Learn about the legal processes for employee termination and severance in Dominica
In Dominica, the legal requirements for notice periods during employment termination are outlined in the Labour Act No. 2 of 1967. The notice period an employer or employee must provide depends on the employee's payment schedule.
For employees paid on a monthly basis, the notice period is one month before the intended termination date. If an employee is paid on a basis shorter than a month (e.g., weekly, bi-weekly), the notice period is one week before the intended termination date.
The notice period must end at the calendar month's conclusion. For instance, if an employer gives notice on November 15th to an employee paid monthly, the termination would occur on December 31st. Collective agreements may supersede the notice periods outlined in the Labour Act. It's crucial to consult the relevant collective agreement if applicable.
No specific notice period is required during the probationary period, as long as the probationary period is clearly defined in the employment contract.
In Dominica, severance pay is regulated by the Protection of Employment Act. This legislation outlines the conditions under which an employee is entitled to severance pay and how it is calculated.
Severance pay is typically applicable when an employer terminates the employment contract due to redundancy, which refers to economic or operational reasons. However, to be eligible for severance pay, employees must have at least one year of continuous service with the same employer.
The amount of severance pay an employee is entitled to depends on their length of service. For those with 1-5 years of service, they receive 2 weeks' wages for each year of service. Employees with 5-10 years of service receive 3 weeks' wages for each year of service. For those with over 10 years of service, they receive 4 weeks' wages for each year of service.
Redundancy, as defined by the Protection of Employment Act, is a situation where an employee's job is no longer necessary due to operational or economic reasons. To justify redundancy for the purpose of severance pay, an employer must demonstrate that the job has genuinely ceased to exist. Severance pay is generally not applicable for terminations due to reasons such as employee performance or misconduct. Additionally, some collective agreements may contain more favorable severance pay arrangements.
In Dominica, the termination of employees is regulated by various laws, including the Labour Act No. 2 of 1967 and the Protection of Employment Act. The process can be initiated by either the employer or the employee, or mutually agreed upon by both parties.
There are three main types of termination:
The process for employer-initiated termination involves several steps:
For employee-initiated termination, the following steps are required:
There are several important considerations to keep in mind during the termination process:
We're here to help you on your global hiring journey.