In Saint Helena, Ascension, and Tristan da Cunha, the Employment Ordinance, 2017 (EO) is the primary legal framework governing notice periods during employment termination. The EO distinguishes between two types of notice periods: Employer Notice and Employee Notice.

Employer Notice Periods

According to Section 38 of the EO, the minimum notice periods employers must provide to employees based on their length of service are as follows:

• For employees who have served less than two years, the notice period is one month.
• For employees who have served two or more years, the notice period is two months.

Exceptions to Employer Notice Periods

There are certain exceptions where employers may not be required to provide full notice:

• In cases of serious misconduct by the employee, employers can dismiss them summarily without notice (Section 39 of the EO).
• If a termination is due to redundancy, the EO allows for variations in notice periods through collective bargaining agreements (Section 40 of the EO).

Employee Notice Periods

Section 41 of the EO sets the minimum notice periods employees must provide employers when resigning:

• For employees who have served up to one month, the notice period is one week.
• For employees who have served more than one month but less than two years, the notice period is one month.
• For employees who have served two or more years, the notice period is two months.

The EO allows for longer notice periods to be specified in employment contracts, which would supersede the minimums outlined above.

Additional Considerations

• The EO emphasizes that notice periods should be provided in writing (Section 38(3) of the EO).
• Employers can choose to pay employees in lieu of providing the required notice period.

In Saint Helena, Ascension and Tristan da Cunha, severance pay, also known as redundancy pay, is not typically required by law. However, there are certain situations where an employee may be entitled to it.

Circumstances for Severance Pay

• Redundancy: According to the Employment Ordinance, 2017 (EO), provisions for severance pay, referred to as redundancy pay, are outlined when an employee's job becomes genuinely redundant. The eligibility and amounts are determined based on the employee's length of service and pay rate.

• Employment Contract: If an employment contract includes specific clauses about severance pay that exceed any legal minimums, the employer is obligated to adhere to the terms of the contract.

• Company Policy: Some employers may have internal policies that offer severance packages, even if they are not legally required to do so.

Severance Pay in Business Closure

In the event of a business closure in St. Helena, some employers may choose to offer severance packages to their departing employees.

Important Factors to Consider

• Definition of Redundancy: To qualify for redundancy pay under the EO, the termination must be a result of a genuine redundancy situation, meaning the job itself is eliminated, not just the individual.

• Calculation: When applicable, severance pay calculations in St. Helena usually take into account factors such as an employee's length of service and their pay rate.

There are three main types of termination: Termination by Employer, Resignation by Employee, and Termination by Mutual Agreement.

Termination by Employer

The employer may terminate an employee's contract, provided they follow the requirements outlined in the Employment Ordinance 2017 (EO). This includes termination with notice and summary dismissal. Immediate termination without notice is permitted in cases of the employee's gross misconduct.

Resignation by Employee

Employees are entitled to resign from their positions. They must provide their employer with the appropriate notice period.

Termination by Mutual Agreement

Employers and employees may mutually agree to terminate the employment contract, often with specific terms outlined in a settlement agreement.

Termination Procedure (Employer-Initiated)

The EO provides guidelines for fair termination procedures. If termination is for cause (misconduct, performance issues), the employer should maintain detailed documentation supporting the reasons for termination. The employer must provide the employee with written notice of termination. The employee has the right to request a hearing to discuss the reasons for termination. All outstanding wages and benefits owed to the employee must be paid promptly upon termination.

Important Considerations

Specific provisions in the EO govern termination due to redundancy. If an employer makes working conditions intolerable, forcing an employee to resign, it may be considered constructive discharge, giving the employee potential grounds for legal action. Terminations cannot be based on discriminatory grounds protected by St. Helena's equality laws, nor can they be used as retaliation for an employee exercising their workplace rights.