Effects of Termination

Of Employment Contracts.
 Effects of Lawful Termination
1. Certificate of Service (Art.12 (7)LP& Art.87
FCSP
It is a document to be issued by the employer
which testifies ; year of service, position & wage
is available free of charge to all types of
terminations except due to death as it will not have
a purpose.
reason for termination shall not stated unless there
is interest. b/c
may negatively affect the employability
 Payments on Termination of Contract of Employment

36. Period of Payment

shall be paid within seven working days from the
date of termination, but b/c his own
37. Amount in Dispute
 the employer shall pay the worker the sum not in
dispute within seven working days.
38. Effects of Delay
The court may order up to three month's wage but
not for due to causes beyond the control of the
employer.
2 Payment for unutilized annual leave Art. 36(3) FCSP & Art.
76(2) LP
In principle it is prohibited to convert annual
leave into cash.
When ever there is; the employee is entitled to
pay for the leave not taken.
amount cannot be in excess of two years annual
leave converted into cash.
3 Severance payment
No.494/2006 Art.2 (g) & Art. 88(1

 is not entitled to those have pension or

provident fund
severance payment, shall be determined on
the amount of wage the individual was
earning during to termination and his/her
length of service.
Art. 88 FCSP is important.
 Limitation(162 L p)
an action(suit) arising from an employment
is barred by limitation after one year.
 reinstatement of a worker arising from the
unlawful termination after three months.
 Claims by a worker for payment of wages,
overtime and other payments; after six
months.
Any claims by a worker or employer for
any kind of payment within six months
 Compensation for Termination of
Contract of Employment with out Notice

If termination is made pursuant to

Art. 32(1) shall be entitled,
in addition to the severance pay
(Art. 40), shall be compensated his
one month salary even if he has
pension
 Compensation
Is allowed only under Labor law for terminated due
to;
“the permanent cessation of operation of the
undertaking because of bankruptcy or any other
cause” (Art.24 (4) (two months salary)or
 due to lay off (Art.29) (two months salary)
and
employees who resigned on an extra
ordinary procedure (Art.32)(one month
salary)
Unlawful termination and its effects
Any termination which fails to observe the
substantive or procedural requirements of
termination shall be held unlawful.(refer
Arts.14(1)(c),23(1) & 42 of LP.
Reinstatement but not if the court
did not believe on it and
Dismissal with Compensation; if it
gives rise to serious difficulties.
Art.43
 Compensation for Termination of
Contract of Employment with out Notice

If termination is made pursuant to

Art. 32(1) shall be entitled,
in addition to the severance pay
(Art. 40), shall be compensated his
one month salary even if he has
pension
Reinstatement or Compensation of a Worker in the
Case of Unlawful Termination

terminated on the grounds Art. 26 ()2,

the employer is obliged to reinstate the
worker, or entitled for compensation if he
wishes to leave his employment.
Termination made contrary to the provisions
of Articles 24, 25, 27, 28 and 29
the court may order the reinstatement of the
worker or the payment of compensation.
 Cont’d
The court may order dismissal of the worker
or compensation even if the worker
demands reinstatement where it believes
that the continuation of worker gives rise
to serious difficulties.
Similarly, where a worker who, after
obtaining judgment of reinstatement in his
favor decline to be reinstated the court may
order the dismissal up on full compensation
 Amount of Compensation
one hundred eighty times his average daily wages &
a sum equal to the notice period (Art.44)
definite period a sum equal to his wages for the
remaining period but not exceed one hindered
eighty times his average daily wage .
 Where the first instance court orders the
reinstatement, the court shall order the payment of
back -pay not exceeding 6 months wage. but
If the decision of reinstatement is confirmed by the
appellate court it shall order payment of back pay
not exceeding one year..
 Exceptions(44)
Termination made in violation of
Notice(Art.35) the employee shall be
entitled for the undue notice period,.
Compensation to the employer(45)
 A worker who terminates his contract of
employment contrary to the provisions of
Article 31 or 35(2) shall be liable to pay
compensation not exceed thirty days wages
of the worker.