Your contract carries weight — especially on severance terms

By Equipo Saplic Published on 11/08/2026 Updated on 11/08/2026

Some contracts provide more generous terms than the statutory formula.

For guidance only

The amounts and deadlines in this guide can change by law. Always check the update date and the official sources cited below. For a specific case, consult the labour authority or a professional.

In this guide
  1. Contract terms can improve on the Act
  2. What to check before signing
  3. The start date matters more than usual
  4. Disciplinary process
  5. What to gather if there is a dispute
  6. Warning signs
  7. Where to go

In Botswana, the Employment Act sets the floor and the contract frequently builds on it.

Contract terms can improve on the Act

Some employment contracts provide more generous severance terms than the statutory day-per-month formula.

Employers and employees should verify contract terms and industry practice standards, because the statutory calculation is a minimum rather than a ceiling.

What to check before signing

  1. Whether a pension or gratuity applies. It determines whether severance arises at all.
  2. Your basic pay, stated separately from allowances, since severance is calculated on it.
  3. Your start date, since severance counts completed months.
  4. The notice period, and whether the contract improves on the statutory scale.
  5. Whether the contract sets its own severance terms.

The start date matters more than usual

Because severance is calculated in completed months rather than years, a few weeks either side of a month boundary can change the figure.

And crossing the 60-month line doubles the rate for subsequent service, so the exact start date has compounding effects.

Disciplinary process

Before dismissal other than for serious misconduct, you are entitled to notice of the charges and an opportunity to respond.

If a dismissal happened without that, it is relevant.

What to gather if there is a dispute

  • Your contract
  • Payslips showing basic pay
  • Evidence of your start date
  • Any disciplinary correspondence
  • The termination letter and settlement calculation
  • Confirmation of your pension or social insurance status

Warning signs

Be cautious about paying for a job, for training or for equipment before being hired. And about arrangements with nothing in writing.

Where to go

The Ministry of Employment, Labour Productivity and Skills Development handles employment matters and compliance.

Frequently asked questions

Can my contract give better severance than the law?
Yes. Some contracts provide more generous terms than the statutory day-per-month formula. The statutory calculation is a minimum, not a ceiling.
Why does my exact start date matter?
Because severance is calculated in completed months rather than years, and crossing the 60-month line doubles the rate for subsequent service.
What should I check before signing a contract?
Whether a pension or gratuity applies, your basic pay stated separately, your start date, the notice period, and whether the contract sets its own severance terms.
What if I was dismissed without a disciplinary process?
Before dismissal other than for serious misconduct you are entitled to notice of the charges and an opportunity to respond. Its absence is relevant.
What should I gather in a dispute?
Contract, payslips showing basic pay, evidence of your start date, disciplinary correspondence, the termination letter and settlement calculation, and your pension status.

Sources

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