60. End-of-service gratuity

Past version: effective from 14/06/2015 - 13/06/2015
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(1) Subject to subsections (5) and (6), an Employee who completes continuous employment of 1 year or more is entitled to a gratuity payment at the termination of the Employee's employment, whether such termination is implemented by the Employer or the Employee but subject to subsection (4).
(2) The gratuity payment shall be calculated as follows —
(a) 21 days' basic wage for each year of the first 5 years of service; and
(b) 30 days' basic wage for each additional year of service,
provided that the total of the gratuity shall not exceed the wages of 2 years of service.

The daily rate for the Employee's basic wage shall be calculated based on the number of days in the year and by reference to the basic wage payable to the Employee as at the date of termination of the Employee's employment. The Employer may deduct from the gratuity any amounts owed to the Employer by the Employee.
(3) Where the termination occurs prior to the end of any full year of employment, the gratuity payment shall be calculated on a proportionate basis.
(4) An Employee is not entitled to a gratuity payment where the employment of the Employee has been terminated by the Employer for cause as defined in section 57(1).
(5) Where an Employer has established a pension scheme for his Employees, he shall provide in writing to the Employees the option to choose between participating in the pension scheme or receiving the end-of-service gratuity payment.
(6) Where an Employee has received a document under subsection (5), he shall expressly state his choice in writing and submit it to the Employer.