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Wallis and Futuna

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Wallis and Futuna

Notice period

In Wallis and Futuna, the labor law framework stipulates specific notice periods for employment termination. These periods vary depending on the type of termination and the employee's length of service.

Legal Framework

The main legal reference for notice periods in Wallis and Futuna is the Code du travail de Wallis et Futuna (Labor Code of Wallis and Futuna).

Notice Periods by Termination Type

The Labor Code sets different notice periods for termination initiated by the employer or the employee:

  • Employer-Initiated Termination:

    • Employees with less than one year of service: No minimum notice period required.
    • Employees with at least one year of service: One month's notice.
  • Employee-Initiated Termination:

    • Employees are required to provide written notice to the employer. The notice period depends on the employee's length of service:
      • Less than one month of service: No minimum notice required.
      • One month to three months of service: Notice period equals half the length of employment.
      • More than three months of service: One month's notice.

Important Notes

  • The notice period can be extended through collective bargaining agreements that supersede the Labor Code's minimums.
  • The notice period runs from the day the written notice is received by the other party.
  • During the notice period, both employer and employee are obligated to fulfill their contractual duties (unless there are serious grounds for dismissal).

Severance pay

In Wallis and Futuna, severance pay entitlements are primarily governed by the Code du travail de Wallis et Futuna (Labor Code of Wallis and Futuna).

Article L.1234-9 of the Code du travail de Wallis et Futuna outlines the conditions under which severance pay (indemnité de licenciement) is due to an employee upon termination.

Severance Pay Eligibility

Severance pay is mandatory in Wallis and Futuna under certain conditions. The termination must be initiated by the employer for reasons unrelated to serious misconduct by the employee. Additionally, the employee must have completed at least two years of continuous service with the employer.

Severance Pay Calculation

The severance pay amount is calculated based on the employee's average monthly gross salary, including any bonuses and benefits, earned during the last twelve months (or last three months, if more favorable). For employees with 2-10 years of service, the severance pay is 1/10 of a month's salary per year of service. For those with over 10 years of service, it's 1/10 of a month's salary per year of service for the first 10 years, then 1/15 for each additional year.

Exceptions

Provisions in collective bargaining agreements may provide for more favorable severance pay terms than the statutory minimums. However, employees terminated due to serious misconduct are generally not entitled to severance pay.

Payment of Severance Pay

Employers are obliged to pay the calculated severance pay along with the employee's final wages and any other outstanding balances.

Termination process

Terminating an employee in Wallis and Futuna requires employers to comply with the Labor Code of Wallis and Futuna (Code du travail de Wallis et Futuna).

Types of Termination

There are several types of termination:

  • Termination by Employer: This is an employer-initiated termination for reasons other than serious misconduct.
  • Termination by Employer (for serious misconduct): This is dismissal due to significant breaches of the employment contract, misconduct, or gross negligence by the employee.
  • Resignation by Employee: This is when the employee voluntarily chooses to terminate their employment.
  • End of Fixed-Term Contract: This is when employment ends naturally upon expiration of a fixed-term contract (unless renewed).

Steps for Employer-Initiated Termination

The process for employer-initiated termination involves several steps:

  1. Documentation: Employers should maintain thorough records of any performance issues, disciplinary actions, or grounds for termination. This provides protection in case of a dispute.
  2. Notice of Termination: Employers should provide the employee with written notice of termination, clearly stating the reasons for dismissal.
  3. Pre-Dismissal Hearing (optional): While not mandatory, it's good practice to offer a meeting where the employee can respond to the allegations.
  4. Final Pay and Documents: Employers should provide the employee their final paycheck, including any accrued wages and unused vacation time. They should also issue a certificate of employment and any other necessary documents.

Important Considerations

There are several important considerations to keep in mind:

  • Collective Bargaining Agreements: Provisions in collective agreements may modify certain aspects of the termination process.
  • Discrimination: Terminations based on discriminatory reasons related to an employee's protected characteristics (such as race, religion, gender, etc.) are illegal.
  • Consultation: Employers may want to consult legal counsel, especially in complex termination scenarios due to potential disputes.
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