Payroll and Benefits Guide Liberia

Termination Process

In Liberia, the legal framework governing employment termination is primarily found in the Decent Work Act of 2015. Employment can be ended by either the employee or the employer, but specific procedures and protections apply depending on the nature of the termination.

When an employee decides to resign, they are required to provide written notice, with the amount of notice depending on their length of service. However, in cases of serious misconduct, the employer is permitted to terminate the employment immediately, without any notice.

For employer-initiated termination without cause, such as redundancy or business restructuring, a written notice must be given. The required notice periods are:

• 7 days during the probationary period, or as defined in the contract.

• 2 weeks if the employee has served between 3 and 6 months.

• 3 weeks if the tenure is between 6 and 12 months.

• 4 weeks for employees with more than one year of continuous service.

Employers may opt to pay compensation in lieu of providing notice, offering an equivalent amount of wages instead.

In cases of termination with cause, typically due to gross misconduct or violation of workplace rules, the employer may proceed without notice, provided the misconduct justifies such action. However, procedural fairness and documentation are still essential to support the termination.

Notice Period

In Liberia, the notice period depends on the employee’s length of continuous service and whether they are still in probation. Under the Decent Work Act (2015), the minimum statutory notice periods are:

• During probation – 7 days’ written notice.

• After probation, up to 6 months of service – 2 weeks’ written notice.

• 6 months to 1 year of service – 3 weeks’ written notice.

• More than 1 year of service – 4 weeks’ written notice.

Employers can either have the employee serve this notice or pay salary in lieu of notice, which must equal what the employee would have earned during the notice period.

Severance Pay

When an employee is terminated without cause—due to economic reasons like redundancy or business closure—they are generally entitled to severance pay. The standard formula provides four weeks’ salary for each completed year of service. This amount is calculated using the employee’s regular wage at the time of termination, including basic salary and certain allowances.

It’s important to note that severance pay is not required if the employee resigns or is dismissed for serious misconduct. In such cases, the employer must still fulfill other legal obligations like providing notice or compensation in lieu.

Probation Period

During the probation period, either party may terminate the employment contract with at least 7 days’ written notice, unless otherwise specified in the contract. No severance pay is required for terminations that occur during probation.