3. Payment in lieu of notice
Both employers and employees may terminate the employment by paying the other party a sum of wages in lieu of the required period of notice.
The amount of wages in lieu of notice for termination of a continuous contract of employment is determined as follows.
|
|
Minimum length of notice |
Wages in lieu of notice |
|
With an expressed agreement |
As per the agreement, but not less than 7 days |
If the notice period is expressed in days or weeks:
(Average daily wages* earned by an employee in the 12-month period preceding the day when a notice of termination of contract is given) x (Number of days in the notice period for which wages would normally be payable to the employee)
If the notice period is expressed in months:
(Average monthly wages* earned by an employee in the 12-month period preceding the day when a notice of termination of contract is given) x (Number of months specified in the notice period) |
|
Without an expressed agreement |
1 month |
(Average monthly wages* earned by an employee in the 12-month period preceding the day when a notice of termination of contract is given) x (Number of months specified in the notice period) |
If you are in a probation period, the amount of wages in lieu of notice is determined as follows.
|
Probation Period |
Minimum length of Notice |
Wages in lieu of Notice |
|
|
Within the 1st |
Not required |
Not required |
|
|
After the 1st month of probation |
With an expressed agreement |
As per the agreement, but not less than 7 days |
If the notice period is expressed in days or weeks:
(Average daily wages* earned by an employee in the 12-month period preceding the day when a notice of termination of contract is given) x (Number of days in the notice period for which wages would normally be payable to the employee)
If the notice period is expressed in months:
(Average monthly wages* earned by an employee in the 12-month period preceding the day when a notice of termination of contract is given) x (Number of months specified in the notice period) |
|
Without an expressed agreement |
7 days |
(Average daily wages* earned by an employee in the 12-month period preceding the day when a notice of termination of contract is given) x (Number of days in the notice period for which wages would normally be payable to the employee) |
|
*In calculating the average daily/monthly wages, you must exclude:
1) the periods for which an employee is not paid his wages or full wages, including:
- rest day, statutory holiday, annual leave, sickness day, maternity leave, paternity leave,
- sick leave due to work injuries or leave taken with the agreement of the employer, and
- any normal working day on which the employee is not provided by the employer with work
2) the sum paid to the employee for the periods mentioned above.
For details, see “A Guide to the Calculation of Relevant Statutory Entitlements on the Basis of the 12-Month Average Wages with Examples”.
Print
Email