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Sierra Leone

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Sierra Leone

Notice period

In Sierra Leone, the Employment Act of 2023 outlines the legal requirements for notice periods.

Minimum Notice Periods

The Act establishes minimum notice periods that either party (employer or employee) must provide before termination (Section 107 of the Employment Act, 2023). The notice period depends on the following factors:

  • Unlimited Employment Contracts:

    • Employer: A minimum of 30 days' notice is required (Section 107(1) of the Employment Act, 2023).
    • Employee: Similar to the employer, a minimum of 30 days' notice must be provided (Section 107(1) of the Employment Act, 2023).
  • Fixed-Term Employment Contracts: Notice is not required at the end of the predetermined term (Section 107(2) of the Employment Act, 2023).

  • Probationary Period:

    • Employer: During the probation period (up to 6 months), a minimum of 5 days' notice is required (Section 107(3) of the Employment Act, 2023).
    • Employee: No minimum notice period is specified for the employee during probation.

Exceptions to Minimum Notice Periods

There are exceptions where the minimum notice periods might not apply:

  • Summary Dismissal: In cases of serious misconduct by the employee, employers can dismiss them summarily without notice (Section 109 of the Employment Act, 2023).
  • Mutual Agreement: Employers and employees can agree to terminate the contract with a shorter notice period or immediate effect, as long as the agreement is mutually acceptable (Section 106 of the Employment Act, 2023).

Payment in Lieu of Notice

The Act allows employers to pay the employee their wages in lieu of providing the required notice period (Section 107(1) of the Employment Act, 2023).

Important Considerations

  • Written Notice: The Act emphasizes that notice periods should be provided in writing (Section 107(4) of the Employment Act, 2023).
  • Collective Bargaining Agreements: Industry-specific collective bargaining agreements might supersede these minimum notice periods, so it's advisable to consult any applicable agreements.

Severance pay

Severance pay, also known as redundancy pay, is a form of compensation an employee may be entitled to when their employment is terminated due to certain circumstances. In Sierra Leone, severance pay entitlements are governed by the Employment Act of 2023.

Applicability of Severance Pay

Severance pay is specifically applicable in cases of redundancy, where a job is eliminated and not due to the employee's performance or conduct according to Section 124 of the Employment Act of 2023.

Eligibility Criteria

To be eligible for severance pay, the employee must have completed at least one year of continuous service with the same employer as per Section 124(1) of the Employment Act of 2023.

Calculation of Severance Pay

The Act outlines a formula for calculating severance pay based on the employee's length of service as per Section 124(2) of the Employment Act of 2023:

  • For 1-5 years of service: 30 days of wages for each completed year of service.
  • For 5-10 years of service: 40 days of wages for each completed year of service.
  • For over 10 years of service: An additional 7 days of wages for each completed year after 10 years.

Important Considerations

  • Definition of Redundancy: Redundancy means the position itself is eliminated, not just the individual.
  • Collective Bargaining Agreements: Some collective bargaining agreements may provide for more generous severance packages than the legal minimums.

Termination process

Termination of employment can occur under various circumstances. It can be initiated by the employer, the employee, or by mutual agreement.

Termination by Employer

The employer can terminate employment under certain conditions. These include serious misconduct by the employee, which may lead to summary dismissal without notice. Another scenario is redundancy, where the termination of an employee's position is due to genuine redundancy situations.

Resignation by Employee

An employee can also choose to resign from their job. This usually involves providing the employer with the appropriate notice period as per the Act or their employment contract.

Termination by Mutual Agreement

In some cases, the employer and employee can mutually agree to end the employment relationship. This often involves specific terms outlined in a settlement agreement.

Termination Procedure (Employer-Initiated)

The Act outlines guidelines for fair termination procedures. These include providing valid reasons for the termination and adhering to the legally mandated notice periods. The employee also has the right to a fair hearing, where they can present their side of the case. Upon termination, the employer must promptly pay all outstanding wages and benefits.

Important Considerations

There are several important considerations to keep in mind during the termination process. These include wrongful dismissal, constructive discharge, and discrimination and retaliation. Wrongful dismissal occurs when an employer terminates an employee without following the Act's legal procedures or without a valid reason. Constructive discharge refers to situations where an employer creates intolerable working conditions that force an employee to resign. Discrimination and retaliation are also prohibited by the Act.

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