Termination of Services/Lay-off Certificate
National Insurance & Social Security Act, Cap.47
Under Regulation 47 of the National Insurance and Social Security (Benefit) Regulations PARTICULARS are to be completed by Employer and given to Employee on date of termination.
Termination of Services – Where an employer terminates the employment of an employee or where the employee leaves the employment, the employer MUST give a Termination of Services/Lay-off Certificate to the employee and send a copy to the National Insurance Office within one week of the date of termination. An employee who wishes to claim Unemployment Benefit MUST submit the Certificate with his/her claim. A termination of Services/Lay-off Certificate must be given to the employee even if/she was only employed for a day or part thereof.
Penalty – Failure to provide the Employee with Termination of Services/Lay-off Certificate within one week of termination will result in a penalty.
Regulation 47(5) of the Benefit Regulations provides that the penalty is $1,000 for failing to comply with the requirements, where the contravention continues or the failure continues after conviction,, the penalty is $1,000 together with a further $200 for each day on which the offence is continued.
Termination refers to permanent separation i.e. the employee no longer works with the business. Self-termination refers to an employee who has resigned from the job while employee terminations refers to an employee who has been terminated by his/her employer.
Example 1 Date of Termination
Employer terminates John Brown on May 31st and pays him monies due, including holiday pay and payment in lieu of notice. In this case, date of termination is May 31st. (No NIS should be deducted from payment in lieu of notice). All wages MUST be reported in the week of termination for weekly paid employees and in the month of termination for monthly paid employees.
Example 2 Date of Termination
On May 31st employer gives John Brown one month’s notice of termination, including salary for the month of June as well as holiday pay and other monies due. (John Brown is still employed but would not be required to report for work during June). In this case, June 30th is the date of termination. If the period notice is longer or shorter, the end of the period date is the date of termination.
All wages MUST be reported in the week of termination for weekly paid employees and in the month of termination for monthly paid employees.