Learn about the legal processes for employee termination and severance in Algeria
In Algeria, labor law stipulates that employers must provide notice periods when terminating employment, unless the employee has committed serious misconduct. The duration of this notice period is determined by collective bargaining agreements and the employee's tenure.
Collective Bargaining Agreements and Minimum Notice Period
Collective agreements or industry conventions establish the minimum notice period. These agreements can set a standard notice period applicable to all companies within a specific industry or region. If no relevant collective agreement exists, the legal minimum notice period is unclear, with some sources suggesting a base period of six months, potentially extending to twelve months for highly skilled workers.
Tenure-Based Notice Period
In addition to the minimum set by collective agreements, Algerian law mandates an extra notice period based on the employee's length of service. Employers must provide an additional five days' notice for each year of service, capped at a maximum of 30 extra days. For example, an employee who has worked for a company for three years would be entitled to the minimum notice period established by collective agreements, plus fifteen additional days.
Employer Obligations During Notice Period
During the notice period, Algerian law grants dismissed employees specific rights. Employees have the right to two hours of paid leave per day to search for new employment. Employers can fulfill this obligation by providing a lump sum payment equivalent to the employee's regular wages during the notice period. Employers who fail to provide the legally mandated notice period or violate an employee's rights during this time may face legal repercussions.
In Algeria, labor law stipulates that employees are entitled to severance pay under certain conditions.
If an employee is dismissed due to downsizing for economic or structural reasons, the employer is legally required to provide severance pay. However, two conditions must be fulfilled:
The severance pay for redundancy is equivalent to three months' salary. This is calculated based on the average gross monthly wage the employee received in the twelve months prior to the termination of the employment relationship.
Employees dismissed for reasons other than redundancy are also entitled to severance pay, provided two conditions are met:
In these cases, the severance pay is calculated at a rate of fifteen days' wages for each year of service. The calculation is based on the employee's last received salary.
Algerian labor law provides a structured process for terminating employment, which is designed to protect both employers and employees. The procedure varies depending on the reasons for termination.
Employers can terminate an employee's contract immediately, without any notice period or severance pay, if the employee commits a serious fault as defined by Algerian law (Article 73 of Law No. 90-11). Serious misconduct typically includes:
When terminating an employee for reasons other than serious misconduct, employers must adhere to the following steps:
Employers can terminate employees during the probationary period with shorter notice. The typical probation period length is six months (twelve months for highly skilled positions), but a collective agreement can set a different limit.
Redundancies follow a more complex procedure aimed at minimizing job losses and ensuring fair treatment of employees:
Employers who fail to comply with any of these procedural steps for various types of termination risk legal challenges and potentially having the dismissal ruled 'abusive'.
We're here to help you on your global hiring journey.