In Sao Tome and Principe, the Labour Law, although not specifically outlining notice periods, establishes a general timeframe for notice required during termination of an employment contract.

Notice Period Length

The standard notice period in Sao Tome and Principe is one (1) month. This applies to both employers and employees initiating termination.

However, the length of employment does affect the notice period:

• For less than 3 years of service, the one-month notice period applies.
• For more than 3 years of service, employers are required to provide a two (2) month notice period.

While the Labour Law doesn't explicitly mention this differentiation, it's a common practice adopted in the country.

In Sao Tome and Principe, employees are entitled to severance pay under specific circumstances. The legal framework for this is established within the Labour Law of Sao Tome and Principe.

Eligibility for Severance Pay

Employees become eligible for severance pay after completing at least one year of continuous service. Severance pay typically applies when the employer initiates termination due to reasons other than gross misconduct or reasons attributable to the employee.

Severance Pay Calculation

The severance pay calculation in Sao Tome and Principe is as follows:

• One month's salary for each year of service: Employees are entitled to receive one month's base salary for each completed year of service with the company.

Example

If an employee has worked for a company for five years and their monthly salary is 10,000 Dobras, their severance pay would be:

5 years of service * 10,000 Dobras/month = 50,000 Dobras.

In Sao Tome and Principe, the termination of an employment contract must adhere to specific legal guidelines outlined in the Labour Law of Sao Tome and Principe to ensure fairness and prevent potential labor disputes.

Termination for Cause

Employers can terminate an employee for cause due to reasons such as gross misconduct, repeated breaches of contract, performance issues (after a documented period of warnings and improvement plans), and economic or structural reasons (e.g., redundancy). The employer must provide a written explanation outlining the specific reasons for termination.

Termination Without Cause

Employers can terminate an employment contract without cause but must adhere to the legally stipulated notice periods.

Employee Rights

Employees must be given the chance to respond to any allegations or reasons cited for termination prior to the termination becoming effective.

Best Practices

It's highly recommended for employers to consult with a lawyer specializing in labor law to ensure compliance and mitigate risks of legal challenges. Meticulous documentation of performance issues, warnings, improvement plans, and the termination process itself is crucial for protecting the employer's interests in case of a dispute.