In Madagascar, the labor law stipulates specific notice periods that must be adhered to during employment termination. These requirements are detailed in the Malagasy Code of Labor.

Variations in Notice Period

The notice period required is dependent on two primary factors:

• The professional classification of the employee (cadre vs. non-cadre).
• The duration of the employee's service with the company.

The Code du Travail legally mandates the minimum notice period, which starts at one day. This duration progressively increases based on the factors mentioned above.

Details of Notice Period

The Code du Travail outlines the variations in the notice period as follows:

• For Non-Cadre Employees:

  • If the service is less than six months, a minimum of one day's notice is required.
  • If the service is between six months to one year, the notice period is eight days.
  • If the service is more than one year, the notice period incrementally increases based on the years of service.

• For Cadre Employees:

  • The notice periods for cadre employees are generally longer than those for non-cadre employees with similar service durations. The Code du Travail provides specific details regarding the notice periods for cadre employees.

In Madagascar, severance pay laws are relatively limited compared to many other countries. According to the Code du Travail de Madagascar, severance pay is generally not a mandatory requirement upon employment termination. However, if an employee is laid off due to company restructuring or economic difficulties, they are entitled to severance pay.

Severance Pay Calculation

The severance amount in cases of economic layoffs is determined as follows according to the Code du Travail:

• Formula: Employees receive pay equivalent to 10 days of their wages for each full year of service they have completed with the company.
• Cap: Severance pay is capped at six months' worth of the employee's wages.

Considerations

• Collective Bargaining Agreements: Some collective bargaining agreements may contain provisions for severance pay above and beyond the legal requirements.
• Employment Contracts: Individual employment contracts may also include severance pay conditions. However, they cannot be less favorable than the terms outlined in the Code du Travail.

The employee termination process in Madagascar is governed by the Code du Travail de Madagascar and involves specific procedures to ensure fair and lawful terminations.

Types of Termination

There are three main types of termination:

1. Termination by Employer: The employer can terminate an employment contract for cause, such as serious misconduct or economic reasons, or at the end of a fixed-term contract.
2. Termination by Employee: The employee can resign from their position.
3. Mutually Agreed Termination: The employer and employee can mutually agree to terminate the employment relationship.

Termination for Cause by Employer

When an employer terminates an employee for cause, they must follow these procedural steps:

1. Written Notice of Termination: The employer must provide a written notice stating the reason(s) for termination.
2. Opportunity for Explanation: The employee has the right to provide an explanation or defense regarding the termination grounds.
3. Termination Letter: If the employer proceeds with the termination, they must issue a final termination letter.

Economic Layoffs

Terminations due to economic reasons require additional considerations:

• Consultation: Employers must engage in consultations with staff representatives before implementing layoffs.
• Selection Criteria: Objective and non-discriminatory criteria must be used for selecting employees for layoffs.

Important Notes

• Legal Counsel: It's highly recommended that employers seek legal counsel from a Malagasy employment lawyer to navigate the complexities of the termination process and ensure compliance with the Code du Travail.