Overview of Rwanda's Termination Laws
Rwanda's employment termination and severance regulations are governed by Law No. 66/2018 of 30/08/2018 regulating labour in Rwanda, which replaced the previous Labour Law of 2009. This comprehensive legislation establishes clear procedures for dismissal, notice periods, severance payments, and employee appeals processes within the Rwandan labor market.
The law applies to all employment contracts in Rwanda, whether written or verbal, and covers both local and foreign employees working within the country. With the Rwandan Franc (RWF) as the official currency, all monetary calculations for severance and compensation are conducted in RWF unless otherwise specified in international employment contracts.
Types of Employment Termination
Termination by Mutual Agreement
Under Article 28 of Law No. 66/2018, employment contracts can be terminated by mutual consent between employer and employee. This requires:
- Written agreement signed by both parties
- Clear specification of termination date
- Agreement on final settlements and benefits
- Compliance with any applicable notice periods
Termination by Employee (Resignation)
Employees may terminate their contracts with proper notice as outlined in Article 29:
- Senior management positions: Three months' notice
- Middle management and specialized positions: Two months' notice
- General positions: One month's notice
- Probationary period: One week's notice
Termination by Employer
Employers may terminate employment contracts under specific circumstances defined in Articles 30-35, including:
- Economic reasons (redundancy)
- Disciplinary reasons (misconduct)
- Incompetence or poor performance
- End of fixed-term contracts
- Retirement (mandatory at age 65)
Dismissal Procedures
Disciplinary Dismissal Process
Article 32 of Law No. 66/2018 establishes strict procedures for disciplinary dismissals:
- Written notice of charges: Employee must receive detailed written notice of allegations
- Right to respond: Employee has 48 hours to provide written response
- Investigation period: Employer must conduct fair investigation within reasonable timeframe
- Disciplinary hearing: Employee entitled to hearing with right to representation
- Final decision: Written decision with reasons must be provided within 7 days
Redundancy Procedures
For economic dismissals, employers must follow Article 34 requirements:
- Consultation with employee representatives or trade unions
- 30 days advance notice to Ministry of Public Service and Labour
- Priority consideration for alternative positions
- Fair selection criteria based on objective factors
- Compliance with collective bargaining agreements where applicable
Summary Dismissal
Immediate dismissal without notice is permitted only for gross misconduct under Article 33, including:
- Theft or fraud
- Serious breach of confidentiality
- Violence or serious insubordination
- Criminal conviction affecting employment
- Serious negligence causing significant loss
Notice Periods
Statutory Notice Requirements
Article 30 specifies minimum notice periods for employer-initiated terminations:
- Less than 6 months service: 1 week notice
- 6 months to 2 years service: 1 month notice
- 2 to 5 years service: 2 months notice
- Over 5 years service: 3 months notice
- Senior management: 3 months regardless of service length
Payment in Lieu of Notice
Employers may provide payment equivalent to notice period salary instead of working notice, calculated based on:
- Basic salary during notice period
- Regular allowances and benefits
- Excluding overtime and irregular payments
Severance Pay Calculations
Statutory Severance Entitlements
Article 36 of Law No. 66/2018 establishes severance pay calculations:
- First year of service: 15 days' salary per year
- After first year: 30 days' salary per year of service
- Maximum entitlement: 12 months' salary (to be verified)
- Minimum service requirement: 6 months continuous employment
Calculation Methodology
Severance calculations are based on:
- Basic salary: Monthly basic wage excluding variable elements
- Regular allowances: Housing, transport, and other fixed allowances
- Average calculation period: Last 12 months or actual service period if shorter
- Pro-rata calculation: Incomplete years calculated proportionally
Exclusions from Severance
No severance pay is required for:
- Summary dismissal for gross misconduct
- Employee resignation without just cause
- Termination during probationary period
- Fixed-term contract expiry
- Retirement at statutory age
Appeals and Dispute Resolution
Internal Appeals Process
Employees may challenge dismissal decisions through:
- Internal grievance procedures: Company-level appeals within 7 days
- Written submissions: Documented grounds for appeal
- Management review: Senior management consideration of appeal
- Final internal decision: Written response within 14 days
External Dispute Resolution
Under Articles 140-145, unresolved disputes may be escalated to:
- Labour inspection services: Ministry of Public Service and Labour mediation
- Conciliation committees: Tripartite mediation at district level
- National Labour Council: Higher-level dispute resolution body
- Courts of law: Final judicial determination through civil courts
Time Limits for Appeals
Strict timeframes apply for dispute escalation:
- Internal appeals: 7 days from dismissal notification
- Labour inspection: 30 days from final internal decision
- Court proceedings: 3 months from dismissal date (to be verified)
- Conciliation: 60 days maximum for resolution attempt
Special Considerations
Protected Categories
Enhanced protection applies to:
- Pregnant employees: Dismissal prohibited during pregnancy and maternity leave
- Trade union representatives: Special procedures required under collective bargaining laws
- Employee representatives: Additional consultation requirements
- Workers on sick leave: Dismissal restrictions during certified illness
International Employment
For foreign employees and international contracts:
- Rwanda labour law takes precedence for work performed in Rwanda
- Repatriation costs may be additional employer obligation
- Visa and work permit implications must be considered
- Currency conversion rates apply for foreign currency contracts
Note: This guide provides general information based on Law No. 66/2018. Specific cases should be reviewed with qualified legal counsel, and some implementation details marked "to be verified" require confirmation with current practice and regulations.