In Yemen, the notice periods required for employment termination are dictated by the Yemeni labor law. These periods vary depending on the type of termination and the party initiating it.

Legal Framework

The Labor Law No. 65 of 1995 (Yemeni Labor Law) is the primary legal reference for notice periods in Yemen.

Notice Periods by Termination Type

The Yemeni Labor Law (Articles 40 & 41) outlines different notice periods for termination initiated by the employer or the employee:

• Employer-Initiated Termination:

  • Employers must provide written notice to the employee in advance of termination. The notice period depends on the employee's length of service:
    • Less than one year: No minimum notice required.
    • One to five years of service: One month's notice.
    • More than five years of service: Two month's notice.

• Employee-Initiated Termination:

  • Employees are required to provide written notice to the employer, with the notice period determined by their service:
    • Less than one month: No minimum notice required.
    • One month to three months of service: Notice period equals half the length of employment.
    • More than three months of service: One month's notice.

Important Considerations

• The Yemeni Labor Law allows for exceptions to the notice periods through collective bargaining agreements that supersede the minimums.
• The notice period commences from the day the written notice is received by the other party (Articles 40 & 41).
• During the notice period, both employer and employee are generally obligated to fulfill their contractual duties.

In Yemen, severance pay entitlements are governed by the Yemeni Labor Law No. 5 of 1995. The main conditions for severance pay, also known as end-of-service gratuity, are set forth in Article 120(2) of this law.

Eligibility for Severance Pay

Severance pay is mandatory in Yemen under certain conditions. These include termination of employment, which encompasses situations where the employee resigns, is dismissed (except for gross misconduct), or the employment contract ends. Additionally, severance pay applies to employees who aren't entitled to a pension or lump-sum payment under the Social Insurance Act or other relevant regulations.

Calculation of Severance Pay

The severance pay amount is calculated based on the length of service and the final salary. Employees are entitled to one month's wages for every year of service. The severance calculation uses the employee's last received wage.

Additional Factors

There are additional factors that can affect severance pay. If an employee is terminated due to gross misconduct, they generally forfeit their right to severance pay. However, employees dismissed without a valid reason may be entitled to compensation of up to six months' wages, as determined by an arbitration committee or court.

Payment Procedure

Employers are required to pay the calculated severance pay along with the employee's final wages and any other outstanding balances.

Types of Employment Termination in Yemen

Yemeni law recognizes several types of employment termination:

• Termination by Mutual Agreement: Both employer and employee can agree to terminate the employment contract at any time.
• Termination for Cause (Summary Dismissal): An employer may summarily dismiss an employee for gross misconduct, such as harassment, fraud, incompetence, divulging confidential company information, assault or other violent behavior, or serious disregard of safety rules.
• Termination with Notice: Both the employer and employee have the right to terminate the employment relationship provided they give adequate notice. The notice period is usually determined by the terms of the employment contract.
• Termination due to End of Fixed-Term Contract: If the employment contract is for a fixed term, it expires automatically on the end date without the need for further notice.

General Termination Procedures

While there are specific rules depending on the type of termination, here are the common steps an employer must follow:

1. Issuing Notice (if applicable): Written notice of termination must be provided to the employee, specifying the reason (if not summary dismissal) and the effective date of termination.
2. Opportunity for Response: Employers must give the employee a reasonable opportunity to respond to the allegations leading to termination.
3. Documentation: The employer should thoroughly document the termination process, including the reason for termination, the notice provided, and any responses from the employee.

Additional Considerations

• Labour Disputes: If an employee wishes to contest a termination, they can file a dispute with the relevant labor office in Yemen.
• Probationary Periods: Employers may specify a probationary period for new employees, during which termination procedures can be simpler.