🇩🇲 Labour Standards Act Cap. 89:05 • Redundancy Protection Scale
Dominica Severance Pay & Redundancy Calculator
Determine official statutory redundancy severance packages, required dismissal notice periods, and untaken vacation settlements under Dominica labour legislation in Eastern Caribbean Dollars (XCD) and US Dollars (USD).
Statutory Severance Scale Cap. 89:05 Rules
Years 1 to 5
1 wk / yr
Initial service tier
Years 6 to 10
2 wks / yr
Mid-career service tier
Years 11 to 20
3 wks / yr
Long-service tier
Over 20 Years
4 wks / yr
Maximum seniority multiplier
Termination Parameters
EC$ / XCD
Weekly pay rate = Monthly salary / 4.3333 weeks.
Years
Minimum qualification requirement: 1 continuous year.
Days
Daily vacation pay = Monthly salary / 21.67 working days.
Total Redundancy Settlement
EC$ 17,732.31
USD $6,567.52 (Fixed peg 2.70)
Severance Weeks Accrued
11.0 Weeks
EC$ 12,184.62 pure severance
Itemized Redundancy Package Structure Labour Standards Act
Basic Weekly Wage Rate EC$ 1,107.69 / week
Pure Statutory Severance (11 wks) EC$ 12,184.62
Pay in Lieu of Notice (4 wks / 1 month) EC$ 4,430.77
Accrued Vacation Pay Settlement (5 days) EC$ 1,116.92
Total Gross Redundancy Package EC$ 17,732.31
Statutory Dismissal Notice Entitlements
Service Under 5 Years
1 to 3 Weeks Notice
<1 yr: 1 wk; 1–3 yrs: 2 wks; 3–5 yrs: 3 wks.
Service Over 5 Years
4 Weeks (1 Full Month)
Mandatory minimum notice period for long-tenure staff.
Comparison: Dominica Severance Laws vs. Regional Caribbean Jurisdictions
Comparative analysis of qualifying periods, statutory severance tiers, and notice pay across OECS and CARICOM nations.
| Country | Qualifying Service | Severance Formula | Notice Period Max | Severance Cap |
|---|---|---|---|---|
| 🇩🇲 Dominica | 1 Year | 1 wk (1-5 yrs), 2 wks (6-10), 3 wks (11-20), 4 wks (>20 yrs) | 4 Weeks (1 month) | No statutory cap |
| 🇱🇨 Saint Lucia | 2 Years | 1 wk (1-7 yrs), 2 wks (8-14), 3 wks (>15 yrs) | 6 Weeks | No statutory cap |
| 🇬🇩 Grenada | 1 Year | 1 wk per year of service | 1 Month | No statutory cap |
| 🇧🇧 Barbados | 2 Years | 2.5 wks (1-10 yrs), 3 wks (11-20), 3.5 wks (>20 yrs) | 10 Weeks | Max 52 Weeks |
MS
Verified Author & Regulatory Systems Architect
Engr. Muhammad Shahzad
Principal Systems Engineer & Caribbean Labour Law Specialist
Designer of deterministic redundancy computation models, employment protection compliance engines, and statutory severance scale simulations across the Commonwealth Caribbean.
🏛️ Labour Standards Act (Cap. 89:05) • 💼 Statutory Redundancy Multipliers • View Author Credentials →
Frequently Asked Questions (FAQ)
What is the qualifying service period for redundancy severance in Dominica?
Under the Dominica Labour Standards Act (Cap. 89:05) and protection of employment regulations, an employee must have completed at least one continuous year (12 months) of service with the employer to qualify for statutory redundancy severance pay.
How is statutory redundancy severance pay calculated in Dominica?
Statutory severance is calculated on a tiered progressive service scale: 1 week of basic pay per year for years 1 to 5; 2 weeks of basic pay per year for years 6 to 10; 3 weeks per year for years 11 to 20; and 4 weeks per year for each year exceeding 20 years of continuous service.
What statutory notice periods apply for redundancy dismissal in Dominica?
Statutory notice requirements depend on continuous service: less than 1 year requires 1 week notice; 1 to 3 years requires 2 weeks notice; 3 to 5 years requires 3 weeks notice; and over 5 years requires 4 weeks (one calendar month) notice. If dismissed without notice, the employer must pay full basic wages in lieu of notice.
How are unused accrued vacation days settled upon termination?
Any untaken statutory vacation leave accrued up to the date of redundancy must be paid out in full of the final settlement. The daily rate is calculated by dividing monthly basic salary by 21.67 working days.
Is severance pay subject to PAYE income tax in Dominica?
Under the Income Tax Act, pure statutory redundancy severance payments enjoy tax-exempt treatment up to prescribed statutory limits. However, payment in lieu of notice, outstanding regular wages, and accrued vacation encashments are treated employment income subject to PAYE and DSS deductions.
📊 Dominica Inland Revenue Division (IRD) & DSS Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (XCD) |
|---|---|
| Primary Net / Statutory Payable Amount | EC$ 0.00 |