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Saint Pierre and Miquelon

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Saint Pierre and Miquelon

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Notice period

In Saint Pierre and Miquelon, a territorial collectivity of France, French metropolitan labor law is followed for most employment regulations, including the legal requirements for notice periods during employment termination.

Minimum Notice Periods

French labor law outlines minimum notice periods based on employee seniority, applicable to both employer and employee terminations unless a more favorable provision exists in the employment contract or a collective bargaining agreement. These minimums are:

  • Less than 6 months of service: Notice period applicable for resignation applies.
  • 6 months to less than 2 years of service: One month notice period.
  • 2 years or more of service: Two month notice period.

Notice Period for Employee Resignation

During an employee-initiated termination (resignation), the minimum notice period is:

  • Probation period:
    • Less than 8 days worked: 24 hours notice.
    • More than 8 days worked: 48 hours notice.
  • After probation period: Three months notice.

Exceptions to Minimum Notice Periods

The minimum notice periods can be extended through collective bargaining agreements or individual employment contracts, but cannot be shortened by the employer. In cases of serious misconduct by the employee, immediate dismissal without notice period may be permissible, following specific procedures outlined in the French Labor Code.

Importance of Employment Contract and Collective Bargaining Agreements

While the minimum notice periods provide a baseline, it's crucial to consult the specific terms of the employment contract and any applicable collective bargaining agreements. These documents might stipulate different notice period durations, potentially more favorable to either the employer or the employee.

Please note that this guide provides a general overview based on French labor law. Specific situations or regional variations might necessitate consulting a qualified legal professional for in-depth guidance.

Severance pay

Severance pay, also known as indemnité de licenciement, in Saint Pierre and Miquelon is regulated by French labor law.

Eligibility for Severance Pay

An employee must meet certain criteria to be eligible for severance pay:

  • The employee must have worked for the same employer continuously for at least 8 months.
  • The termination of the employee must be involuntary by the employer, excluding termination for serious misconduct.

Calculating Severance Pay

There are two main methods of calculating severance pay, and the employer must choose the one that is most favorable to the employee:

Calculation 1 – Based on Length of Service

This calculation involves multiplying the monthly gross salary by 1/4 and the years of service, plus 1/10th per year of service after 10 years.

Calculation 2 – Fixed Minimum Rate

This calculation involves at least 1/5th of the monthly gross salary per year of service with a minimum of 1/3rd of the monthly gross salary, depending on applicable collective bargaining agreements.

Additional Provisions

The calculation of severance pay must exclude overtime pay, bonuses, benefits in kind, and end-of-contract payments. An optional contractual termination agreement may result in a higher severance pay than the legal minimum.

Severance Pay Exemptions

Certain types of employment may be exempt from severance pay entitlements:

  • Specific types of temporary or fixed-term contracts.
  • Specific industries under different regulations established by collective bargaining agreements.

This is a general overview of severance pay regulations in Saint Pierre Miquelon. For specific details or situations, it's advisable to consult the French Labor Code (Code du travail) and any applicable collective bargaining agreements.

Termination process

Terminating an employee's employment contract in Saint Pierre and Miquelon requires adherence to a specific legal process. There are different types of termination, including termination by the employer (Licenciement), resignation by the employee (Démission), and agreed termination (Rupture Conventionnelle).

Types of Termination

  • Termination by the Employer (Licenciement): This can be for reasons related to the employee's conduct (personal reasons) or for economic reasons. Dismissal for serious misconduct (faute grave) results in immediate termination.
  • Resignation by the Employee (Démission): The employee voluntarily terminates the employment relationship.
  • Agreed Termination (Rupture Conventionnelle): A mutual agreement between the employer and employee to end the employment contract amicably, with terms outlined in an agreement.

Termination by the Employer

The termination process by the employer involves a preliminary notice, a pre-dismissal interview, and a notification of dismissal.

  1. Preliminary Notice: The employer must issue a letter summoning the employee to a pre-dismissal interview clarifying the reasons for termination and allowing the employee to prepare their defense.
  2. Pre-Dismissal Interview: This meeting provides a platform for the employee to provide justifications or explanations. The employer subsequently has at least two working days to decide whether or not to proceed with the dismissal.
  3. Notification of Dismissal: If the employer proceeds with the termination, a formal termination letter must be sent by registered mail, outlining the reasons for termination.

Key Procedural Requirements

There are key procedural requirements to adhere to, such as respecting disciplinary procedures in cases of misconduct-related dismissals, including providing proof and allowing the employee to defend themselves. Also, seeking prior authorization from the labor inspector in specific cases, such as the dismissal of a protected employee.

Special Cases

There are special cases such as collective redundancies where stricter rules apply, often involving consultation with employee representatives and the development of social plans. It's important to note that the termination process might vary slightly based on specific industry regulations outlined in collective bargaining agreements relevant to Saint Pierre and Miquelon.

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