Labour Code 2012 - Government of Montserrat

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MONTSERRATLABOUR CODE, 2012No. 20 of 2012(2) The notification to the Labour Commissioner shallstate—(a) the number and categories of employees to beterminated;(b) the reasons for that action;(c) the period over which the termination is to takeplace;(d) whether there has been any consultation with a tradeunion, any other representative of the employees orwith the employees themselves to mitigate theeffects of the redundancy; and(e) the results of the consultation.(3) The Labour Commissioner shall, as soon as possibleafter receipt of the notification under subsection (1),inform the Minister of its contents.(4) An employer who terminates the employment of anemployee on the grounds of redundancy shall givepreference to the re- employment of that employee if heor she decides to hire a person, within a period of 12months from the date of the termination, to performduties that are the same or substantially the same asthose that were formerly performed by the employee,and shall make every reasonable effort to notify thatemployee of the vacancy.PART 6—SEVERANCE PAYMENTS, GRATUITY ANDSERVICE CHARGE75. Redundancy(1) Where an employee’s employment contract isterminated on grounds of redundancy, he or she isentitled to severance pay from his or her employercalculated as follows—(a) where the employee has worked for more than 1year but less than 5 years, he or she shall be paid 2weeks pay for every year of completed service;48
MONTSERRATLABOUR CODE, 2012No. 20 of 2012(b) where the employee has worked for more than 5years but less than 10 years, he or she shall be paid2 1/2 weeks pay for every year of completedservice;(c) where the employee has worked for more than 10years but less than 15 years, he or she shall be paid3 weeks pay for every year of completed service;(d) where the employee has worked for more than 15years, he or she shall be paid 3 1/2 weeks pay forevery year of completed service.(2) The weekly rate of pay for the purpose of calculatingseverance pay is the highest weekly basic rate of payduring his or her employment with that employer.(3) A periodic or part-time employee shall be deemed tosatisfy the conditions as to length of service if he or shehad worked with the same employer and anypredecessor-employer for at least a consecutive 4 yearperiod.(4) An employee to whom retirement benefits have beenpaid by virtue of his or her having attained the age of 60and who is subsequently dismissed on the grounds ofredundancy shall only be entitled to severance pay forthe period he or she was employed after attaining theage of 60.(5) Severance pay shall not be income for the purpose of theIncome and Corporation Tax Act.(6) If the employer fails to pay the severance pay at the timethe employee is dismissed, the employee shall have theright to apply to the Tribunal who shall assess theamount of severance pay and award it to the applicant.(7) An employee shall not be entitled to severance pay—(a) if the employer offers him alternative employmentwhich, in all the circumstances of the case, issuitable employment in relation to the employee;(b) where the business in which he is employed is takenover as a going concern and his employment is49
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Labour Code 2012 - Government of Montserrat

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