FTC regulated: Yes

Valid reasons for FTC use: no limitation

Remarks

Article 14(b) ELRA provides for the possibility to conclude "a contract for a specified period of time for professionals and managerial cadre".

The Employment and Labour Relations (General) Regulations, 2017 were enacted to improve the implementation of ELRA. Art. 11 of the Regulations provides that a contract for a specified period referred to under section 14(1)(b) of ELRA shall not be for a period of less than twelve months.

Maximum number of successive FTCs: no limitation

Maximum cumulative duration of successive FTCs: no limitation

Notes / Remarks

Notes

Under the Code of Good Practice of 2007, the failure to renew a fixed-term contract where the worker reasonably expects a renewal of the contract may be considered an unfair termination. However, in order to succeed in a claim of reasonable expectation of renewal, the employee must demonstrate that there is an objective basis for the expectation, such as previous renewals or the employer's undertaking to renew. (Rule 4, paras. (4) and (5))

Maximum probationary (trial) period (in months): 6 month(s)

Remarks

The ELRA does not regulate probationary period as such.
However, pursuant to Art. 35 ELRA, the provisions on Unfair Termination of Employment do not apply to workers with less than 6 months' employment with the same employer, whether under one or more contracts.

Obligation to provide reasons to the employee: Yes

Remarks

Article 41(3)(a) ELRA provides that a notice of termination shall be in writing, stating the reasons for termination.

Valid grounds (justified dismissal): any fair reasons

Remarks

Art. 37 ELRA: employees may not be dismissed unfairly by an employer. Termination of employment is unfair if the employer fails to prove that the reason for the termination is valid, that the reason is fair and that the employment was terminated in accordance with fair procedure. A 'fair' reason is one that is related to the employee's conduct, capacity or compatibility; or is based on the operational requirements of the employer.

Prohibited grounds: marital status, pregnancy, family responsibilities, race, colour, sex, religion, political opinion, social origin, nationality/national origin, age, trade union membership and activities, disability, exercise of a right, participation in a lawful strike, whistle blowing, HIV status, place of residence, ethnic origin

Remarks

Article 37(3) ELRA lists unfair grounds for dismissals: It is not seen to be fair to dismiss the employee if the employee discloses information that the employee is entitled to or required to disclose, fails or refuses to do anything that an employee may not lawfully permit or require the employee to do, exercises any right conferred by agreement, belongs to a trade union or participates in lawful activities of a trade union, including a lawful strike. It is also seen to be unfair to dismiss an employee for reasons related to pregnancy, disability or reasons that constitute discrimination under the Act.

- Art. 37(4) ELRA prohibits discrimination against an employee in any employment policy or practice on any of the following grounds: colour; nationality, tribe or place of origin, race, national extraction, social origin, political opinion or religion, sex, gender, pregnancy, marital status or family responsibility, disability, HIV/aids, age or station of life. Harassment of an employee is considered to be a form of discrimination.

Workers enjoying special protection: pregnant women and/or women on maternity leave

Remarks

Article 37(3)(b) ELRA: It is also seen to be unfair to dismiss an employee for reasons related to pregnancy.
In addition art. 41(4) ELRA provides that notice of termination shall not be given " (a) during any period of leave taken under this Act; or (b) to run concurrently with any such period of leave". This includes maternity leave ( 84 days min,. see art. 33 ELRA).

[See also art. 36 ELRA: failure to allow the employee to resume work after taking maternity leave granted under the ELRA or any agreed maternity leave is considered to be termination of employment, and therefore, if unilaterally decided by the employer, the fair reason requirement shall apply]

Notification to the worker to be dismissed: written

Remarks

Art. 41(3) ELRA provides that notice of termination shall be in writing.

Notice period:

Remarks

Art. 41(1) ELRA: if a contract of employment can be terminated on notice, the required period of notice is at least:
* 7 days if given in the first month of employment and after that;
* 28 days if the employee is employed on a monthly basis;
* 4 days if the employee is employed on a daily or weekly basis.
A longer notice period may be agreed upon by the parties, provided that the notice period is of equal duration for the employer and employee.

tenure ≥ 6 months:

  • monthly paid workers: 28 day(s).
  • daily or weekly paid workers: 4 day(s).

tenure ≥ 9 months:

  • monthly paid workers: 28 day(s).
  • daily or weekly paid workers: 4 day(s).

tenure ≥ 2 years:

  • monthly paid workers: 28 day(s).
  • daily or weekly paid workers: 4 day(s).

tenure ≥ 4 years:

  • monthly paid workers: 28 day(s).
  • daily or weekly paid workers: 4 day(s).

tenure ≥ 5 years:

  • monthly paid workers: 28 day(s).
  • daily or weekly paid workers: 4 day(s).

tenure ≥ 10 years:

  • monthly paid workers: 28 day(s).
  • daily or weekly paid workers: 4 day(s).

tenure ≥ 20 years:

  • monthly paid workers: 28 day(s).
  • daily or weekly paid workers: 4 day(s).

