Termination of Employment and Severance Pay Act 1997

Continued from last week

16. (1) In lieu of giving notice of termination under section 15 (1) the employer shall pay the employee a sum equal to the remuneration and benefits due to the employee up to the expiry of any required period of notice.

(2) In lieu of giving notice of termination under section 15 (2), the employee shall pay the employer a sum equal to the remuneration and benefits payable by the employer to the employee up to the expiry of any required period of notice.

17. On the termination of a contract of employment an employer, if so requested by the employee, shall provide the employee with a certificate of termination.

18. (1) An employer shall be entitled to take disciplinary action other than dismissal against an employee when it is reasonable to do so under the circumstances.

(2) For purposes of this section “disciplinary action” includes in order of severity-

(a) a written warning;

(b) suspension without pay.

(3) No employer may impose a fine or other monetary penalty on an employee.

(4) In deciding what is reasonable under the circumstances pursuant to subsection (1), the employer shall have regard to the nature of the violation, the employee’s duties, the nature of any damage incurred and the previous conduct and the circumstances of the employee.

(5) A complaint that disciplinary action is unreasonable may be made to the Chief Labour Officer for determination.

(6) Where any determination under subsection (5) reveals that any disciplinary action under this section was unreasonable such disciplinary action shall be withdrawn and in the case of any disciplinary action under subsection (2) (b), any payment withheld shall be refunded and the employee reinstated in his employment.

19. Without prejudice to any right an employee may enjoy under a collective agreement, such employee shall have the right to seek redress from the High Court where he is unfairly dismissed or disciplined in violation of section 8.

20. (1) if the employee’s complaint of unfair dismissal or imposition of disciplinary action is proved to the satisfaction of the High Court it shall award the employee compensation as specified in subsections (2) and (3)

(2) An award of compensation shall be such amount as the Court considers just and equitable in all the circumstances having regard to the loss sustained by the employee as a consequence of the dismissal or discipline in so far as that loss is attributable to action taken by the employer, and the extent if any to which the employee caused or contributed to the dismissal or discipline.

(3) The High Court may, if it deems fit, award any other just remedy in addition to or in lieu of the award referred to in subsection (2).

Part 1V
SEVERANCE OR REDUNANCY ALLOWANCE

21. (1) On termination of his employment, an employee who has completed one year or more years of continuous employment with an employer shall be entitled to be paid by such employer a severance or redundancy allow-ance equivalent to-

(a) one week’s wages for such completed year of service for the first five years including the entitlement year;

(b) two weeks wages for each completed year of services after the fifth year and up to the tenth year;

(c) three weeks wages for each completed year of service in excess of ten years up to a maximum of fifty two weeks.

(2) For the purpose of subsection (1) termination of employment includes termination by reasons of redundancy and termination by reason of severance of employment.

(3) the payment of a severance or redundancy allowance under subsection (1) shall not affect the employee’s entitlement if any, to payment in lieu of notice under section 16.

(4) subsection (1) shall not apply where the employee

(a) is summarily dismissed under section 10 or his employment is terminated under section 9 or 11;

(b) unreasonably refuses in case of redundancy under section 12 to accept an offer of re- employment by the employer at the same place of therefrom under no less favourable conditions than those such employee enjoyed immediately prior to the termination;

(c) is employed by a partnership and the employment of the employee ceases on the dissolution of the partnership, and such employee either enters into employment with one or more of the partners immediately after such dissolution, or unreasonably refuses to accept an offer of employment by any such person on no less favourable terms than those such employee enjoyed prior to the dissolution.

(5) An employer who fails to comply with the provisions of this section shall be liable on summary conviction to a fine of thirty-one thousand two hundred and fifty dollars and to imprisonment for one year.

(6) where an employer has been convicted under this section for failing to pay severance or redundancy allowance to an employee the court convicting him shall, in addition to any other penalty imposed, order such employer to pay such sum as in the opinion of the court represents the severance or redundancy allowance.

(7) for the purpose of subsection (1) “wages” means the basic wages excluding any allowance received by the employee at the time of termination of his employment.

22. The Chief Labour Officer may institute or cause to be instituted any prosecution for the purpose of enforcing any of the provisions of this Act and any officer of the Department of Labour may appear as prosecutor for and on behalf of the Chief Labour Officer .

23. All complaints under this Act may be heard and determined and all offences and penalties may be prosecuted and enforced in the manner provided by the Summary Jurisdiction Acts:

Provided that any order for payment or recovery of severance or redundancy allowance shall be enforceable in the same manner as an order for the payment of compensation under the Summary Jurisdiction (Procedure) Act.

24. Any person who by an act or omission contravenes or fails to comply with any provision of this Act shall, unless a penalty is otherwise specifically provided, be liable to pay a fine of twenty thousand dollars and to imprisonment for eight months.

25. Section 16 (1) and (2) of the Labour Act are herby repealed.

Passed by the National Assembly on 7th August, 1997.