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Termination and Severance Policies

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

Notice period

In Greenland, the Salaried Employees Act outlines the legal requirements for notice periods during employment termination. These requirements vary depending on the employee's length of continuous service.

Notice Periods for Employers

The duration of the notice period that an employer must provide is dictated by the length of the employee's employment:

  • For employment of less than 6 months: No statutory minimum notice period is required.
  • For employment of 6 months to 3 years: The employer must provide a minimum of 3 months' notice.
  • For employment of 3 to 6 years: The employer's notice period increases to 4 months.
  • For employment of 6 to 9 years: The notice period extends to 5 months.
  • For employment of 9 years or more: The maximum notice period of 6 months applies.

Notice Periods for Employees

Regardless of their length of service, an employee can terminate the employment agreement with one month's notice to the end of a month.

Severance pay

Severance pay in Greenland is not a common practice, and there are no general statutory requirements for it. However, there are certain specific situations in which an employee may become entitled to severance pay.

Contractual Severance Pay

Employers and employees may agree to a severance pay clause within an employment contract. This would dictate the conditions under which severance pay is granted and the amount. If a collective bargaining agreement covering the employee includes stipulations for severance pay, those rules govern eligibility and amounts.

Severance Pay for Economic, Operational, or Structural Reasons

Under Greenlandish labor law, if an employer terminates an employee with at least 8 years of continuous service due to economic, operational, or structural reasons, the employee may be eligible for severance pay. The exact terms for eligibility and compensation are typically outlined in the applicable collective bargaining agreement.

Termination process

In Greenland, both employers and employees have the right to terminate an employment relationship. However, specific legal procedures, as detailed in the Salaried Employees Act, exist to ensure fair termination practices.

Termination by the Employer

  1. Valid Reasons: In Greenland, an employer can typically terminate employment for the following reasons:

    • The employee's personal circumstances (e.g., lack of qualifications, unsatisfactory performance)
    • Economic, operational, or structural reasons
    • Breach of contract on the employee's part
  2. Written Notice: The employer must provide formal written notice of termination, outlining the reasons for termination and the effective termination date.

  3. Dismissal with Immediate Effect: In cases of serious misconduct, the employer may dismiss an employee without notice. This immediate dismissal must be justified.

Termination by the Employee

  1. Written Notice: Although not strictly required by law, it is strongly recommended that the employee provide written notice of their intention to resign.

Additional Considerations

  • Collective Bargaining Agreements: If the workplace falls under a collective bargaining agreement, it might include specific rules and procedures for termination that must be followed.
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