Pay in lieu of notice: Yes

Remarks

Art. 41(5) ELRA provides that instead of giving an employee notice of termination, an employer may pay the employee the remuneration that the employee would have received if the employee had worked during the notice period.

Notification to the public administration: No

Notification to workers' representatives: No

Remarks

Except in the event of termination based on operational requirements (retrenchment): art. 38(1) ELRA.

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Definition of collective dismissal (number of employees concerned): No statutory definition of collective dismissal. However, the ELRA provides for specific requirements applicable to "termination based on operational requirements (retrenchment)".

Remarks

Art. 38 ELRA.
An operational requirement is defined in the ELRA as a requirement based on the economic, technological, structural or similar needs of the employer (art. 4).

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

Remarks

Art. 38(1) ELRA:
The employer is required to give notice, disclose all relevant information and consult any trade union recognized by the ELRA, any registered trade union with members in the workplace not represented by a recognized trade union, or any employees not represented by a recognised or registered trade union. Consultation shall cover the following issues:
- the reasons for the intended retrenchment;
- any measures to avoid or minimise the intended
retrenchment;
- the method of selection of the employees to be
retrenched;
- the timing of the retrenchments; and
- severance pay in respect of the retrenchments.

Notification to the public administration: No

Remarks

No mandatory notification to the administration.
However, if the parties fail to reach an agreement during the consultation process, the matter shall be referred to the Commission for Mediation and Arbitration. This Commission which is an independent department of government composed of government representatives, and representatives of both employees and employers shall appoint a mediator to mediate the dispute (see: art. 38(2) ELRA, 86-87 ELRA and arts. 13 and 16 of the Labour Institutions Act of 2004).
If an agreement is reached, it will be enforceable.
However, according to rule 23(9) of the Code of Good Practice, the employer may not implement the retrenchment within 30 days of the referral to mediation, unless otherwise agreed between the parties. Once this period has elapsed, the employer may proceed with the retrenchment unilaterally. The fairness of the employer's action may be challenged and referred to arbitration, once mediation fails.

Notification to workers' representatives: Yes

Remarks

Art. 38(1)(d)(i) ELRA establishes a requirement for employers to give notice to any recognized trade union in the workplace.

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Remarks

No mandatory approval by the worker's representatives.
However, if an agreement is reached during the consultation process it will be enforceable. If the parties fail to reach an agreement during the consultation process, the matter shall be referred to Commission for Mediation and Arbitration.
The Commission for Mediation and Arbitration which is an independent department of government composed of government representatives, and representatives of both employees and employers shall appoint a mediator to mediate the dispute. (art. 38(2) ELRA, 86-87 ELRA and arts. 13 and 16 of the Labour Institutions Act of 2004).
According to rule 23(9) of the Code of Good Practice, the employer may not implement the retrenchment within 30 days of the referral to mediation, unless otherwise agreed between the parties. Once this period has elapsed, the employer may proceed with the retrenchment unilaterally. The fairness of the employer's action may be challenged and referred to arbitration, once mediation fails.

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

Remarks

The ELRA does not provide for selection criteria. The ELRA only states that "the method of selection of the employees to be retrenched" is one of the elements to be discussed during the consultation process (art. 38(1)(c)(iii) ELRA).
Nonetheless, the Code of Good Practices (2007) provides that when one or more employees are to be selected for termination from a number of employees, the criteria for their selection shall be agreed with the trade union. If criteria are not agreed, they shall be fair and objective. Selection criteria that are generally accepted as fair include: the employee's length of service, the need to retain key jobs, experience or skills, affirmative action and qualifications (Rule 24 CGP)

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

Remarks

Art. 38(1)(c)(ii) ELRA: the employer has to consult with workers' representatives "on any measures to avoid or minimize the intended retrenchments".
According to the Code of Good Practice (2007), when assessing the fairness of a termination based on operational requirements, "the court shall scrutinize [such termination] carefully in order to ensure that the employer has considered all possible alternatives to termination before the termination is effected" (Rule 23(1) CGP).

[See also art. 42(3)(b) ELRA: the severance pay is not paid "to an employee who is terminated on grounds of capacity, compatibility or operational requirements of the employer, but who unreasonably refuses to accept alternative employment with that employer or any other employer".]

