Terminating an employee in Cabo Verde requires careful adherence to local labor laws to avoid potential legal challenges. Cabo Verdean labor law distinguishes between terminations with and without cause, each with specific requirements for notice, severance, and procedure. Understanding these regulations is crucial for employers to ensure compliance and minimize risks when ending an employment relationship.
Navigating the termination process in Cabo Verde involves several key considerations. These include determining the appropriate notice period based on the employee's category and tenure, calculating severance pay in accordance with legal formulas, establishing valid grounds for termination, following required procedures, and respecting employee protections against unfair dismissal. Failure to comply with these requirements can lead to costly disputes and legal liabilities.
Notice Period Requirements
The required notice period in Cabo Verde depends on the type of employment contract and the employee's length of service. Here's a breakdown of the minimum notice periods:
| Employment Contract Type | Length of Service | Notice Period |
|---|---|---|
| Fixed-Term | Less than 6 months | 7 days |
| Fixed-Term | 6 months to 1 year | 15 days |
| Fixed-Term | More than 1 year | 30 days |
| Indefinite-Term | Less than 1 year | 30 days |
| Indefinite-Term | 1 year to 5 years | 60 days |
| Indefinite-Term | More than 5 years | 90 days |
It's important to note that collective bargaining agreements or individual employment contracts may stipulate longer notice periods than the statutory minimums.
Severance Pay Calculations and Entitlements
Severance pay is generally required for terminations without just cause under indefinite-term contracts. The calculation is based on the employee's salary and length of service.
The general formula for calculating severance pay is:
Severance Pay = (Monthly Salary) x (Years of Service) x (Accrual Rate)
The accrual rate varies depending on the reason for termination and the applicable collective bargaining agreement. Typically, the accrual rate is between 0.5 and 1 month's salary per year of service.
Employees are not entitled to severance pay if they are terminated for just cause, resign voluntarily, or upon the expiry of a fixed-term contract.
Grounds for Termination
Termination in Cabo Verde can be either with or without just cause.
Termination with Just Cause: Just cause refers to serious misconduct by the employee that makes the continuation of the employment relationship untenable. Examples include:
- Theft or fraud
- Insubordination
- Repeated unjustified absences
- Violation of company rules
- Physical assault
Termination without Just Cause: This occurs when the employer terminates the employment contract for reasons not attributable to the employee's misconduct. This may include:
- Economic reasons (e.g., redundancy, restructuring)
- Technological reasons
- Organizational reasons
Procedural Requirements for Lawful Termination
To ensure a lawful termination, employers must follow specific procedures:
- Written Notice: Provide the employee with written notice of termination, stating the grounds for termination (if applicable) and the effective date.
- Consultation (if applicable): In cases of termination for economic, technological, or organizational reasons, consult with employee representatives or unions, if present.
- Evidence of Just Cause (if applicable): If terminating for just cause, gather and document evidence supporting the allegations of misconduct.
- Final Payment: Pay all outstanding wages, accrued vacation time, and severance pay (if applicable) on or before the termination date.
- Certificate of Employment: Provide the employee with a certificate of employment stating the dates of employment and the position held.
Employee Protections Against Wrongful Dismissal
Cabo Verdean labor law provides several protections for employees against wrongful dismissal. Employees who believe they have been unfairly terminated can file a claim with the labor court.
Potential remedies for wrongful dismissal include:
- Reinstatement to the former position
- Payment of back wages
- Compensation for damages
Employers should be prepared to demonstrate that the termination was justified and followed all legal requirements. Failure to do so can result in significant financial penalties and reputational damage.
