Contracts and Dismissals
Written Employment Particulars
Employment contracts are regulated under the Employment Act, which specifies fixed-term, indefinite-term, and task-based employment contracts. Employers are required to provide a written statement to the worker, which should include the following details:
- the names of the employee and of the employer;
- the date of commencement of the contract;
- the rate of remuneration and the method of calculating remuneration;
- the intervals at which remuneration is paid (wage period);
- the nature of the work to be performed;
- normal hours of work;
- any provision for the termination of the contract;
- any disciplinary rule applicable to the employee.
The written statement must be handed to the employee within one month of his/her reporting to work.
Source: §25 & 27 of the Employment Act (No. 6 of 2000), last amended in 2021
Fixed Term Contracts
Although the Employment Act stipulates that a contract may be for a specified period of time, no provisions can be identified under the law which mention the objective reasons for which such contracts may be concluded. The Employment Act also does not specify the maximum length of a single fixed-term contract or the maximum number of renewals that are allowed for a single fixed-term contract.
However, in accordance with the Employment Act, fixed-term or task-based contracts used to fill in on a lasting basis positions connected with the normal and permanent activity of an undertaking are deemed concluded for an unspecified period of time (indefinite term).
Source: §28(3) of the Employment Act (No. 6 of 2000), last amended in 2021
Probation Period
Probation or trial period is regulated under the Employment Act. In respect of a skilled worker, parties may agree to add a provision on probation in the employment contract, provided that its duration does not exceed 12 months.
During the probationary period, a contract of employment can be terminated at any time by either party without notice.
Source: §26 of the Employment Act (No. 6 of 2000), last amended in 2021
Termination of Employment
The Employment Act recognises the following six types of employment termination:
- Termination of fixed-term contracts on expiry of term or completion of task
- Termination of indefinite-term contracts by notice
- Summary dismissal for gross misconduct by the worker
- Constructive dismissal (termination by the worker for serious breach of contract on the part of the employer)
- Termination due to the death or insolvency of the employer, or the transfer of the undertaking
- Termination for operational/economic reasons
Employer is required to provide a contract termination certificate, which should include, among others, the reasons for employment termination. An employer may not terminate the employment contract without a valid reason connected with the capacity or conduct of the employee or based on the operational requirements of the undertaking. The employee must be provided with an opportunity to defend himself against the allegations.
An employer may summarily dismiss a worker (without notice or less than the required notice) if he/she is guilty of gross misconduct, habitual or substantial neglect of duties, lack of skills claimed by the worker, wilful disobedience, or absence from work without permission and reasonable excuse. A worker may also terminate the employment contract (without notice or less than required notice) where the employer’s conduct has made it reasonable to terminate the employment relationship (constructive dismissal).
The invalid reasons for dismissal include marital status; pregnancy; maternity leave; family responsibilities; race; colour; sex; religion; political opinion; social origin; nationality/national origin; property; birth; ethnic origin; trade union membership and activities; disabilities; language; filing a complaint against the employer; temporary work injury or illness; participation in a lawful strike; and refusal of a worker to do the work normally done by a striking worker.
A dismissal is fair only if the employer proves a valid reason, related to the employee’s capacity or conduct, or the employer’s operational requirements (economic/technical/structural) and the dismissal is effected in accordance with fair procedure.
Employers must justify dismissals; failure to do so presumes unfair dismissal. Employees can file complaints within three months, with unresolved cases referred to court. Remedies include reinstatement, re-engagement, or compensation based on years of service and circumstances. If reinstatement is ignored, the employee receives additional compensation.
Source: §57-63 of the Employment Act (No. 6 of 2000), last amended in 2021
Regulations on Employment Security
- Employment Act (No. 6 of 2000), last amended in 2010
