INTERNATIONAL TRADE ZONE ACT, 1995

PART V
TERMINATION OF EMPLOYMENT CONTRACT

23.(1) An employer may terminate a contract of employment; after giving the necessary notice to the worker.

(2) Without prejudice to the stipulations contained within a contract, an employer may terminate a contract of employment with notice in the following cases—

(a) where the worker is on probation, during the worker's probationary period if the worker does not satisfactorily complete the period;

(b) where the worker is a trainee, at the end of the training period if the trainee fails to satisfactorily complete the training;

(c) where the worker is a casual or part-time worker, at any time.

(3) Notwithstanding subregulation 5 (1) and (2), notice of termination shall not be given to a worker while that worker is on sick leave or pregnant or on maternity leave unless the Authority so authorizes.

(4) Notwithstanding subregulations (I) and (2), an employer may terminate a contract of employment without notice where the worker has committed a serious disciplinary offence within the meaning of that expression in regulation 33(2).

24. (1) A contract is frustrated when it becomes impossible of performance as when, among other things or reasons—

(a) the business of the employer ceases through its becoming prohibited or illegal under any written law;

(b) a worker is disqualified through the suspension or cancellation of any licence, permit, registration or authority required under the written law for the purpose of exercising the occupation or profession of the worker,

and, except in the case of paragraph (b), the worker, other than a casual worker, is entitled upon frustration of the contract to one month's notice or to payment in lieu and to, if any, any additional compensation agreed upon by the employer and the worker.

(2) For the avoidance of doubt it is declared that where a contract is frustrated, the grievance procedure does not apply.

(3) An employer whose business ceases under subregulation (l)(a) shall forwith notify the Authority of the same.

25. Termination under subregulation 23( 1) and (2) by employer requires—

(a) in the case of any casual worker, one day's notice;

(b) in the case of a worker on probation seven day's notice;

(c) in the case of any other worker, other than a non-Seychellois worker, one month's notice;

(d) in the case of non-Seychellois worker, not being a casual worker or a worker on probation, the period of notice specified in the contract of employment of the worker or, where a period of notice is not specified, one month's notice.

26.(1) A worker may terminate the contract of employment of the worker—

(a) in the case of any casual worker, with one day's notice;

(b) in the case of a worker on probation with seven day's notice;

(c) in the case of any other worker, other than a Non-Seychellois worker, with one month's notice;

(d) in the case of a non-Seychellois worker, not being a casual worker or a worker on probation, with the period of notice specified in the contract of employment of the worker or, where a period of notice is not specified, with one month's notice.

(2) A worker, other than a casual worker, may terminate the contract of employment of the worker without giving prior notice—

(a) where the worker suffers ill-treatment at the hands of the employer;

(b) where the employer is, in respect of the worker, in breach of these Regulations; or

(c) where the worker is under suspension for investigative purposes,

but the worker shall inform the employer in writing of the termination and of the reason therefor.

27. (1) An employer shall not vary the terms and conditions of employment of a worker in any way less favourable to the worker without the worker's written consent.

(2) Where the written consent required under subregulation (1) to a variation of the terms and conditions of employment of the worker cannot be obtained, the employer may subject to subregulation (3) and regulation 23 terminate the contract of employment of the worker.

(3) The termination of employment of a worker under subregulation (2) shall be deemed to be for a cause in no way attributable to the worker and the worker is entitled to compensation agreed upon by the employer and the worker.

28.(1) Where a change of ownership of a business occurs and the change would result in the termination of employment of a worker in that business, the employer of the worker may, subject to subregulation (2) and regulation 23 terminate the contract of employment of the worker.

(2) The termination of employment of a worker under subregulation (1) shall be deemed to be for a cause in no way attributable to the worker and the worker is entitled to compensation agreed upon by the employer and the worker.

(3) For the purposes of this regulation a change in the ownership of a business is deemed to occur or to be contemplated whenever by, or by intended, sale, lease or other disposition or by operation of law an owner transfers or proposes to transfer, as the case may be, to another person—

(a) the business;

(b) the equipment, fittings or furnishings of the business;

(c) the goodwill of the business; or

(d) the business name.

29. (1) Subject to this regulation, where as a result of an employer—

(a) ceasing to operate, in whole or part, a business, otherwise than as provided under regulation 28;

(b) temporarily suspending, in whole or part, the operation of a business for circumstances beyond its control such as a shortage of a raw materials, a natural catastrophe or any disruption of work which have not been foreseen;

(c) reconstructing the operation of a business for the purpose of facilitating improvement in the business by which greater efficiency and economy can be affected; or

(d) introducing new technology in a business,

a worker employed in the business has become redundant, that employer may, subject to subregulation 23( 1). terminate the contract of employment.

(2) Where the contract of employment of a worker is terminated under subregulation (1), the worker shall be entitled to compensation agreed upon by the employer and the worker.

30.(1) A worker—

(a) whose contract of employment is terminated—

(i) pursuant to regulation 23( 1) and(2)(a) or (b);

(ii) for a serious disciplinary offence pursuant to regulation 23(4);

(b) who terminates his contract under regulation 26 (2) (a) or(b),

may initiate the grievance procedure.

(2) Upon conclusion of the grievance procedure initiated under subregulation (1), the Authority may determine as follows—

(a) in the case of subregulation (1 )(a)—

(i) that termination is justified;

(ii) that termination is not justified and that the worker is reinstated in the post or offered other suitable employment and that, where applicable, some disciplinary measure or none be taken in lieu of termination;

(iii) that termination is not justified but,as it would riot be practical or convenient to reinstate the worker in the post or offer the worker other suitable employment, allow the termination subject, in the case of subregulation (l)(a)(ii),to the payment in lieu of notice of one month's wages or, where an amount is specified in his contract of employment in the case of a non-Seychellois worker referred to in regulation 25(c), that amount;

(b) in the case of subregulation (1)(b):—

(i) that termination is justified, in which case the worker is entitled to the payment of one month's salary In addition to any benefits or compensation the worker may have earned;

(ii) that termination is not justified, in which case the worker is liable to pay the employer a sum equal to one month's salary or, where an amount specified in the contract of employment in the case of a non-Seychellois worker referred to in regulation 26(1)(d), that amount and the employer may deduct the sum or the amount from any payments owed by him to the worker in accordance with regulation 14(3).

31. Where—

(a) a contract of employment is frustrated, other than under regulation 24(1)(b);

(b) a contract of employment is terminated by an employer—

(i) under regulation 23(2)(a) or (b) and the grievance procedure is initiated by the worker with the result that termination is allowed under regulation 30(2) (a)(iii);

(iii)other than for a serious disciplinary offence under regulation 23(4);

(c) a contract of employment is terminated by the worker and the Authority determines pursuant to regulation 30(2)(b)(i) that the worker is justified in terminating the contract,

compensation is payable to the worker, in addition to the worker's wages and any benefits earned.

32. Wherever notice is required to be given under this Part, payment corresponding to the period of notice required or to such part of it as is not worked may be made in lieu.