In Cuba, specific notice periods are required for both employers and employees when terminating an indefinite-term employment contract, as outlined in the Labor Law (Decree-Law No. 128/2014).

Employer Obligations

Cuban employers are required to provide written notice to the employee before termination. For indefinite contracts, employers must give employees 30 days' written notice before termination.

Employee Obligations

Similarly, employees wishing to resign from an indefinite-term contract must provide written notice to their employer. The required notice period for employees is also 30 days' written notice before resignation.

Temporary Contracts

For temporary contracts (not exceeding 2 years) established for specific projects, training, or seasonal work, a different notice period applies. In these cases, both employers and employees must provide 15 days' written notice before termination or resignation, respectively.

Key Points

The Labor Law emphasizes the importance of written communication for both employer and employee during the termination process. Notice periods are designed to allow for a smoother transition, facilitating knowledge transfer, handover of responsibilities, and the employee's job search.

Additional Considerations

While the Labor Law sets the minimum notice periods, employment contracts can stipulate longer notice periods if both parties agree.

In Cuba, severance pay entitlements are limited, even when the employer terminates the employment relationship.

Entitlement

Severance pay in Cuba is provided only in specific situations:

• Dismissal Due to Organizational Change: If an employee is dismissed due to restructuring, technological changes, or other economic reasons beyond their control, they are entitled to one month's basic salary as severance pay.

• Completion of Military Service: Employees who complete mandatory military service are entitled to severance pay equal to one month's basic salary. Note that Cuba is gradually phasing out mandatory military service.

Calculating Severance Pay

Severance pay in Cuba is calculated using the employee's basic salary at the time of termination.

Limitations

There are certain limitations to severance pay in Cuba:

• No Severance for Voluntary Resignation: Employees who resign voluntarily are not entitled to severance pay.

• No Severance for Disciplinary Dismissal: Employees dismissed for disciplinary reasons forfeit any severance payment.

Important Notes

Cuban law largely focuses on employment within the state sector. Different regulations may apply for specific non-state employment. The primary legal sources for severance pay entitlements in Cuba are the Labor Law and Resolution 4, Ministry of Labor and Social Security.

In Cuba, the termination process of employees is unique, focusing on returning workers to an employment pool, a process known as "devolución".

Grounds for Termination

As per Article 45 of the Cuban Labor Code, employment contracts can be terminated due to several reasons. These include mutual agreement between the employer and employee, initiative of either party, retirement or death of the worker, extinction of the entity, and expiration of a fixed-term contract.

The Devolución Process

Cuban law emphasizes on returning employees to a broader hiring pool instead of outright firing. The process begins with the employer's request stating reasons for the termination. The original hiring entity, often a state-run agency, is involved in finding a new suitable placement for the employee, if possible. The worker maintains the right to challenge the termination if they believe it to be unjustified.

Additional Considerations

During the probationary period, which usually lasts between 30-180 days, either party can terminate the employment more easily. Companies with foreign investment may have slightly different regulations, though the general principles of devolución and labor protections still apply.