FTC regulated: Yes

Valid reasons for FTC use: no limitation

Maximum number of successive FTCs: no limitation

Remarks

However, note Section 12 (5) Labour Act: Where the purpose or effect of a contract of employment that is purportedly for a specified period of time or for a specified task is the filling of a post connected with the normal and permanent activity of the enterprise for a period of over two years of continuous employment as defined under this Code, it shall be deemed a contract without reference to limit of time.

Maximum cumulative duration of successive FTCs: no limitation

Maximum probationary (trial) period (in months): 3 month(s)

Remarks

Section 130 Labour Act: (1) Subject to subsection (2), a new employee may be required to serve a probationary period of not more than twelve weeks or a shorter or longer period of time agreed to between the employer and the employee.

Obligation to provide reasons to the employee No

Remarks

However, note that according to section 135 LA (warnings and termination for misconduct) the employer may give the employee
a written warning outlining the particulars of the offence. Section 136 LA (unsatisfactory performance) requires the employer to give the employee written warning and appropriate instructions to correct the performance.
Moreover, section 156 LA observes that on the termination of a contract of employment, if so requested by the employee, the employer shall provide the employee with a certificate of termination indicating the reason of termination of employment.

Valid grounds (justified dismissal): worker's conduct, worker's capacity, economic reasons

Remarks

Section 129 Labour Act: The employment of an employee-
a) without reference to limit of time
b) for a specific task where that task is not completed; or
c) for a time period where that time period is not completed;
shall not be terminated by an employer, unless there is a valid reason for such termination connected to the capacity, performance or conduct of the employee or for reasons of redundancy and, unless in accordance with the principles and procedures under this Division

Prohibited grounds: marital status, pregnancy, maternity leave, family responsibilities, filing a complaint against the employer, temporary work injury or illness, race, colour, sex, sexual orientation, religion, political opinion, social origin, nationality/national origin, age, trade union membership and activities, disability, performing military or civil service, exercise of a right, parental leave, participation in a lawful strike, whistle blowing, HIV status, performing jury service, ethnic origin

Remarks

Section 131 Labour Act:(1) An employer shall not dismiss an employee or institute disciplinary action based on-
(a) an employee’s race, sex, religion, colour, ethnic origin, national extraction, indigenous origin, social origin, political opinion or affiliation, trade union affiliation or activity, disability , sexual orientation, serious family responsibility or marital status;
(b) an employee’s age, subject to any other enactment in force, or collective bargaining provisions or contractual provisions regarding retirement;
(c) a female employee’s maternity leave or benefits, pregnancy or a reason connected with her pregnancy;
(d) an employee’s exercise of any of his or her organizational or associative rights as specified under this Code;
(e) an employee’s temporary absence from work because of sickness or injury, unless it occurs frequently and is found to be an abuse of sick leave provisions under this Code;
(e) an employee’s temporary absence from work because of sickness or injury, unless it occurs frequently and is found to be an abuse of sick leave provisions under this Code;
(f) the perception that the employee has or is carrying the HIV/AIDS unless the employee is engaged in work established as putting other persons at risk of contracting the HIV/AIDS or unless the inherent requirements of the job permit the removal of that employee to other duties;
(g) an employee’s absence from work due to compulsory military service, national service, public duty or other civic obligation in accordance with any enactment or practice in force;
(h) an employee’s exercise or proposed exercise of the right to remove himself or herself from a work situation which he or she reasonable believes presents an imminent or serious danger to life, health or safety;
(i) an employee’s participation, or proposed participation, in industrial action, including strikes;
(j) the filing of complaint or the participation in proceedings against an employer involving alleged violations of this Code;
(k) an employee’s refusal to do work usually performed by another employee or employees currently engaged in industrial action where that work does not form part of his or her contract of employment; or
(l) a conviction which is spent in accordance with the Criminal Records (Rehabilitation of Offenders) Act 2004, No 2.

(2) A dismissal on any grounds specified in subsection (1) constitutes unfair dismissal and entitles the employee to compensation in accordance with this Code.

For pregnancy and any other reason connected with pregnancy, see art. 285 LA (note that this section was slightly modified by 2011 Amendment)

Workers enjoying special protection: pregnant women and/or women on maternity leave, workers with family responsibilities, workers performing military/alternative service, workers on temporary leave following an occupational disease or a work injury, workers holding an elected position or discharging a public function

Remarks

Section 153 Labour Act: (6) A notice of termination under subsection (1) shall not be given by an employer during an employee’s period of absence on any leave granted under any enactment force.
(7) for the purpose of subsection (6), leave includes paid annual leave, maternity leave, sick leave, leave for national service, leave for public duty and leave for serious family responsibilities.

