Q: What notice period is required when an employer terminates an employment contract?

The employer must give written notice: 30 days for service under 3 years; 60 days for service between 3 and 10 years; 90 days for service exceeding 10 years.

Q: What compensation is awarded if the dismissal is ruled unlawful or arbitrary?

If a labor court or conciliation panel finds the dismissal unfair, the employee is entitled to reinstatement or damages equal to double the statutory severance amount.

Q: What other terminal payouts must be included in the final settlement?

The employer must pay all earned wages up to the termination date, compensation for unused accrued annual leave days, and pro-rated 13th month Christmas bonus.

Q: Can an employer withhold severance pay if an employee is dismissed for just cause?

Under Article 51, dismissal for proven serious misconduct (theft, physical violence, fraud) does not entitle the employee to statutory severance pay or notice pay.

Question 1

What is the statutory severance pay scale under the Labour Code of Timor-Leste (Law No. 4/2012)?

Accepted Answer

Under Article 56, severance pay for individual dismissal on objective grounds: tenure < 3 years: 1 month salary; 3 to 5 years: 1.5 months; 5 to 10 years: 2 months; 10+ years: 3 months basic salary.

Question 2

What notice period is required when an employer terminates an employment contract?

Accepted Answer

The employer must give written notice: 30 days for service under 3 years; 60 days for service between 3 and 10 years; 90 days for service exceeding 10 years.

Question 3

What compensation is awarded if the dismissal is ruled unlawful or arbitrary?

Accepted Answer

If a labor court or conciliation panel finds the dismissal unfair, the employee is entitled to reinstatement or damages equal to double the statutory severance amount.

Question 4

What other terminal payouts must be included in the final settlement?

Accepted Answer

The employer must pay all earned wages up to the termination date, compensation for unused accrued annual leave days, and pro-rated 13th month Christmas bonus.

Question 5

Can an employer withhold severance pay if an employee is dismissed for just cause?

Accepted Answer

Under Article 51, dismissal for proven serious misconduct (theft, physical violence, fraud) does not entitle the employee to statutory severance pay or notice pay.

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📊 Tabela Comparativa Estatutaria de Timor-Leste (Autoridade Tributaria & INSS)

Engr. Muhammad Shahzad