NamibiaTermination and Severance Policies

In Namibia, the Labour Act, 2007 (Act No. 6 of 2007) outlines the legal requirements for notice periods during employment termination.

Minimum Notice Periods

The Act mandates minimum notice periods based on an employee's length of service:

• For employees who have worked for less than 4 weeks, a 1 day's notice is required.
• For those who have worked for more than 4 weeks but less than 1 year, a 1 week's notice is required.
• For employees who have worked for more than 1 year, a 1 month's notice is required.

It's important to note that these are minimums. Employers and employees can agree to a longer notice period, as long as it's the same for both parties.

Notice Requirements

For a valid notice of termination:

• The notice must be in writing, except for illiterate employees who can give verbal notice.
• If the employer is terminating, the written notice should include the reason(s) for termination.
• Notice cannot be given during an employee's leave period, nor can it run concurrently with leave.
• For employees with over a year of service, notice must be given on or before the 1st or 15th day of the month.

Exceptions to Notice Periods

The employer can dismiss an employee without notice or payment in lieu of notice for a lawful reason, such as gross misconduct.

In Namibia, the Labour Act, 2007 (Act No. 11 of 2007) outlines the regulations for severance pay entitlements.

Eligibility for Severance Pay

Namibian employees are entitled to severance pay under the following circumstances:

• Dismissal by Employer: If an employee is lawfully dismissed by the employer for a valid and fair reason, they are entitled to severance pay.
• Retirement at Age 65: Employees who retire upon reaching the age of 65 are entitled to severance pay.
• Death of the Employee: In the event of an employee's death while in service, their dependents are entitled to the severance pay.

Calculation of Severance Pay

The calculation of severance pay is based on the following:

• Eligibility Requirement: An employee must have completed at least 12 months of continuous employment with the same employer to qualify for severance pay.
• Payment Amount: The amount of severance pay is calculated at one week's basic wage for each year of continuous service with the same employer.
• Wage Definition: The wage used in the calculation is the employee's regular wage at the time of termination.

Circumstances Where Severance Pay is Not Payable

Severance pay is not applicable in the following situations:

• Resignation: Employees who resign do not automatically receive severance pay unless they reach the retirement age of 65.
• Constructive Dismissal: If an employee resigns due to the employer creating an intolerable work environment, it's treated as dismissal, and severance pay may apply.
• Unlawful Dismissal: Severance pay is not applicable if an employee is dismissed unfairly or without a valid reason in accordance with the Labour Act.

Payment of Severance Pay Upon Death of an Employee

In the event of an employee's death while in service, the severance pay must be paid to:

• Surviving Spouse: If there is one.
• Children: If the employee did not have a surviving spouse.
• Employee's Estate: If there is no surviving spouse or children.

Termination of employment in Namibia is governed by the Labour Act, 2007 (Act. No 11 of 2007), which ensures fairness and prevents legal disputes. The termination process can be initiated by either the employer or the employee.

Employer-Initiated Termination

Employer-initiated termination can take two primary forms:

Termination with Notice

• Valid and Fair Reason: The employer must have a valid reason for termination, such as misconduct, incapacity, or operational reasons. The Labour Act outlines reasons for fair dismissal.
• Fair Procedure: Employers must follow fair procedures before dismissing an employee. This usually involves giving the employee an opportunity to respond to allegations and a chance to improve in cases of misconduct or incapacity.
• Written Notice: The employer must give written notice according to the minimum notice periods prescribed by the Labour Act. The notice should include the reason(s) for termination.

Summary Dismissal (Without Notice)

• Lawful Reason: The employer may summarily dismiss an employee without notice or pay in lieu of notice for a reason recognized by law, such as gross misconduct.
• Fair Investigation and Hearing: Even in summary dismissals, employers must still conduct a fair investigation and offer the employee a chance to defend themselves.

Employee-Initiated Termination

• Notice Period: Employees are required to provide a written notice of resignation in line with the minimum notice periods in the Labour Act.

Special Cases

• Insolvency and Death: If an employer dies, becomes insolvent, or a business is wound up, the contract terminates after a month (or longer, as specified in the contract or collective agreement, if applicable).

Important Considerations

• Collective Agreements: Collective agreements between employers and trade unions may stipulate further requirements or offer more beneficial terms than the minimum statutory requirements.
• Contractual Terms: The individual employment contract may also include specific provisions regarding termination procedures.
• Dispute Resolution: The Labour Act offers channels for resolving disputes related to unfair dismissals.