See also:
Section 101 LA: An y notice of termination of employment given by an employer to an employee during a vacation leave shall be void and of no effect.

Notification to the worker to be dismissed: written

Remarks

Labour Act, section 153: (1) Where a valid reason for termination exists in accordance with this Code, a contract without reference to limit of time, except during the probationary period, may be terminated by the employer upon giving to the employee the following minimum periods of notice in writing -
(a) one week’s notice if the period of continuous employment is more than twelve weeks but less than two years;
(b) two weeks’ notice if the period of continuous employment is two years or more but less than five years;
(c) four weeks’ notice if the period of continuous employment is five years or more but less than ten years; and
(d) six weeks’ notice if the period of continuous employment is more than ten years.

Notice period:

Remarks

Labour Act, section 153: (1) Where a valid reason for termination exists in accordance with this Code, a contract without reference to limit of time, except during the probationary period, may be terminated by the employer upon giving to the employee the following minimum periods of notice in writing-
(a) one week’s notice if the period of continuous employment is more than twelve weeks but less than two years;
(b) two weeks’ notice if the period of continuous employment is two years or more but less than five years;
(c) four weeks’ notice if the period of continuous employment is five years or more but less than ten years; and
(d) six weeks’ notice if the period of continuous employment is more than ten years.

tenure ≥ 6 months:

  • All: 1 week(s).

tenure ≥ 9 months:

  • All: 1 week(s).

tenure ≥ 2 years:

  • All: 2 week(s).

tenure ≥ 4 years:

  • All: 2 week(s).

tenure ≥ 5 years:

  • All: 4 week(s).

tenure ≥ 10 years:

  • All: 6 week(s).

tenure ≥ 20 years:

  • All: 6 week(s).

Pay in lieu of notice: Yes

Remarks

Section 155 Labour Act: (1) In lieu of providing notice of termination, the employer may opt to pay the employee a sum equal to the employees' wages and other remuneration and confer on the employee all other benefits up to the expiry of any period of notice

Notification to the public administration: No

Notification to workers' representatives: No

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Definition of collective dismissal (number of employees concerned): No statutory definition collective dismissal.

Remarks

Termination due to redundancy is defined by reference to the reasons and not to the number of employees concerned. See section 145 Labour Act.

Prior consultations with trade unions (workers' representatives): Yes

Remarks

Section 145 (3) Labour Act: Prior to terminating the employment of any employee pursuant to this section [Termination due to redundancy], the employer shall-
(A) inform the trade union recognized in accordance with Division 2 of Part VII or, if none exists, the employees' representative and the employee as early as possible, of inter alia -
(i) the existence of any situation described under section (2);
(ii) the reasons for the terminations contemplated;
(iii) the number and categories of the persons likely to be affected; and
(iv) the period over which such terminations are likely to be carried out;

(B) consult as early as possible with that recognized trade union, or if none exists, the employees' representative, and the employee on-
(i) the possible measures that could be taken to avert or minimize the adverse effects of such situations on employment; and
(ii) the possible measures that could be taken to mitigate the adverse effects of any terminations on the employee concerned

Notification to the public administration: Yes

Remarks

Section 145 (3) Labour Act: Prior to terminating the employment of any employee pursuant to this section [Termination due to redundancy], the employer shall-
(C) notify the Labour Commissioner as early as possible, giving relevant information, including a written statement of -
(i) the reason for the terminations;
(ii) the number and categories of workers likely to be affected; and
(iii) the period over which the terminations are likely to be carried out.

Notification to workers' representatives: Yes

Remarks

Section 145 (3) Labour Act: Prior to terminating the employment of any employee pursuant to this section [Termination due to redundancy], the employer shall-
(A) inform the trade union recognized in accordance with Division 2 of Part VII or, if none exists, the employees' representative and the employee as early as possible, of inter alia -
(i) the existence of any situation described under section (2);
(ii) the reasons for the terminations contemplated;
(iii) the number and categories of the persons likely to be affected; and

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Priority rules for collective dismissals (social considerations, age, job tenure): No

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): Yes

Remarks

Section 145 (3) Labour Act: Prior to terminating the employment of any employee pursuant to this section [Termination due to redundancy], the employer shall-
(B) consult as early as possible with that recognized trade union, or if none exists, the employees' representative, and the employee on-
(i) the possible measures that could be taken to avert or minimize the adverse effects of such situations on employment; and
(ii) the possible measures that could be taken to mitigate the adverse effects of any terminations on the employee concerned;

Priority rules for re-employment: No

Severance pay:

Remarks

Section 161 LA: (1) The Minister may, after consultation with the trade unions and the employers’ organizations, make
Regulations relating to severance.
(2) Until such time as the Minister makes Regulations pursuant to subsection (1), the existing collective agreements and practices relating to severance shall continue.

