Doing Business In... 2025

CABO VERDE LAW AND PRACTICE Contributed by: Nelson Raposo Bernardo, Joana Andrade Correia, Manuel Esteves de Albuquerque and Mafalda Contumélias Batista, Raposo Bernardo & Associado s

The employee can always claim cancellation of the agreement or any of its clauses, by judicial proceedings, if they consider that there has been an error, malicious act or coercion in its conclu - sion. Expiry The employment contract expires as follows: • once the period has expired; • if there is a supervening, absolute and defini - tive impossibility of the employee performing the work for which they were hired; • by the occurrence of any extinctive facts, not dependent on the will of the parties; or • upon the retirement of the employee. The expiry of the contract due to the expiry of the initial or renewal period gives the employee the right to compensation of the following amounts: • 21 days of basic remuneration if the contract lasts one year; • 15 days of basic remuneration for each full year of the contract, in addition to the first year; and • 1.75 days of basic remuneration for each month of the contract term up to one year. In undetermined-duration and fixed-term con - tracts with a duration of more than five years, the employee is entitled to compensation in the amount of ten days of basic remuneration for each full year after the first five years and one day of compensation for each month of duration of the contract up to one year. Collective Dismissal The employer may terminate the employment contracts of two or more employees on the grounds of reduced business or permanent clo - sure of the company, establishment or part of

the company structure for economic, conjectural or technological reasons. The employer intending to make a collective dis - missal shall communicate its intention in writ - ing to the unions representing the employees. If the employees are non-unionised, the company shall notify the employees directly. The commu - nication shall include the following information: • the grounds for collective dismissal; • the expected date for the termination of the contracts; • the criterion for the selection of employees; and • the number and professional category of the employees covered by the collective dis - missal. The employees covered by the collective dis - missal are entitled to compensation, the amount of which depends on the date the employee was hired. Individual Dismissal for Just Cause Under certain circumstances, the employer can terminate the contract for just cause. The con - cept of just cause includes disciplinary dismissal and other forms of dismissal, provided that they are justified according to the law. For dismissal based on unlawful conduct of the employee, the concept of just cause is the cen - trepiece of the matter and consists of the impos - sibility in practice of continuing the employ - ment relationship due to the seriousness of the employee’s misconduct. When dismissed with disciplinary cause, the employee is not entitled to any compensation. If the dismissal is not justified according to the law or if the employer does not comply with

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