Learn about the legal processes for employee termination and severance in Palestine
In Palau, labor law stipulates specific notice periods for employment termination, with the required timeframe varying based on the type of employee and the reason for termination.
Government employees in Palau are required to give and receive a minimum of 60 days' written notice for the termination of the employment contract. This provision applies unless there are exceptional circumstances, in which case an appeal can be made to the President for a waiver of the notice period.
Non-resident workers who are terminated by their employer "for cause" (meaning with justification), are required by Palauan law to receive a minimum of 10 days' written notice before the termination becomes effective. This notice must be provided to the employee and the Division of Labor.
For a more comprehensive understanding of employment termination procedures and legalities in Palau, consulting with a local labor law expert is recommended.
Severance pay in Palau is not a mandatory entitlement across all industries under the standard labor laws. However, there are specific situations where severance pay may be required.
Government employees in Palau may be entitled to severance pay in specific termination scenarios.
Severance pay provisions may be explicitly outlined within an individual employment contract. These terms are legally binding if agreed upon by both the employer and employee. If a union represents a group of employees, a collective bargaining agreement may include provisions for severance pay.
While not mandated by broad labor laws, some situations where severance pay might typically be considered in Palau include:
Severance pay amounts in Palau are not standardized. When applicable, these factors often influence the calculation:
The termination process in Palau is governed by legal guidelines designed to protect both employees and employers.
There are several types of termination:
Certain procedures and documentation are required during the termination process:
Upon termination, employees are entitled to receive all outstanding wages, accrued vacation pay, and any other benefits owed to them according to their employment contract.
If an employee believes their termination was unjust, they may file a grievance with the Palau Division of Labor. The Division of Labor can assist in mediating disputes between employers and employees.
We're here to help you on your global hiring journey.