave, must also be paid out upon termination according to Clause 103.

Limitations

Employees terminated due to misconduct are not entitled to severance pay.

Termination process

The termination process of employees in Nauru is governed by the Republic of Nauru Public Service Bill 2016. This process can be broken down into different types of termination and the procedure that must be followed.

Types of Termination

There are several ways in which an employment contract can be terminated:

  • Resignation: An employee can voluntarily terminate their employment by providing the required notice period as stipulated in their employment contract or as per Clause 83 of the Public Service Bill.

  • Termination by Employer: The employer may terminate the employment of an employee due to reasons such as redundancy, misconduct, or medical retirement.

Termination Procedure

The termination procedure involves several steps:

  1. Written Notice: The employer must provide a written notice of termination to the employee, stating the reasons for dismissal and the effective date. This is as per Clause 100 of the Public Service Bill. The required notice period varies depending on the employee's length of service and reason for termination.

  2. Reason for Termination: Employers must have a valid reason for termination. These can include:

    • Redundancy: The employee's position is no longer required. This is as per Clause 95 of the Public Service Bill.
    • Misconduct: The employee has engaged in serious misconduct or breaches of the employment contract. Clause 97 of the Public Service Bill details various types of offenses.
    • Medical Retirement: The employee can no longer perform their duties due to health reasons. This is as per Clause 94 of the Public Service Bill.
  3. Appeal Rights: Employees dismissed for reasons other than medical retirement or voluntary resignation have the right to appeal against the termination decision. This is as per Clause 106 of the Public Service Bill. Appeals must be submitted within 21 days of receiving the termination notice.

It's important to note that the provisions outlined above predominantly address termination within the public service sector. Private sector termination procedures might differ, and it is advisable to consult the relevant employment contract or seek guidance from the Nauru Department of Labour for further clarification.

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