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Mauritius

Termination and Severance Policies

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

Notice period

In Mauritius, the Workers' Rights Act 2019 (WRA 2019) governs the legal requirements for notice periods during employment termination.

H3 Minimum Notice Period

The WRA 2019 stipulates that the minimum notice period an employer must provide to an employee is 30 days. This applies unless a longer notice period is specified within the employment contract.

H3 Exceptions to the Minimum Notice Period

There are two exceptions to the 30-day minimum notice period:

  • If an employee has been continuously employed with the same employer for at least three years, they are entitled to a three-month notice period before termination.
  • For employees whose salaries are paid on a monthly or fortnightly basis, the employer must provide notice at least 14 days before the end of a calendar month. For employees receiving salaries at intervals shorter than 14 days, the notice period must be at least equal to their pay interval.

The notice period can be communicated verbally or in writing, provided it's delivered within a reasonable timeframe.

H3 Additional Considerations

When an employer intends to make redundancies involving at least 10 employees, they must provide written notice to the Minister of Labour, outlining the reasons for the reduction, at least 120 days before the termination date. The notice must also be submitted to the Termination of Contracts of Service Board, which will make a final decision.

In cases of serious employee misconduct, employers are not obligated to provide a notice period before termination.

Severance pay

In Mauritius, severance pay regulations provide financial compensation to employees whose employment is terminated under certain conditions. It's important for both employees and employers to understand these entitlements.

Eligibility for Severance Pay

According to the Workers' Rights Act 2019 (WRA 2019), employees in Mauritius are eligible for severance pay if they meet the following criteria:

  • They must have been in continuous employment with the same employer for at least 12 months. This includes employees employed on an indefinite contract or under one or more fixed-term contracts.
  • The termination must be initiated by the employer, except in cases of retirement or gross misconduct by the employee.

Calculation of Severance Pay

The WRA 2019 outlines the method for calculating severance pay:

  • Severance pay is based on the employee's remuneration, which includes all emoluments, bonuses, overtime payments, and certain allowances.
  • The entitlement depends on the duration of the employee's continuous service:
    • For justified terminations (where the employer has economic or other valid reasons), it's one-quarter of a month's remuneration for each year (12 months) of service.
    • For unjustified terminations, it's three months' remuneration for each year (12 months) of service.

Example of Severance Pay Calculation

Let's assume an employee has worked with the same employer for five years and their monthly remuneration is 20,000 Mauritian Rupees (MUR):

  • For justified termination, the severance allowance would be (20,000 MUR / 4) x 5 years = 25,000 MUR.
  • For unjustified termination, the severance allowance would be 20,000 MUR x 5 years = 100,000 MUR.

Determining Justified or Unjustified Termination

It's important to determine whether the termination is considered justified or unjustified. This distinction is made by the Termination of Contracts Service Board (TCSB).

Exemptions from Severance Pay

Employees are not entitled to severance pay in the following situations:

  • They have not completed 12 months of continuous employment.
  • They are terminated for gross misconduct.
  • They reach the retirement age (60 years old) and retire voluntarily or are requested to retire by their employer.

Termination process

Terminating employment in Mauritius requires adherence to specific legal procedures to ensure compliance and fairness.

Types of Termination

There are several types of termination:

  • Termination by Employer: This includes justified termination due to economic reasons, restructuring, workplace closure, or other valid reasons. Unjustified termination is termination without a valid reason or due to the employee's protected characteristics. Summary dismissal is immediate termination in cases of employee gross misconduct.
  • Termination by Employee: This includes resignation, which is voluntary termination initiated by the employee, and constructive dismissal, where the employee resigns due to the employer's significant breach of contract or unreasonable working conditions.

Justified Termination Procedure

The procedure for justified termination includes providing the legally mandated notice period, communicating a clear and valid reason for the termination to the employee in writing, and offering the right to a hearing if requested.

Unjustified Termination

For unjustified termination, employees have the right to refer the matter to the Termination of Contracts of Service Board (TCSB), which will adjudicate and determine if the termination was justified. If deemed unjustified, the TCSB may order reinstatement or substantial compensation.

Summary Dismissal

In cases of gross misconduct, employers can summarily dismiss the employee without notice. However, the employer must have substantial evidence to justify the summary dismissal and it's advisable for employers to follow disciplinary procedures and offer the employee a chance to respond before issuing a summary dismissal.

Additional Considerations

Employers are legally obligated to provide employees with a termination certificate upon termination of employment. If disputes arise during the termination process, employees can refer the matter to the relevant labor authorities or seek legal counsel.

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