Employment can be ended jointly or unilaterally by either party if a minimal notice time has been met. Employers and workers who fail to submit the proper notice are obligated to pay the earnings earned during the notice period. Upon separation of service, all accumulated but unused leave is also paid out.
By providing at least 48 hours notice, an employment contract may be ended owing to an employee's incapacity to execute the work duties, for health reasons, for a lack of essential professional abilities, or for misbehavior.
If a pregnant female employee has a medical basis for terminating her position, she may do so without notice. This violation does not constitute a cause of action.
Fixed-term contracts automatically terminate on the contract's expiration date. They may, however, be terminated by either party for cause, including misbehavior, force majeure, economic and financial difficulties, court judgments, mutual consent, or an unjustifiable breach of the contract by one of the parties. Breach of contract occurs as a result of the failure to execute labor or other responsibilities, violence, violation of confidentiality, or persistent unexcused absence, to mention a few.
Unjust dismissal may entitle an employee to compensation. Damages cannot exceed two months' wages for employees in businesses with less than 11 employees; four months' wages for employees in businesses with 11 to 49 employees; or six months' wages for employees in businesses with more than 49 employees.
The employer is expected to notify the Labour Inspectorate in writing within eight days after the employee's termination of employment and to provide the employee with a certificate of work detailing the employee's entry and leave dates, as well as the nature of the job.
Regular roles have a one-month notice period, while executive positions have a three-month notice period. The reason for the termination, the employer's name, social security number, address, the employee's name, date of employment, and professional credentials must all be included in the communication.
There are no regulations in Djibouti labor laws regarding severance payment.
Probationary periods for indefinite-term contracts are allowed as follows. For hourly employees, probation lasts for 15 days. For monthly wage employees, probation lasts for 1 month. For supervisors, executives, and equivalent positions, probation lasts for 3 months. Probationary periods may be renewed once, and the renewal must be in writing.