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Cabo Verde

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Cabo Verde

Notice period

In Cabo Verde, the Labour Code (C贸digo do Trabalho, Lei n.潞 2/2007) stipulates the legal requirements for notice periods during employment termination. These requirements differ based on the party initiating the termination and the nature of the employment contract.

Notice Periods by Initiating Party

  • Termination by Employer (Fixed-Term Contracts Only): Employers can only terminate fixed-term contracts with notice. The minimum notice period is 10 days.

  • Important Note: If the employer fails to provide the required notice, they must compensate the employee for the number of missing days.

  • Termination by Employee: Employees with indefinite-term contracts must provide written notice to their employer before termination. The notice period is calculated based on the employee's length of service:

    • Minimum: 15 days
    • Maximum: 2 months

The notice period increases by 15 days for each year of service, capped at a maximum of 2 months.

  • Example: An employee with 5 years of service must provide 1 month (15 days + (4 years * 15 days)) notice before termination.

Exceptions to Notice Periods

There are a few exceptions where notice periods may not be required:

  • Mutual Agreement: If both employer and employee mutually agree to terminate the employment contract, no notice period is necessary.
  • Retirement: Upon reaching retirement age, the employment contract automatically terminates without a notice period.

Severance pay

In Cabo Verde, employees may be entitled to severance pay under specific circumstances. The Cabo Verdean Labour Code (C贸digo do Trabalho, Lei n.潞 2/2007) outlines these regulations, ensuring fair compensation for employees upon certain types of employment termination.

Circumstances Warranting Severance Pay

Employees dismissed due to economic, technological, or structural reasons within the company are entitled to severance pay. Additionally, if the employer terminates the employment contract without a valid reason, as outlined in the Labour Code, the employee is entitled to severance pay.

Calculation of Severance Pay

Severance pay in Cabo Verde is calculated based on the employee's length of service and their average monthly salary. The general rule is one month's salary for each year of service.

Important Considerations

Some collective bargaining agreements may provide for more generous severance pay entitlements, surpassing the legal minimum. However, employees dismissed for valid and serious reasons (e.g., misconduct, repeated absences), as outlined by the Labour Code, are not entitled to severance pay. When the employment contract is terminated by mutual agreement between the employee and employer, severance pay is generally not required unless previously negotiated.


If an employee in Cabo Verde has worked for a company for 8 years and is dismissed due to redundancy, they would be entitled to severance pay of 8 months' salary (8 years of service * 1 month's salary).

Termination process

In Cabo Verde, the termination of employment can occur under various circumstances, and the process is governed by the Cabo Verde Labour Code (C贸digo do Trabalho, Lei n.潞 2/2007).

Types of Termination

  • Dismissal with Cause: The employer terminates the contract with a valid reason, such as serious misconduct, repeated unjustified absences, or professional incompetence.
  • Redundancy: The employer ends the contract due to economic, technological, or structural reasons within the company.
  • Resignation: The employee voluntarily terminates the employment relationship.
  • Mutual Agreement: Both parties mutually consent to end the employment contract.
  • Expiration of Fixed-Term Contract: The contract automatically terminates upon reaching the end date of a fixed-term agreement.

Dismissal with Cause Procedure

  1. Written Notice: The employer must provide a written notice of dismissal, including a detailed explanation of the reasons for termination as outlined in the Labour Code.
  2. Employee's Right to Respond: The employee has the right to present their defense in response to the allegations.
  3. Labour Inspector's Involvement (Optional): Either party may request the involvement of a Labour Inspector for mediation.

Redundancy Procedure

  1. Consultation with Workers' Representatives: Employers must consult with workers' representatives before implementing a redundancy plan.
  2. Selection Criteria: Objective and fair criteria (seniority, skills, family responsibilities) must determine the employees affected by redundancy.

Resignation Procedure

  • Written Notice: Employees must provide written notice of resignation to their employer, respecting the notice period based on their length of service (minimum 15 days, maximum 2 months).

Mutual Agreement Procedure

  • Written Agreement: Both parties formalize the termination terms (date, severance if applicable, any special circumstances) in a written agreement.

Important Considerations

  • Notice Periods: Notice periods vary depending on the circumstances of termination and the employee's length of service.
  • Severance Pay: Severance pay entitlements depend on the type of termination.
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