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Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Chad

Notice period

Chadian Labor Law sets out the compulsory notice periods for terminating an indefinite term employment contract, which varies based on the employee's length of service.

Notice Periods Based on Length of Service

  • Less than one year: The minimum notice period for employees who have been employed for less than one year is 15 days.
  • Between one and three years: Employees with a service record between one and three years are entitled to a one-month notice period.
  • More than three years: The notice period extends to two months for employees who have served for more than three years.

The notice period begins on the day the employee receives the written notification of termination, either delivered by hand or sent to their home address.

Exceptions: Termination Without Notice

There are specific circumstances under which Chadian Labor Law allows for immediate termination of employment contracts without a notice period:

  • Serious Misconduct: This includes actions that significantly breach the employment contract or endanger the workplace.
  • Force Majeure: Events beyond the control of either party, such as natural disasters or war, that make continued employment impossible.
  • Mutual Agreement: Both employer and employee can agree to terminate the contract without notice.

Fixed-Term Contracts

Fixed-term contracts typically end automatically upon reaching the predetermined end date without requiring a notice period. However, the renewal terms of fixed-term contracts should be clearly outlined in the initial agreement.

Severance pay

In Chad, labor laws dictate that employees are entitled to severance pay in certain situations, primarily in cases of economic or restructuring-related dismissals.

Economic and Restructuring Dismissals

Employees with a minimum of five years of continuous service in a company are entitled to severance pay if they are dismissed for economic reasons or as part of company restructuring. The calculation of severance pay in Chad is based on several factors, including the employee's length of service and their base salary.

Other Instances of Severance Pay

There are other instances where employees may be entitled to severance pay. For example, employees who involuntarily lose their job during the probationary period may be entitled to some form of severance or compensation, with the amount determined by their contract or negotiation. In certain negotiated situations of voluntary redundancy with company restructuring, an employee may be eligible for a severance package outlined in a social plan.

Limited Severance in Other Termination Scenarios

Chad's labor laws do not generally require severance pay in the following situations:

  • Termination due to employee misconduct or resignation
  • Termination of a fixed-term contract at the end of its term
  • Termination based on mutual agreement

Importance of Contracts and Social Plans

It's important to note that specific terms relating to severance pay may be outlined in employment contracts or social plans negotiated during company restructuring. These provisions can supplement or exceed the legal minimums.

Termination process

The Chadian Labor Code provides several valid reasons for terminating an employment contract. These include economic or technological reasons, force majeure, employee misconduct, mutual agreement, and completion of a fixed-term contract.

Termination Procedure

The termination process involves several steps. Firstly, the employer must provide a clear and written explanation for the termination, outlining the specific grounds. The employee then has the opportunity to contest the termination and provide their perspective on the situation. If a dispute arises, either party can involve the Labor Inspector to mediate and ensure compliance with labor laws.

Exceptions to Notice and Severance

In cases of serious misconduct, such as theft, fraud, violence or threats in the workplace, willful damage to company property, or serious breaches of professional secrecy, an employer may dismiss an employee without notice or severance pay.

Additional Considerations

If an employer needs to lay off a significant number of employees, specific procedures and consultations with employee representatives or unions may be required. It is also illegal to terminate an employee based on discriminatory grounds such as gender, race, religion, or disability.

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