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Djibouti

Termination and Severance Policies

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

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Notice period

In Djibouti, the Labour Code outlines the legal requirements for notice periods in employment termination scenarios. The minimum notice period an employer must provide depends on the employee's position.

Notice Periods by Position

For employees in regular positions, the employer must provide one month's written notice. Employees in supervisory roles, managerial positions, or positions with similar responsibilities are entitled to a longer notice period of three months.

The notice period must be provided in writing and specify the reason for termination. The notice period should clearly state the termination date, which should fall at the end of the calendar month. For instance, a notice given on November 1st would result in termination on December 31st.

Exceptions to Notice Periods

During the probationary period (typically up to three months for indefinite contracts and two months for fixed-term contracts), neither party is required to provide notice for termination. In cases of serious misconduct by the employee, the employer can terminate employment immediately without notice.

Employee Notice Periods

Employees in Djibouti are generally required to provide one month's written notice when resigning.

Severance pay

In Djibouti, the Labour Code (Code du Travail de la République de Djibouti) outlines the regulations for severance pay entitlements for employees.

Conditions for Severance Pay

Severance pay is generally applicable when the employer initiates the termination of the employment contract, barring cases of serious misconduct by the employee. Additionally, employees must have completed a minimum period of continuous service with the same employer to be eligible for severance pay.

Severance Pay Calculation

The severance pay an employee is entitled to is calculated based on their length of service:

  • For less than 1 year of service, the employee is entitled to one month's salary.
  • For 1 to 5 years of service, the employee is entitled to two months' salary.
  • For more than 5 years of service, the employee is entitled to three months' salary.

Important Notes

Employees who resign from their positions generally do not receive severance pay, except in cases of constructive dismissal. Some collective agreements may contain provisions for severance pay schemes that exceed the statutory minimums. Employers are required to pay severance along with any remaining salary at the time of termination.

Termination process

In Djibouti, the termination process must adhere to the Labor Code (Code du Travail de la République de Djibouti) to ensure legal compliance and fairness.

Types of Termination

There are three types of termination:

  1. Employer-Initiated Termination (Dismissal): This occurs when the employer terminates the employment contract. The employer must have justifiable reasons for dismissal, such as economic or organizational difficulties in the company, the employee's incapacity or incompetence, repeated violations of employment contract terms, or serious misconduct.

  2. Employee-Initiated Termination (Resignation): This is when the employee voluntarily terminates the employment contract.

  3. Mutually Agreed Termination: This happens when both the employer and employee agree to terminate the employment relationship.

Employer-Initiated Termination (Dismissal)

The process for employer-initiated termination involves several steps:

  1. Valid Justification: The employer must have a valid reason for the dismissal as outlined in the Labour Code.

  2. Written Notice: The termination notice must be in writing and clearly state the reason for dismissal.

  3. Employee Rights: Employees have the right to request a written explanation for their dismissal and may challenge an unfair dismissal in court.

Employee-Initiated Termination (Resignation)

The process for employee-initiated termination involves the following steps:

  1. Written Notice: Employees must submit a written resignation letter to their employer.

Additional Requirements

Relevant collective agreements may include additional requirements or procedures related to termination. Additional protections might apply to certain categories of employees, such as pregnant employees or those on parental leave.

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