Employment
Employment Act with severance allowance in place of unfair dismissal
The Employment Act sets minimum terms including a distinctive severance allowance, with work permits for non-citizens under separate legislation and disputes heard in the ordinary courts.
Key rules
- Deadline — Severance allowance is calculated per year of service on termination
- Deadline — Notice periods depend on the wage period under the Employment Act
Governing law
- Employment Act (Cap. 160) (s. 54)
- Labour (Work Permits) Act 1987
- Minimum Wages and Minimum Wages Board Act 1984
- Vanuatu National Provident Fund Act 1986
In practice
There is no general unfair dismissal jurisdiction. Instead the Employment Act's severance allowance does much of the protective work: an employee terminated other than for serious misconduct is entitled to a payment calculated on years of service, and the courts have repeatedly awarded it — sometimes multiplied — where an employer dismissed unjustifiably. That makes severance litigation the main employment claim in practice. Contributions to the Vanuatu National Provident Fund are compulsory for employers and employees, and work permits for non-citizens are annual, requiring evidence that no citizen could fill the role.