Notice period
In the Faroe Islands, the minimum notice periods required for employment termination are determined by the employee's seniority and type of employment contract.
Minimum Notice Periods
For hourly workers who've been employed for at least six months, the minimum notice period is at least seven working days.
Employees receiving regular monthly wages under the terms of the Faroese General Workers' Union (Føroya Arbeiðarafelag) Agreement, with a tenure exceeding six months but less than two years, are entitled to a minimum notice period of two months.
For salaried employees (e.g., those covered by the Office and Retail Workers' Union (S&K) Agreement) who have been employed for a period between six months and three years (excluding temporary or probationary periods), the minimum notice period is three months.
It's important to note that the notice period applies to both employer and employee terminations.
Written Notice Requirement
The termination notice, regardless of whether it's initiated by the employer or the employee, must be presented in writing.
Severance pay
In the Faroe Islands, there is no legal requirement for employers to provide severance pay upon termination of employment. However, there are certain exceptions and considerations that may apply.
Exceptions and Considerations
Collective Agreements: Despite the lack of legal obligation, some collective agreements, negotiated between unions and employers, may include provisions for severance pay for employees covered under these agreements.
Individual Contracts: Severance pay can also be negotiated as a specific clause within an individual employment contract.
Wrongful Termination: If an employee's dismissal is deemed wrongful or unjustified by a court, the court may award compensation in lieu of severance pay.
To determine if you are covered by a collective agreement that potentially includes severance provisions, consult the relevant trade union or employer association. Additionally, review your individual employment contract carefully for any clauses related to severance pay.
Termination process
In the Faroe Islands, the termination process of employees can be initiated by employers either with cause or without cause. Termination with cause can be due to serious misconduct, breach of contract, or inability to perform job duties. On the other hand, termination without cause doesn't require a specific reason, but employers must adhere to the legally mandated notice periods.
Right to Request Written Grounds for Dismissal
Employees who have been with the company for at least nine months have the right to request written grounds for their dismissal. This is a provision under agreements similar to the Faroese General Workers' Union agreement.
Protection Against Unfair Dismissal
The Faroe Islands has laws that protect employees from unfair dismissal. For instance, dismissal of an employee due to pregnancy is considered unlawful. The law also prohibits discrimination based on factors like gender, race, religion, etc. Termination on these grounds would be considered unlawful.
Important Considerations
When terminating an employee, it's important to consult relevant collective agreements or individual employment contracts. These may contain additional provisions or requirements related to termination processes. If there are concerns about the legality or fairness of a termination, it is advisable to seek legal counsel from a qualified employment lawyer in the Faroe Islands.