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Termination and Severance Policies

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

Notice period

In Fiji, the Employment Relations Act 2007 (ERA 2007) sets the minimum notice periods for termination of employment, which vary based on the employee's length of service.

Minimum Notice Periods

For employees who have been employed for more than one month but less than a year, the required notice period is one week. This applies to both employers and employees.

For employees with longer service, the minimum notice period increases:

  • For one year or more of service, four weeks' notice is required.

It's important to note that these are the minimum legal requirements. Employment contracts or collective agreements may stipulate longer notice periods.


There are a few exceptions to the minimum notice periods:

  • In cases of serious misconduct by the employee, employers can resort to summary dismissal, terminating employment immediately without notice.
  • If both employer and employee reach a mutual agreement on termination, they can decide on a shorter notice period or even waive the notice requirement altogether.

Payment in Lieu of Notice

Employers have the option to pay the employee their salary for the notice period instead of requiring them to work during that time. This is referred to as payment in lieu of notice.

Severance pay

In Fiji, specific laws dictate severance pay entitlements for employees whose employment is terminated due to redundancy.

Eligibility for Severance Pay

According to the Employment Relations Act 2007 (ERA 2007), an employee in Fiji is eligible for severance pay if their employment is terminated due to redundancy. Redundancy typically refers to situations where an employee's position becomes obsolete or the employer's business is facing economic difficulties.

Calculation of Severance Pay

The ERA 2007 outlines the calculation for severance pay as follows:

  • One week's pay for each complete year of service. A week's pay is based on the employee's regular wages at the time of termination.

Important Considerations

  • Casual and Part-Time Workers: Generally, casual and part-time workers are not entitled to severance pay.
  • Collective Agreements and Contracts: Collective bargaining agreements or individual employment contracts may provide for more generous severance packages than the statutory minimum.
  • No Double Payment: Employees are not entitled to both severance pay and payment in lieu of notice.

Termination process

The termination of employees in Fiji is governed by the Employment Relations Act 2007 (ERA 2007). This process involves several key steps and legal considerations.

Types of Termination

There are different types of termination:

  • Termination with Notice: Both employers and employees can terminate an employment contract by providing the legally required notice.
  • Summary Dismissal: Employers may immediately terminate employment without notice in cases of serious misconduct by the employee. The ERA 2007 outlines specific grounds for summary dismissal.
  • Termination due to Redundancy: If an employee's position becomes redundant, the employer must follow specific procedures outlined in the ERA 2007.

Procedural Requirements

Certain procedural requirements must be followed:

  • Notice: Employers must provide the required notice in writing. The notice should clearly state the reason for termination and the effective termination date.
  • Right to Challenge: Employees can challenge a dismissal if they deem it unfair or unjustified. Disputes can be mediated or taken to the Employment Relations Tribunal.

Grounds for Unfair Dismissal

The ERA 2007 provides protection against unfair dismissal. Some common grounds for challenging a dismissal as unfair include:

  • Lack of proper notice
  • Discrimination (based on factors like race, religion, gender, pregnancy, etc.)
  • Retaliation (e.g., dismissal for raising a grievance)

Important Considerations

There are also important considerations to keep in mind:

  • Collective Agreements and Individual Contracts: Always consult relevant collective agreements or individual employment contracts, as they may contain additional provisions or requirements related to termination processes.
  • Legal Advice: If you have concerns about the legality or fairness of a termination, it is advisable to seek legal counsel from a qualified employment lawyer in Fiji.
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