In Eritrea, the labor law stipulates a tiered notice period system for employment termination. The required notice period depends on the employee's length of service.

Notice Period Based on Length of Service

• Less Than One Year: Employees with service under one year are entitled to a notice period of seven days.
• One to Two Years: For those who have completed between one and two years of service, a fourteen days' notice is required.
• Two to Five Years: The notice period increases to twenty-one days for employees with over two years but less than five years of service.
• More Than Five Years: Employees with more than five years of service are entitled to the longest notice period of thirty days.

Important Points to Note

• Unless a different notice period is stipulated within the employment contract, the legal minimums outlined above apply.
• The notice period applies to both the employer and the employee initiating termination.
• Instead of providing notice, the employer can choose to pay the employee an amount equivalent to their wages during the notice period.

In Eritrea, employees who have completed at least one year of service are entitled to severance pay upon termination of employment. The calculation of this severance pay is determined by the Labour Proclamation of Eritrea.

Calculation of Severance Pay

The severance pay entitlement is calculated as follows:

• For the first five years of service, employees receive two weeks' wages for each year.
• From the sixth to the tenth year of service, employees receive three weeks' wages for each year.
• For each year of service beyond the tenth year, employees receive four weeks' wages.

Important Notes

• The calculation of severance pay is based on the employee's last wage earned at the time of termination.
• Severance pay is mandatory, regardless of the reason for termination.

Example

For instance, an employee with 8 years of service would receive the following severance pay:

• For the first five years: 2 weeks' wages x 5 years = 10 weeks' wages
• For the sixth to eighth year: 3 weeks' wages x 3 years = 9 weeks' wages
• Therefore, the total severance pay would be: 19 weeks' wages.

In Eritrea, the Labour Proclamation outlines the procedures and requirements for terminating employment. There are several key aspects to consider.

Types of Termination

Termination can be initiated by either the employer or the employee.

• Termination by Employer:
  • With Cause ("Legitimate Grounds"): Specific grounds for termination with cause include serious misconduct, incapacity, and repeated absence from work.
  • Without Cause: The employer can terminate employment without cause, but must provide notice or compensation in lieu of notice.
• Termination by Employee:
  • Resignation: Employees can resign with the required notice period. There is no legal obligation for employees to provide reasons for resignation.
  • Constructive Dismissal: If the employer creates intolerable working conditions that force the employee to leave, it may be considered constructive dismissal. In such cases, the employee might be entitled to the same compensation as an unjustified dismissal by the employer.

Process and Documentation

The termination process requires certain documentation and steps.

• Written Notice: Termination initiated by either party should be communicated in writing. The notice should clearly state the reasons for termination and the effective date.
• Severance Pay: When applicable, the employer must provide severance pay, usually at the time of termination.

The Labour Proclamation of Eritrea No. 118 of 2001 is the key labor law reference for these procedures.