Employment Termination and Redundancy Payments Act

The Employment (Termination and Redundancy Payments) Act is a piece of Jamaican legislation that establishes the time frame and necessity of redundancy pay for unemployed workers. It was originally legislated in 1974.

Time Frame

According to the Act, a worker is required between two and 12 weeks of notification upon being unemployed, depending on their time spent with the employer. The Act does not override any time frame that had been previously established based by a contract signed by the employee.

Function

The Act guarantees temporary pay for workers who have been laid off due to redundancies, provided that they had been employed for a minimum of two years. The actual amount of redundancy pay is to be negotiated between the employer and employee.

Considerations

Only workers who have been replaced because of redundancies are guaranteed payment under the Act. Workers who have been fired for misconduct, violating a contract or who opted to not sign a new contract when offered one are not entitled to redundancy pay.

References

• Database of Labour Legislation: The Employment (Termination & Redundancy Payment) Act