Notice depends on contract length, and redundancy has a process
By Equipo SaplicPublished on 11/08/2026Updated on 11/08/2026
Employers planning redundancies must notify the Chief Labour Officer — that requirement is often skipped.
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.
Under Act 651, a contract of employment may be terminated by either party at any time, but the notice required depends on the contract.
Notice periods
Contracts of three years or more: one month's notice, or one month's pay in lieu
Contracts of less than three years: two weeks' notice, or two weeks' pay in lieu
Week-to-week contracts: seven days' notice
Contracts terminable at will: may end at the close of any day without notice
Redundancy has a formal process
This is the part employers most often get wrong. Where an employer contemplates major changes in production, programme, organisation, structure or technology that are likely to result in terminations, Act 651 requires the employer to:
Submit in writing to the Chief Labour Officer all relevant information — the reasons for termination, the number and categories of workers likely to be affected, and the period within which terminations will occur
Consult the trade union concerned on measures to avert or minimise the terminations, and to mitigate their effects, including finding alternative employment
These are legal obligations, not courtesies. If a redundancy happened without them, that is relevant to any challenge.
Severance pay
Employees terminated for redundancy or other non-misconduct reasons are entitled to severance pay of at least two weeks' salary per year of service, in addition to any accrued leave pay.
Better terms are frequently negotiated in contracts or collective agreements.
Closure and amalgamation
Where an undertaking closes down or undergoes amalgamation and that arrangement severs the employment relationship, specific provisions apply.
Unfair termination
Employees who believe they were unjustly dismissed may refer the matter to the National Labour Commission for mediation and arbitration.
The NLC may award reinstatement or compensation.
Final payments
Employers must make final payments promptly on termination and provide the documentation needed for benefit claims.
Frequently asked questions
How much notice am I owed?
One month for contracts of three years or more, two weeks for contracts under three years, and seven days for week-to-week contracts. Pay in lieu is permitted.
What must an employer do before making redundancies?
Submit written information to the Chief Labour Officer — reasons, numbers and categories affected, and timing — and consult the trade union on measures to avert or minimise terminations.
How much severance is owed on redundancy?
At least two weeks’ salary per year of service, in addition to accrued leave pay. Better terms are often negotiated in contracts or collective agreements.
What if I think my dismissal was unfair?
You may refer the matter to the National Labour Commission for mediation and arbitration. The NLC may award reinstatement or compensation.
Does the employer have to give me documents?
Yes. Employers must make final payments promptly and provide the documentation needed for benefit claims.