Examining the Protection of Employment Act (cont’d)-Termination

“In law a man is guilty when he violates the rights of others. In ethics he is guilty if he only thinks of doing so.” – Immanuel Kant.

Welcome back to our series that focuses on the St Vincent and the Grenadines Protection of Employment Act, 2003. Today we are examining Termination for illness, Termination due to redundancy, and termination of services by the employee.

Under ‘Termination for illness’ the Act gives an employer the power to terminate the services of an employee with notice or with payment in lieu of notice because of prolong illness. The Act states “An employer may terminate the services of an employee with notice given in accordance with the Schedule or payment in lieu thereof, if a medical practitioner certifies that the employee is incapable of performing his duties due to physical or mental illness which has been for a protracted period of six months and is likely to be permanent.” Let’s break this down. If an employee who has been unable to work due to sickness for what equates to be a period of six months, the employer may ask the employee to get a medical evaluation of his condition or may send the employee to the company doctor for an evaluation of his condition. If it is determined that the employee’s health condition is likely to be permanent, the Act gives the employer the authority to terminate the services of the employee due to illness.

In a case like this, the Act states that the Labour Commissioner should be informed by the employer of the termination. It must be noted that the Act states that an employee whose services are terminated due to illness is eligible for severance pay for years worked.

Termination due to redundancy is often misused. The Act outlined several reasons for which an employer may terminate the services of an employee due to redundancy namely “the modernisation or automation by the employer of all or part of the business; the sale or disposition of part of the business by the employer; the re-organisation of the business by the employer to improve efficiency; the discontinuation by the employer of all or part of the business; the impossibility or impracticability by the employer to carry out the operation of the business at its usual level or at all as a result of— a shortage of materials, an act of God, or a breakdown of equipment; or a reduction of the operation of the employer’s business necessitated by economic circumstances.”

The Act states that if the organization intends to terminate five or more employees due to redundancy, the trade union should be informed. Where there is no trade union, the Labour Commissioner and employees’ representative should be informed one month prior to the termination. The letter should outline the following: “the existence of the circumstances set out in subsection; the reasons for the proposed termination; the number and categories of persons involved; the period over which the termination is intended to be carried out; and the results of consultations with any trade union representing the employees.”

Where the services of an employee are terminated due to redundancy, the employer ought to pay the employee severance pay. Furthermore, The Act states that if an employee is terminated on the grounds of redundancy, and within three months from the date of the termination the employer is hiring persons to carry out the same or similar duties like what the employee did, once the employee is available, he should be given preference by the employer.

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