See also section 144 LA: where an employee is dismissed for misconduct or for unsatisfactory performance or for breach of contract in accordance with this Division, he or she is entitled to remuneration and accrued leave up to and including the date of the dismissal.

tenure ≥ 6 months: 0 day(s)

tenure ≥ 9 months: 0 day(s)

tenure ≥ 1 year: 0 day(s)

tenure ≥ 4 years: 0 day(s)

tenure ≥ 5 years: 0 day(s)

tenure ≥ 10 years: 0 day(s)

tenure ≥ 20 years: 0 day(s)

Redundancy payment:

Remarks

Section 160 Labour Act: (1) On termination of employment due to redundancy an employee who has completed no less than two years of continuous employment with his or her employer is entitled to be paid by the employer redundancy pay equivalent to -
(a) one week’s basic pay for each completed year of service up to the first three years;
(b) two weeks’ basic pay for each completed year of service in excess of three years and up to seven years; or
(c) three weeks’ basic pay for each completed year of service in excess of seven years of service.

tenure ≥ 6 months: 0 week(s)

tenure ≥ 9 months: 0 week(s)

tenure ≥ 1 year: 0 week(s)

tenure ≥ 2 years: 2 week(s)

tenure ≥ 4 years: 5 week(s)

tenure ≥ 5 years: 7 week(s)

tenure ≥ 10 years: 20 week(s)

tenure ≥ 20 years: 50 week(s)

Compensation for unfair dismissal - free determination by court: Yes

Remarks

Section 419 and 420 Labour Act:
sec 419: Where the Labour Commissioner makes a statement of finding in accordance with section 415, he or she may recommend an appropriate remedy and in particular may -
(a) in an unfair dismissal matter, recommend the payment of a sum of money equal to the loss of remuneration sustained from the date of dismissal.

If the recommended remedy is accepted by both parties, the remedy shall be registered by the Tribunal within three weeks and shall become binding as an award of the Tribunal. If not, the recommendation shall be forwarded to the Tribunal, which, in its discretion will accept or substitute the recommendation (section 420 Labour Code)

Reinstatement available: Yes

Remarks

Section 419 Labour Act: Where the Labour Commissioner makes a statement of finding in accordance with section 415, he or she may recommend an appropriate remedy and in particular may -
(B) Recommend the reinstatement or re-engagement of any employee where appropriate and in accordance with this Code.

See also section 442 Labour Code for reinstatement as an available option for Tribunals.

Preliminary mandatory conciliation: No

Remarks

Note that, section 402 stablishes that the Labour Commissioner shall promote the settlement of any differences between employers and employees in accordance with the provisions of this Code including the facilitation of any meetings for the purposes of conciliation between the parties to a trade dispute;

Conciliation procedures must be exhausted if it exists any arrangements for settlement of disputes by conciliation or arbitration made pursuant to an agreement between employers' organizations and trade union organizations. The Labour Commission shall not, unless with the consent of both parties to the dispute, and unless and until there has been a failure to obtain a settlement by means of those arrangements, refer the matter for settlement in accordance with this Division. (Section 389 LA)

Competent court(s) / tribunal(s): labour court

Remarks

In individual disputes, the Labour Commissioner, part of the Department of Labour, has even more power to solve disputes (see section 403, 404 and 404 for collective disputes). Labour Commissioner will act as a first instance, and the matter will only be referred to the Tribunal in certain limited circumstances.

Section 410 Labour Act: (1) Except where provision is made under this Code for a complaint to be addressed directly to the Tribunal, any complaint made by an individual, alleging a contravention of any of the provisions of this Code, shall be made to the Labour Commissioner in first instance. (2) Upon receipt of a compliant under subsection (1), the Labour Commissioner may refer the matter to the Tribunal for determination.
Section 417 Labour Act: (1) Subject to subsection (2), where a decision of an individual dispute has been made by the Labour Commissioner, that decision shall be final and binding.
(2) Subsection (1) shall not apply where the matter is referred to the Tribunal for review.

Regarding the Labour Tribunal,
Section 424. There is hereby established a tribunal to be known as the Labour Tribunal which shall have jurisdiction to hear and decide all matters referred to it in accordance with this Code.

Existing arbitration: Yes

Remarks

According to section 389 of the Labour Code, collective agreements may provide for conciliation and arbitration as a way of settling labour disputes. In such case, the Labour Commissioner shall abstain from considering the matter until those mechanisms are exhausted.