Contracts and Dismissals
Written Employment Particulars
Employment contracts are regulated under the Labour Act, which states that the contract can be written or oral for all contractual terms (definite or indefinite).
No provisions could be identified from within the law that stipulate the terms that are to be part of the employment contract, neither does the law expressly mention that the employer provides the employee with written employment particulars.
Source: §04 of the Labour Act, 2024 (Act No. 3 of 2024)
Fixed Term Contracts
An employment contract can be entered into:
- Indefinite period - the employees have a right to continue working for the employer until the employment contract is terminated by one of the parties.
- Fixed term period - These contracts are for completing specific tasks or specific period. They will terminate once the duration or task for which they were created has been completed.
If a fixed-term contract includes a renewal provision, the employer is obligated to provide notice regarding the termination or renewal of the contract. Additionally, if an employer chooses to terminate a fixed-term contract before its specified end date, they must compensate the worker with all wages and remuneration that would have been owed had the worker completed the contract as originally agreed.
No provisions could be identified from within the law outlining: the conditions under which fixed-term contracts may be allowed, the maximum length of a single fixed-term contract and the number of renewals allowed for fixed-term contracts.
Source: §127 of the Labour Act, 2024 (Act No. 3 of 2024)
Probation Period
The Labour Code sets the maximum period for probation as four months. The trial/probation period can only be extended after obtaining express authority from the Labour Commissioner in this regard.
An employment contract may be terminated during the trial period. In the case of employment termination, the employer may give 07-day prior notice.
For employees in management or professional positions, the probation period can be extended up to one year if both parties mutually agree.
Source: §128 of the Labour Act, 2024 (Act No. 3 of 2024)
Termination of Employment
Employment termination is regulated under the Labour Act 2024.
The employment contracts can end in the following ways:
expiration of the contract term or completion of the agreed work; mutual agreement between employer and employee; resignation by either party; termination by either party with just cause; Retirement or death of worker; Death of individual employer;
Termination of the employment contract for just cause by the employer (dismissal of the worker) must be based on the capacity of the worker to perform work; conduct of the worker; or operational requirements of the enterprise.
A dismissal is considered unfair unless the employer proves that it was reasonable and based on any of the above valid grounds. The worker must be given a chance to defend themselves, unless it is impractical due to the situation. Even if this opportunity is not provided, the worker can still challenge the dismissal under the terms of a contract, collective agreement, or the Labour Act.
A dismissal is automatically considered unfair if it is based on certain prohibited grounds. These include:
participating in trade union activities, acting as a workers’ representative, or filing a grievance/complaint in good faith or participating in proceedings against the employer for alleged violation of the law. Dismissal due to discrimination based on race, colour, sex, marital status, pregnancy, religion, political opinion, national extraction or social origin, HIV/AIDS status, or other similar categories. Participation in a protected strike or refusing dangerous working conditions also cannot be grounds for dismissal.
However, dismissal may still be valid if it relates to misconduct during a strike or if it is due to operational requirements
When employment ends, an employee can request a written certificate identifying the parties, showing the periods of service and nature of employment.
Sources: §134 & 138-140 of the Labour Act, 2024 (Act No. 3 of 2024)
Regulations on Employment Security
- Labour Act, 2024 (Act No. 3 of 2024)
- Public Holidays Act 1995
