22. Permanent contracts: Rights to terminate the contract

• Attendance pay,
• Compensation for unused holiday leave,
• Employment certificate,
• Severance pay, if the employee has 12 months’ service, equal to the average gross salary for the last 12 months, plus
• 20 per cent for each of the first to fifth years of service,
• 25 per cent for each of the 6th to 10th years of service,
• 30 per cent for each year beyond the 10th year of service.
• Notice pay, where applicable, equal to the salary for the period of notice not observed,
• Procedural compensation, for failure to refer the matter to the inspector, where applicable, one month’s gross salary,
• Compensation for dismissal on economic grounds, where applicable, equivalent to one month’s gross salary.

NB: Dismissal on economic grounds covers all reasons unrelated to the employee personally.

This is why, in addition to statutory entitlements, it entitles the employee to compensation equivalent to one month’s gross salary.

Special cases

• In the event of dismissal for gross misconduct, confirmed by a court, only the salary for the period worked and any unused holiday entitlement are payable.
• In the event of the employee’s resignation, only accrued entitlements are payable (salary for the period worked, unused holiday entitlement and a certificate of employment)
• Severance pay is payable after 10 years’ service. It is calculated under the same conditions as redundancy pay.