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Dominica

Termination and Severance Policies

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

Notice period

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.

Notice Period Calculation

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.

Important Considerations

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.

Probationary Period

No specific notice period is required during the probationary period, as long as the probationary period is clearly defined in the employment contract.

Severance pay

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.

Conditions for Severance Pay

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.

Severance Pay Calculation

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.

Important Considerations

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.

Termination process

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.

Types of Termination

There are three main types of termination:

  • Employer-Initiated Termination (Dismissal): This occurs when the employer ends the employment relationship. Reasons for this can include redundancy due to operational or economic reasons, or misconduct or poor performance by the employee.
  • Employee-Initiated Termination (Resignation): In this case, the employee ends the employment relationship by submitting a resignation notice.
  • Mutually Agreed Termination: Here, both the employer and employee agree to end the employment relationship.

Employer-Initiated Termination (Dismissal)

The process for employer-initiated termination involves several steps:

  1. Valid Reason: The employer must have a valid reason for dismissal, such as redundancy, misconduct, or poor performance.
  2. Written Notice: The termination must be communicated in writing, stating the grounds for dismissal.

Employee-Initiated Termination (Resignation)

For employee-initiated termination, the following steps are required:

  1. Written Notice: The employee must submit a written resignation letter.

Important Considerations

There are several important considerations to keep in mind during the termination process:

  • Collective Agreements: Any relevant collective agreements may stipulate additional requirements or procedures for termination.
  • Special Protections: Certain categories of employees, such as those on parental leave or pregnant employees, may have additional protections.
  • Dispute Resolution: Employees who believe they have been wrongfully dismissed can file a claim for unfair dismissal.
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