Severance pay to be paid

(1) Where a worker who has been continuously employed by an employer for a period of– (a) five to ten years and– (i) his employment is terminated by the employer; or (ii) the worker retires on or after attaining the age of sixty years or on medical that worker shall be paid a severance pay of one week’s wages in respect of each complete year of service; or (b) over ten years and his employment is– (i) terminated by the employer for reasons, which do not amount to dismissal, 112 (ii) abandoned by the worker pursuant to (iii) contracted for a definite period and the employment is terminated on the expiration of such period and the contract either makes no provision for or makes less favourable provisions for severance pay; or (iv) ended because the worker retires on or after attaining the age of sixty years or that worker shall be paid a severance pay of two weeks’ wages in respect of each complete year of service. (2) A worker with a minimum of ten years’ continuous service who resigns his employment shall be eligible for a gratuity equal to severance pay computed in accordance with this section (3) Notwithstanding sub-section (1)(b), where an employee has completed over ten years of continuous employment, the severance pay shall be computed as follows– (i) for the period served before day 1st of May, 2011, at the rate of one week’s pay for each complete year of service; and (ii) for the period served after the 1st day of May, 2011, at the rate of two weeks’ pay for each complete year of service.