Contracts and Dismissals

Written Employment Particulars

The Labour Act states that the employment contract can be either oral or written. The contract can be for a definite period, an appropriate period or for the performance of a specific task. The contract is to contain the following particulars: name of employer; place of employment; name of employee and other details necessary for identification; nature and duration of employment; period of notice for termination of contract; salary/wages; measures to be taken for the welfare of the employee and their family; conditions of repatriation (where applicable); and any other conditions of the contract.

Furthermore, the employer is to provide an employee with all the information in a form which an employee can understand, which includes the fundamental rights of employment as provided in the Labour Act, particulars of the employment contract, and other minimum conditions of employment as stated in the Labour Act.

The employer can either have a written employment contract and provide the employee with a copy or he/she can have an oral employment contract whereby the employee will then have to be provided with a written statement containing the required information, or a notice can be posted in the workplace containing the required information in languages which are understood by the employee. Notice can be used in the case where the terms of the oral contract are the same as those applying to other employees.

Sources: §42, 43 & 44 of the Labour Act, 2017

Fixed Term Contracts

The Labour Act allows fixed-term contracts. It further states that where the employment for a definite period has expired but the employee continues to work without a contrary direction from the employer, the contract is deemed to be renewed on the same terms as the expired contract. Where the employee’s employment continues for a period of two years after the expiry of the employment contract, the employment is deemed to be for an indefinite period. The maximum length of a single fixed-term contract (or including renewals) is not clearly specified under the law.

Sources: §42 of the Labour Act, 2017

Probation Period

The employer can require an employee to serve a probationary period. However, the probationary period cannot exceed 3 months.

Sources: §42 of the Labour Act, 2017

Termination of Employment

Employment can be terminated by mutual agreement or by serving notice or due to expiration of the contract. Employment may also end because of the death of an employee, redundancy or gross misconduct.

Redundancy means terminating multiple employees for reasons not related to individual performance or conduct. The employer must notify the Ministry and employee and follow the procedure mentioined in labour law,

Gross misconduct is a serious breach of employment obligation. It includes theft/fraud, breach of confidentiality, violence, intoxication, endangering safety and repeated misconduct. employment is terminated immediately without notice or severance pay. Employer must investigate, provide employee chance to respond before taking any decision.

The dismissal is considered unfair if it’s lacking cause or due process or based on discrimination. In this case, the employee can ask to get their old job back with all their benefits, or take a similar job if things can still work out with the employer. If going back isn’t possible, they can get money instead—up to a year’s worth of their salary, depending on how long they worked, plus any pay they missed since being let go. To sort this out, they need to complain to the Labour Office within three months. There, someone will try to help settle it, or it might go to a court if needed, and they can keep appealing if they’re not satisfied with the decision.