Redundancy benefit in Dominica depends on three conditions, and all three must be met.
One: are you covered?
You must be covered by the Protection of Employment Act.
All employees are covered except any employee who is the father, mother, husband, wife, brother, sister, son or daughter of the employer.
By virtue of being exempt, no contributions towards redundancy are payable on their behalf, and they are not eligible for the benefit.
The tell is your employer's contribution rate: 7.75% means covered, 7.50% means not.
Two: three years of service
You must have been employed for at least three years.
That is a substantial threshold. Two years and eleven months does not qualify.
Three: a qualifying reason
Redundancy benefit is payable to an employee who suffers loss of employment arising out of the introduction of new methods of work — whether by automation, mechanisation, rationalisation or reorganisation — due to shortage of work, in accordance with the Act.
The four situations the Act identifies:
- Modernisation, automation or mechanisation of all or part of the business
- Discontinuation or cessation of all or part of the business
- Sale or other disposal of all or part of the business
- Re-organisation to improve efficiency