In Saint Barthélemy, the termination of an employment contract requires adherence to specific notice periods outlined in the French Labour Code (Code du travail), which is applicable to overseas territories like Saint Barthélemy through Article L.721-1.

Notice Period Length

The length of the notice period depends on factors like the type of contract and the employee's seniority.

• Fixed-term contracts (CDD): Notice periods for CDD contracts are generally shorter and are stipulated in the contract itself.
• Open-ended contracts (CDI): The notice period for CDI contracts is determined by the employee's seniority with the company:
  • Less than six months: Minimum notice period of one month.
  • Between six months and one year: Minimum notice period of two months.
  • More than one year: Minimum notice period of three months.

These are the minimum legal requirements. Employment contracts or collective bargaining agreements can stipulate longer notice periods, which must be respected by both the employer and the employee.

Notice Period Initiation

The notice period can be initiated by either the employer or the employee. It begins on the first working day following the notification of termination.

Garden Leave During Notice Period

Employers have the right to place an employee on garden leave during the notice period. This restricts the employee from working for the company but requires the continued payment of their salary and benefits. However, there should be a legitimate reason for garden leave, such as protecting company confidentiality or preventing disruption during the handover period.

In Saint Barthélemy, employees may be entitled to severance pay upon termination of their employment contract, provided they meet certain conditions as stipulated by the French Labour Code (Code du travail).

Eligibility for Severance Pay

To be eligible for severance pay, an employee in Saint Barthélemy must meet the following criteria:

• The termination must be initiated by the employer for reasons unrelated to serious misconduct or gross negligence by the employee. This includes dismissals due to economic reasons or reorganizations within the company.
• The employee must have worked for the employer for a minimum of eight months.

Severance Pay Calculation

The calculation of severance pay is based on the employee's salary and seniority. The base salary used for calculations includes all fixed components of the employee's remuneration. The longer the employee's tenure with the company, the higher the severance pay.

The severance pay calculation formula is as follows:

• For employees with less than 10 years of seniority, it's 1/4 of the average monthly salary for each year of employment up to 10 years, and 1/3 of the average monthly salary for each year of employment beyond 10 years.
• For employees with 10 or more years of seniority, an additional 1/15 of the average monthly salary is added to the standard calculation for each year of employment beyond 10 years.

For example, an employee with 5 years of seniority and whose average monthly salary is €2,500 would be entitled to a severance pay of €3125 upon dismissal.

Exceptions to Severance Pay

There are certain circumstances where employees in Saint Barthélemy are not entitled to severance pay:

• Voluntary resignation by the employee.
• Termination due to serious misconduct or gross negligence.
• The expiry of a fixed-term contract (CDD) without renewal, unless there are specific clauses in the contract.
• Employees who leave employment due to retirement.

The termination of employee contracts in Saint Barthélemy follows a structured process in accordance with the French Labour Code (Code du travail) to ensure fairness and legal compliance.

Pre-Termination Phase

In the pre-termination phase, there are two key steps. The first is the optional Prior Convocation Meeting. For dismissals on personal grounds, such as disciplinary reasons or unsuitability of the employee, the employer must invite the employee to a pre-termination meeting. This meeting allows the employee to present their defense against the proposed termination.

The second step is the Notification of Termination. The employer must notify the employee of the decision to terminate their contract via a written dismissal letter sent by registered mail. This letter should clearly outline the reasons for dismissal.

Post-Termination

After termination, the employer must provide the employee with their final paycheck, including all outstanding salaries, accrued holidays, and any other applicable benefits. They must also provide the following documents:

• Certificate of Employment
• Receipt for Balance of All Accounts
• Documents for Unemployment Benefits

Additional Considerations

Some sectors or companies may have additional provisions regarding employment termination that are outlined in their collective bargaining agreements. These agreements must always respect the minimum legal requirements set by the French Labour Code.