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Falkland Islands (Malvinas)

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Falkland Islands (Malvinas)

Notice period

In the Falkland Islands, the Employment Protection Ordinance 1989 outlines the legal requirements for notice periods during employment termination. The Ordinance dictates the minimum notice an employer must provide an employee when terminating their contract, based on the employee's continuous service.

Minimum Notice Periods by Employer

The minimum notice periods are as follows:

  • Less than 2 years: For employees with at least one month of continuous service, but less than 2 years, the minimum notice period is 1 week.
  • 2 years or more but less than 12 years: Employees who have been continuously employed for 2 years or more, but less than 12 years, are entitled to a minimum notice period of 1 week for each year of service.
  • 12 years or more: If an employee has been continuously employed for 12 years or more, the minimum notice period is capped at 12 weeks.

For example, an employee who has been continuously employed for 5 years must be given a minimum notice period of 5 weeks (1 week per year of service).

It's important to note that these are the minimum legal requirements. An employment contract can stipulate a longer notice period, which would supersede the minimums outlined in the Ordinance.

Severance pay

In the Falkland Islands, severance pay is known as redundancy pay. This is determined according to the Employment Protection Ordinance 1989.


An employee qualifies for redundancy pay under certain conditions as per section 19 of the Employment Protection Ordinance 1989:

  • The termination must be due to a genuine redundancy situation such as when a job role becomes unnecessary or in case of business closure.
  • The employee must have completed at least two years of continuous service with the employer.

Calculation of Redundancy Pay

The calculation of redundancy pay is based on the Employment Protection Ordinance (section 20):

  • Redundancy pay is based on the employee's weekly wage.
  • The amount is determined by the length of continuous service:
    • 2-5 years: 1/2 week's pay for each year of service
    • 5-12 years: 1 week's pay for each year of service
    • 12+ years: 1 1/2 weeks' pay for each year of service


  • There is a maximum cap on redundancy payments, which is periodically revised.

Important Notes

  • Redundancy pay is not applicable in cases of resignation or dismissal due to misconduct.
  • An employer may offer a more generous redundancy package than the statutory minimum.

Termination process

In the Falkland Islands, employers are required to adhere to specific procedures to ensure the fair and legal termination of employment. These procedures are outlined in the Employment Protection Ordinance 1989.

Types of Termination

There are three main types of termination:

  • Dismissal with Notice: This occurs when the employer terminates the employment contract, providing the employee with the mandated notice period as per the Ordinance.
  • Dismissal without Notice (Summary Dismissal): This is immediate termination and is only permissible in limited circumstances, typically when there is gross misconduct on the part of the employee.
  • Constructive Dismissal: This happens when an employee resigns due to the employer's significant breach of contract terms, making continued employment unreasonable.

Grounds for Dismissal

The Ordinance outlines valid reasons for dismissal with notice:

  • Capability or Qualification: This refers to inadequate performance or lack of necessary skills.
  • Conduct: This refers to misconduct, excluding gross misconduct which warrants summary dismissal.
  • Redundancy: This refers to economic reasons or the role becoming obsolete.
  • Other Substantial Reasons: This is a catch-all category for compelling reasons that justify termination.

Procedural Fairness

Employers must ensure a fair termination process:

  1. Written Notice: The employer must provide a written notice outlining the termination reason(s) and effective end date.
  2. Opportunity to Respond: The employee should have a reasonable chance to respond to allegations, which could potentially affect the outcome of the dismissal.
  3. Right to Appeal: The employee should have a clear path to appeal the dismissal if they feel it is unjustified.

Wrongful Dismissal

A dismissal can be deemed wrongful if it is not carried out for a fair reason or without adhering to correct procedures. In such cases, the employee may be eligible for remedies, including reinstatement or compensation.

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