Priority rules for re-employment: No

Remarks

No statutory provision on preference in re-hiring in the ELRA.
However, such preference is provided in the Code of Good Practice (rule 25 CGP) which reads as follows:
- "(1) Retrenched employees shall be given preference if the employer re-hires employees with comparable qualifications, subject to the following:
(a) the employee having expressed within a reasonable time form the date of termination, a desire to be re-hired; and
(b) a time limit on preferential re-hiring shall also ideally form the subject of agreement between the employer and the union.
(2) Where the above conditions are met, the employer shall take reasonable steps to inform the employee, including notification to the representative trade union, of the offer of re-employment."

Severance pay:

Remarks

Severance pay is defined in the ELRA as an amount equal to seven days basic wage for each completed year of continuous service with that employer up to a maximum of ten years. (art. 42(1) ELRA)
An employer is required to pay severance on termination of employment if the employee has completed 12 months of continuous service with an employer and the employer terminates the employment (art. 42(2) ELRA).
Severance is not required to be paid:
* if the termination is fair on grounds of misconduct, or
* to an employee who is terminated on grounds of capacity, compatibility or operational requirements who unreasonably refuses to accept alternative employment with that employer or any other employer (art. 42(3) ELRA).

tenure ≥ 6 months: 0 day(s)

tenure ≥ 9 months: 0 day(s)

tenure ≥ 1 year: 1 week(s)

tenure ≥ 4 years: 4 week(s)

tenure ≥ 5 years: 5 week(s)

tenure ≥ 10 years: 10 week(s)

tenure ≥ 20 years: 10 week(s)

Redundancy payment:

Remarks

No specific redundancy payment: severance pay covers retrenchments (see art. 42 ELRA). However, severance pay can be higher than the statutory amounts in the event of retrenchment if so agreed during the consultation process.

tenure ≥ 6 months: 0 week(s)

tenure ≥ 9 months: 0 week(s)

tenure ≥ 1 year: 1 week(s)

tenure ≥ 2 years: 2 week(s)

tenure ≥ 4 years: 4 week(s)

tenure ≥ 5 years: 5 week(s)

tenure ≥ 10 years: 10 week(s)

tenure ≥ 20 years: 10 week(s)

Compensation for unfair dismissal - free determination by court: No

Remarks

Art. 40(1)c) ELRA (see below: minimum 12 months' pay).

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method): -In case of unfair dismissal, the labour court or an arbitrator may order the employer to pay compensation to the worker of not less than twelve months' remuneration.
- Where an order of reinstatement or re-engagement is made by an arbitrator or court and the employer decides not to follow it, the employer shall pay compensation of twelve months wages in addition to wages due and other benefits from the date of unfair termination to the date of final payment.

Remarks

Art. 40(1)c) ELRA.

Reinstatement available: Yes

Remarks

Art 40(1)a) ELRA: If the labour court or an arbitrator finds the dismissal unfair, the court or the arbitrator may order the employer to reinstate the employee from the date the employee was terminated without loss of remuneration during the period
that the employee was absent from work due to the unfair
termination. They can also order the employer to re-engage the employee on any terms by them decided (art. 40(1)c) ERA).

Preliminary mandatory conciliation: No

Remarks

No preliminary mandatory conciliation as such.
However, the ELRA provide for an optional preliminary mediation: an employee who wishes to contest a dismissal may refer the dispute to the Commission for Mediation and Arbitration established under section 12 of the Labour Institutions Act of 2004 (No. 7). The Commission will appoint a mediator to mediate the dispute, decide the time, date and place of the mediation hearing and advise the parties of this. (art. 86(3) ELRA). The mediator should resolve the matter within thirty days of the referral or longer if the parties agree to it. Where the mediator fails to resolve the complaint within the agreed upon period of time, it is referred to either arbitration or to the Labour Court. The Labour Court may refuse to hear a complaint if the complaint has not been referred to mediation, if the mediation has not been conducted according to the ELRA, or if the application is not urgent (art. 94(2) ELRA).

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

Remarks

Where the mediator fails to resolve the complaint within the agreed upon period of time, it is referred to either arbitration or to the Labour Court (see art. 40 ELRA: remedies for unfair termination to be awarded by the Labour Court or an arbitrator).
The Labour Court means the Labour Division of the High Court established under section 50 of the Labour Institutions Act, 2004 (art. 4 ELRA).
The Labour Court which has exclusive jurisdiction over the application, interpretation and implementation of provisions of the ELRA, may refuse to hear a complaint if the complaint has not been referred to mediation, if the mediation has not been conducted according to the ELRA, or if the application is not urgent (art. 94 ELRA).

Existing arbitration: Yes

Remarks

In the event the mediator fails to resolve the dispute, it is referred to either arbitration or to the Labour Court (art. 86(7) ELRA)
For the purposes of arbitration, a dispute is defined to include a complaint over the fairness or lawfulness of an employee's termination of employment (Art. 88(1)b) ELRA).