Termination of the work relationship is strictly regulated in Algerian law. Article 66 of the Law 90-11 dated 21 April 1990 on employment relations, as amended, and supplemented, hereafter referred to as “Law 90-11”, has stipulated the cases/legal reasons for ending the employment relationship.
The main reasons provided by the law to terminate an employment contract are:
- The nullity or the legal abrogation of the employment contract.
- The arrival at the end of short-term contract.
- Resignation.
- Dismissal.
- The total incapacity to work.
- Dismissal in order to reduce the workforce (downsizing).
- The employer ceasing legal activities.
- Retirement.
- Death.
According to the above, dismissal as a unilateral way of terminating the employment relationship is limited in labour law to disciplinary dismissal and dismissal for economic reasons, excluding dismissal for personal reasons, lack of skills or performance.
A disciplinary dismissal takes place after an employee commits a serious fault.
The Labour Code defines serious faults as serious penal faults that occur during work and are sanctioned by penal legislation. The following are also considered examples of serious fault (Art. 73 of Law 90-11):
- A worker who refuses without any valid reason to execute instructions linked to his/her professional obligations or he causes the company distress because he fails to execute his/her obligations.
- A worker who divulges professional information related to techniques, technology, production process, organisational mode or internal documents, unless he/she is authorised by the employer or by law to do so.
- A worker who participates in a collective and concerted work stoppage in violation of the legislative provisions in force.
- A worker who commits any act of violence.
- A worker who deliberately causes material damage to buildings, structures, machines, instruments, raw materials, or any object connected to work.
- A worker who refuses to execute a notified requisition order in accordance with the regulation in force.
- A worker who takes drugs or drinks alcohol inside the company or the workplace.
In practice, unless dismissal proceedings are provided for in the internal rules, only the above-mentioned faults are considered serious and are subject to dismissal.
Note that as per Art. 73-1 of Law 90-11, in determining and qualifying serious fault committed by a worker, the employer must consider the circumstances in which the fault occurred, its extent and
degree of seriousness, the damage caused, as well as the conduct of the worker, up to the date of this fault, towards the patrimony of his/her employing organisation.
Dismissal for economic reasons is analysed below under section 1.7.
Thus, Algerian legislation does not define the procedure and conditions to be followed for other cases of termination of the employment relationship (except for disciplinary dismissal and dismissal due to economic reason).
Therefore, due to potential negative consequences, dismissal should only be considered in cases of extreme necessity. Indeed, a Court may qualify a dismissal as abusive if the dismissal does not respect the legal provisions. Indeed, the risk is that the Court may either ask for the reinstatement of the worker (when possible) or grant the employee compensation for abusive dismissal amounting to six months’ salary. In addition to this amount, the Court may grant the employee the salaries that he would have been paid between the dates of dismissal and the decision. In addition to this amount, the Court may also grant the employee compensation for any damage caused by the loss of his/her job.
Note that Law 90-11 was amended by Law 22-16 of 20 July 2022. Indeed, the latter law added provisions concerning cases that lead to the suspension of the work relationship and worker leave for the creation of a business. Specifically, workers are entitled to non-remunerated leave for business creation once during their professional career.
A worker is also entitled to participate in part-time work for business creation.
The duration of leave or part-time work for business creation is set at a maximum of one year. This can be extended in exceptional circumstances for a period not exceeding six months if the concerned worker provides appropriate justification.
A worker receiving leave for the creation of a business will face the suspension of his/her remuneration and the termination of his/her rights relating to seniority and promotion.
However, the worker preserves all acquired rights related to his/her job position as of the date of the leave for business creation.
During leave, a worker will continue to benefit from social security coverage according to the terms set by the regulation.
In case of non-completion of the project within the set deadlines, the worker may request reinstatement in his/her job, or to be reemployed in full-time work within a minimum of one month before the expiration of the leave or the period of part-time work for business creation.
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