In Rwanda, the labor law stipulates a minimum notice period that employers must provide when terminating an employment contract, unless a more favorable agreement is in place. This is as outlined in Law No. 66/2018 of 30/08/2018 Regulating Labour in Rwanda.

Notice Period Based on Length of Service

The notice period for termination is determined by the employee's length of service:

• For employees with less than one year of service, a minimum of 15 days' notice is required.
• For employees with more than one year of service, a minimum of 30 days' notice is required.

Exceptions to Notice Periods

There are exceptions to the mandatory notice periods. These include:

• Mutual Agreement: If both the employer and employee agree to terminate the contract, no notice period is necessary.
• Gross Misconduct: An employee who commits gross misconduct can be dismissed without notice. The employer must notify the employee within 48 hours of obtaining evidence of the misconduct, specifying the reason for termination.
• Probation Period: Probationary employment contracts can be terminated without notice by either party, unless otherwise stated in the contract.

Payment in Lieu of Notice

Employers can choose to pay the employee a lump sum equivalent to their salary and benefits during the notice period instead of providing the full notice period.

It's important to note that collective bargaining agreements or individual employment contracts may provide more favorable notice periods for employees than the minimums outlined in the law. Therefore, it's crucial to always refer to the specific terms of the employment contract for the most accurate notice period requirements.

Severance pay in Rwanda is a financial compensation provided to employees whose employment is terminated under specific circumstances. This entitlement is outlined in Law No. 66/2018 of 30/08/2018 Regulating Labour in Rwanda.

Eligibility for Severance Pay

Rwandan employees are eligible for severance pay if they have completed at least 12 consecutive months of service with the employer and their termination is due to economic reasons, technological transfer, or prolonged illness preventing them from performing their work.

Severance Pay Calculation

The calculation of severance pay in Rwanda is based on the employee's average monthly salary and their length of service. For less than 5 years of service, the severance pay is 2 times the average monthly salary. For 5 - 10 years of service, it's 3 times the average monthly salary. For 10 - 15 years of service, it's 4 times the average monthly salary. For 15 - 20 years of service, it's 5 times the average monthly salary. And for 20 - 25 years of service, it's 6 times the average monthly salary. The average monthly salary is determined by dividing the employee's total salary for the last 12 months, excluding work-related allowances, by 12.

Exceptions to Severance Pay

There are exceptions to the entitlement of severance pay. Employees are not entitled to severance pay if their employment contract is terminated due to gross misconduct, as defined by Ministerial Decree, or if they resign from their positions voluntarily.

Terminating an employee in Rwanda must be carried out lawfully and in accordance with the requirements outlined in Law No. 66/2018 of 30/08/2018 Regulating Labour in Rwanda.

Valid Grounds for Termination

Employers in Rwanda must have a valid reason for terminating an employment contract. Legitimate reasons for termination as stipulated by the law include:

• Economic reasons
• Technological changes
• Prolonged illness (incapacity to perform work tasks)
• Mutual agreement between employer and employee
• Gross misconduct by the employee

Written Notice of Termination

Except in the case of gross misconduct, employers must give written notice before terminating an employee's contract. The notice must specify the following:

• The reason for termination.
• The effective termination date.

Gross Misconduct and Immediate Termination

An employer may terminate the employment contract of an employee immediately and without notice in the case of gross misconduct. Common examples of gross misconduct include:

• Theft or fraud
• Violence or threats in the workplace
• Being intoxicated on the job
• Sexual harassment

The employer must notify the employee of the dismissal within 48 hours, specifying the grounds for termination.

Additional Procedural Requirements

• Consultation with the Labor Inspector: Before terminating an employee with one year or more of service, the employer must inform the Government Labor Inspector within 15 days.
• Final Pay: The employer must pay all outstanding salary and benefits upon termination.

Important Note: Individual employment contracts and collective bargaining agreements may provide additional procedures and rights for both employers and employees during the termination process. Always consult the specific terms of the agreement to ensure full compliance.