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Tunisia

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Tunisia

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Notice period

In Tunisia, the legal requirements for notice periods during employment termination are influenced by several factors.

Default Notice Period

Tunisian labor law mandates a minimum of one month's written notice for termination by either the employer or the employee.

Exceptions to the One-Month Notice

There are exceptions to the one-month notice period. If an employment contract or a collective bargaining agreement stipulates a longer notice period, that provision supersedes the one-month minimum. For instance, journalists, commercial travelers, and sales representatives might have extended notice periods outlined in their collective agreements. Additionally, an employer can dismiss an employee without notice or compensation in lieu of notice for severe misconduct proven through a disciplinary procedure.

Key Points Regarding Notice Periods

The notice of termination must be provided in writing. If proper notice isn't given, the party terminating the employment must compensate the other party with an amount equivalent to the wages payable for the remaining notice period. During the second half of the notice period, the employee has the legal right to take time off to search for new employment without any loss of salary.

Severance pay

In Tunisia, severance pay, or indemnité de licenciement, is a legal right for employees when their employment contract is terminated, barring certain exceptions. The rules governing severance are outlined in the Tunisian Labor Code (Code du Travail).

Eligibility for Severance Pay

Employees with indefinite-term contracts and those with fixed-term contracts, provided the termination occurs before the expiry of their contract and not due to serious misconduct, are entitled to severance pay. However, employees who resign or are dismissed due to serious misconduct, as defined by the Tunisian Labor Code, are not entitled to severance pay.

Calculation of Severance Pay

Severance pay is calculated as one day's pay for every month of employment, up to a maximum of three months' pay. For instance, an employee who has worked for 5 years and earns a monthly salary of 2000 Tunisian dinars would be entitled to 6000 TND severance.

Additional Entitlements

Upon termination, employees must be compensated for any unused vacation time. Depending on collective bargaining agreements or individual contracts, there may be additional severance-related benefits.

The primary legal source for employment law in Tunisia is the Tunisian Labor Code (Code du Travail), specifically Articles 14 and 15.

Termination process

In Tunisia, termination can be categorized into two: termination based on personal grounds (disciplinary) and termination based on economic/business reasons.

Termination on Personal Grounds (Disciplinary)

The process of termination on personal grounds involves several steps. Firstly, the employer must notify the employee of the intended dismissal, specifying the reasons for termination, in writing by registered letter or a personally delivered letter with acknowledgment of receipt as per the Tunisian Labor Code, Article 14. Secondly, the employee has the right to defend themselves, usually before a disciplinary council or committee. It's important to note that dismissing worker representatives or trade-union officers requires further procedures, including authorization from the labor inspector.

Termination on Economic Grounds

Termination on economic grounds also follows a specific process. The employer must seek conciliation through the Labor Inspectorate (Inspection du Travail). There is a maximum timeframe of 15 days for this process. If conciliation fails, the Labor Authority (Commission de Contrôle des Licenciements) issues an opinion within 15 days. Similar to disciplinary termination, the employer must notify the employee via registered letter or a personally delivered letter with acknowledgment of receipt.

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