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Samoa

Termination and Severance Policies

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

Notice period

In Samoa, the Labour and Employment Relations Act 2013 (LERA) outlines the notice periods for employment termination. These periods apply to both employer and employee when terminating an employment contract and are based on the employee's length of service.

Minimum Notice Periods

The LERA specifies the following minimum notice periods:

  • Less than three months of service: No notice period is required.
  • Three months to one year of service: One week notice.
  • One year to four years of service: Two weeks notice.
  • Four years to seven years of service: Three weeks notice.
  • Seven years to ten years of service: Four weeks notice.
  • Ten years to thirteen years of service: Five weeks notice.
  • Thirteen years to sixteen years of service: Six weeks notice.
  • Sixteen years to nineteen years of service: Seven weeks notice.
  • More than nineteen years of service: Eight weeks notice.

Exceptions to Minimum Notice Periods

There are exceptions to these minimum notice periods:

  • Summary Dismissal: In cases of serious or gross misconduct by the employee, the employer may terminate employment immediately without notice, following specific disciplinary procedures outlined in the LERA.
  • Payment in Lieu of Notice: An employer or employee may choose to pay or receive a sum equivalent to the applicable notice period instead of working or providing the notice.

Importance of Employment Contracts and Collective Agreements

While the LERA outlines minimums, specific terms outlined in an employee's contract or a relevant collective bargaining agreement may provide for longer notice periods. These contractual terms take precedence over the LERA's minimums.

Severance pay

In Samoa, there is no general statutory requirement for severance pay across all industries. Instead, severance pay entitlements are typically based on provisions within employment contracts or through relevant collective bargaining agreements.

Situations Where Severance Pay May Apply

Severance pay may apply in the following situations:

  • Contractual Provisions: Employment contracts often include clauses outlining severance pay under specific termination circumstances such as redundancy or negotiated termination agreement.
  • Collective Bargaining Agreements: Certain industries or sectors might have collective agreements that mandate severance pay provisions for their employees.
  • Redundancy: In situations of redundancy, where the employee's job is no longer needed, severance pay might be negotiated or stipulated as part of employment contracts or collective agreements.

Calculating Severance Pay

The calculation method for severance pay in Samoa is not standardized. It might be determined in the following ways:

  • Based on Contractual Terms: Severance pay amounts and calculation methods are typically outlined in the employment contract.
  • Collective Agreements: Relevant collective agreements would stipulate any industry-specific calculations for severance pay.
  • Negotiation: If severance pay is not explicitly stated in a contract or collective agreement, it might be subject to negotiation between employer and employee during termination.

Important Considerations

Severance pay, when included in contracts, is typically calculated based on length of service and salary levels. While there's no general legal requirement, employers may consider offering severance pay to maintain positive employee relations, especially in redundancy situations.

Need for Clarity

Employees in Samoa should carefully review their employment contracts and any applicable collective bargaining agreements to understand their specific severance pay entitlements. In the absence of clear provisions, consulting with an employment law specialist would be beneficial.

Termination process

In Samoa, understanding the different types of employment contracts is crucial as they impact termination procedures. There are two main types of contracts: Fixed-Term Contracts, which have predetermined end dates and termination generally occurs automatically upon the expiry of the contract, and Indefinite-Term Contracts, which have no fixed end date and termination requires specific procedures.

Grounds for Termination

The Labour and Employment Relations Act 2013 ("LERA") outlines permissible reasons for terminating an employment contract. These include termination by mutual consent where both employer and employee agree to terminate the employment relationship, redundancy where the employer eliminates a position due to economic or operational reasons, summary dismissal for misconduct which is termination without notice for serious misconduct such as theft or violence, and termination with notice for reasons other than misconduct like poor performance or restructuring.

Termination Procedure

The termination procedure involves a written notice where the employer must provide a written termination letter clearly stating the date of termination and reason for termination. The employee should have a reasonable opportunity to respond to the termination notice and make representations. If the termination is due to alleged misconduct, a fair investigation is required.

Unfair Dismissal

Employees may challenge a termination if they believe it was unfair or unjustified. Disputes can be referred to the Ministry of Commerce, Industry, and Labour (MCIL) for resolution.

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