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Equatorial Guinea

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Equatorial Guinea

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Notice period

In Equatorial Guinea, the Labor Law mandates a tiered system for notice periods during employment termination. The required notice period depends on the employee's length of service.

Notice Period Based on Service

  • 1 Week Notice: Employees who have been with the company for at least one month but less than six months must be provided one week's written notice before termination by either the employer or the employee.
  • 1 Month Notice: Employees who have completed six months or more of service require a one-month written notice for termination from either party.

Severance pay

In Equatorial Guinea, severance pay entitlements are determined based on an employee's years of service, as long as the termination is not due to the employee's misconduct.

Calculation of Severance Pay

The Equatorial Guinean Labor Law stipulates the calculation of severance pay as follows:

  • For 1 Year of Service: 1 month's salary
  • For 2 Years of Service: 2 months' salary
  • For 3 Years of Service: 3 months' salary
  • For Each Additional Year: An additional month's salary for each year of service.

To illustrate, an employee terminated after 6 years of service would be entitled to a severance payment equivalent to 6 months of their salary.

Situations Where Severance Pay May Not Apply

There are certain situations where severance pay may not apply:

  • Termination for Cause: Employees dismissed for serious misconduct, as specified in the Labor Law, may not be entitled to severance pay.
  • Resignation: Employees who voluntarily resign from their positions generally do not receive severance pay.

Termination process

In Equatorial Guinea, the termination process for employees can be categorized into termination by the employer and termination by the employee.

Termination by Employer

The employer can terminate an employee either with cause or without cause. Termination with cause is based on specific grounds outlined in the Labor Law of Equatorial Guinea, such as serious misconduct, repeated negligence, or other valid reasons established within the law. On the other hand, termination without cause is also possible, but it often necessitates the payment of severance. In cases of collective dismissals involving a significant number of employees, the employer might need to obtain authorization from labor authorities.

Termination by Employee

Employees have the right to resign at any time. Formal written notice is generally expected.

Process and Documentation

Termination of employment in Equatorial Guinea should ideally be communicated in writing. The notice should clearly outline the reasons for termination and the effective date. In certain situations, such as collective dismissals, the employer might be required to notify the relevant labor authorities in advance.

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