Employee Terminations in the BVI Labour Code: Notice Period & Notice Period Pay
This article does not cover severance pay or valid reasons for employee terminations. It simply explains the notice period that an employee should receive in the event that the employer decides to terminate the employment agreement.
Probationary employees can be dismissed for any valid reason with 24 hours notice.
Employees to be terminated fall into one of three Notice-Period categories:
0 – 7 Years = Pay Period Notice
8 – 15 Years = One Month Notice
15 Years > = Two Months Notice
John Smith has worked for Tech Ltd for the last 6 years and is paid semi-monthly on the 15th and 30th of each month. The company has decided to terminate his employment contract. Tech Ltd is required to provide John Smith with at least 15 days notice of his termination.
Johnny Smith is also an employee of Tech Ltd for 13 years and is paid bi-weekly. The company has also decided to the end the employment contract with Johnny Smith. Because Johnny has worked more than 7 years with the company, Tech Ltd is required to provide Johnny with at least one month notice of his termination.
Payment in Lieu (Notice-Period Pay)
An employer has the option to immediately dismiss an employee by paying the Notice-Period Pay. Instead of allowing the employee to work during the duration of the notice period, the employer can prepay the employee the amount they would have received over the period of the termination notice.
Johana Smith works with Tech Ltd for 16 years. Tech Ltd decides to terminate the employment contract as of today. In addition to vacation days and salary due until today’s date, Tech Ltd, will also have to pay Johana 2 months of full salary (notice-period pay) because Johana has worked more than 15 years with the company and the BVI Labour code provides for her to receive at least 2 months notice.
The Virgin Islands Human Resource Management System (ViHRMS) not only automatically calculates both the vacation days due and Notice-Period Pay but also the exact salary/wage owed to an employee at a specific termination date. Try it today by signing up for free at vihrms.com