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Seychelles

Termination and Severance Policies

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

Notice period

In Seychelles, the notice period requirements during employment termination are dictated by the type of employment contract and the reason for termination.

Minimum Notice Periods

For standard contracts, if there is no specific notice period mentioned in the employment contract, the Employment Act mandates a minimum notice period of one month for both employers and employees intending to terminate the contract.

In the case of fixed-term contracts, if an employer decides not to renew the contract, they must provide one month's notice to the employee.

Employees on probation have a shorter notice period of seven days if their employer decides to terminate the contract.

Casual workers have the least notice period, with only one day required from either the employer or the employee for termination.

Additional Considerations

When a company goes through redundancy, specific procedures are required. The employer must notify the Chief Executive of the Ministry of Employment and Social Affairs 42 days before giving notice to the employee.

Pregnant women have extended notice periods. They are required to give their employer at least three months' notice before their expected date of confinement.

Severance pay

In Seychelles, severance pay is not a legal requirement for all employers. However, there are certain circumstances where it may apply.

Circumstances Where Severance Pay May Apply

  • Voluntary Resignation After Significant Service: If an employee voluntarily resigns after completing at least five years of continuous service under an indefinite contract, the employer may choose to offer them severance pay. The common practice is to offer five-sixths of one day's pay for each complete month of service, calculated based on the employee's last wage.

  • Contractual Obligations: If an employment contract includes a severance pay clause, the employer is legally obligated to honor those terms, regardless of the reason for termination.

Circumstances Where Severance Pay Does Not Apply

  • Termination Due to Misconduct: Employers can generally terminate an employee for gross misconduct without providing severance pay.

  • Resignation with Less Than Five Years of Service: Unless specified differently in a contract, employees who resign before completing five years of continuous service are typically not entitled to severance pay.

  • Termination by Mutual Agreement: If both the employer and employee agree to terminate the employment contract, severance pay obligations may be negotiated or waived as part of the agreement.

Severance pay in Seychelles remains a discretionary practice for most employers, unless a contract specifically guarantees it. It is advisable to refer to the individual employment contract for specific details.

Termination process

The termination process of employees in Seychelles involves a combination of legal requirements and best practices. Here's an outline of the key steps:

Issuing Notice

For termination with notice, the Employment Act mandates minimum notice periods. The termination notice must be given in writing and should include the reason for termination (if applicable), the effective termination date, and a statement of any outstanding entitlements such as accrued leave and final salary.

Termination without Notice (Summary Dismissal)

An employer can terminate employment without notice only for gross misconduct, as defined in the Employment Act. Examples include willful disobedience of lawful orders, theft, fraud, or dishonesty, habitual neglect of duties, and violence or abusive behavior. Even for gross misconduct, the employer should conduct a basic investigation and give the employee an opportunity to defend their actions before the final decision.

Redundancy Terminations

Before terminating employees for redundancy, employers must notify the Ministry of Employment and follow specific consultation procedures as outlined in the Industrial Relations guidelines.

Additional Considerations

Employers are legally required to provide a departing employee with a certificate of employment, detailing the dates of employment and the nature of the job. If an employee believes their termination was unfair, they can file a complaint with the Ministry of Employment and Social Affairs.

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