(Section 54 (1) (c) of the Employment Code Act, Number 3 of 2019)
***Employees engaged on a permanent basis are entitled to payment of severance
pay when their contracts of employment are terminated for a reason other than
redundancy, medical discharge or death. The entitlement to severance pay is only
applicable (effective) from 9th May 2022 going forward and is inapplicable to
expatriate employees and management employees.
Severance pay in this instance would be 25% of the employee’s basic pay earned
during the contract period as at the effective date of termination.
Compliance is essential and we are here to help ensure that you remain compliant, in
this case compliant with the provisions of the Employment Code Act. Our doors are
open, come through and let us have that compliance talk.
*** At J27 in Albert Mupila v.Yu Wei: Comp/IRCLK/222/2021
Disclaimer: The information expressed in this document is for general purposes only. It does not in
any way constitute legal or professional advice.