Severance allowance — calculation and claim

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Severance allowance — calculation and claim

Cameroon · Labour Code s. 37 · Order No. 016/MTPS/SG/CJ of 26 May 1993

1. Calculation

Item Amount or value

Average monthly pay (last 12 months) [AVERAGE PAY] FCFA

Start date [START DATE]

Contract end date [CONTRACT END DATE]

Service in completed months [LENGTH OF SERVICE]

Multiplier (months of pay) [MULTIPLIER]

Severance allowance [SEVERANCE AMOUNT] FCFA

Pay in lieu of notice [PAY IN LIEU OF NOTICE] FCFA

Total [TOTAL] FCFA

2. Band by band

Band Rate Years Amount

Years 1 to 5 20% [YEARS] [AMOUNT] FCFA

Years 6 to 10 25% [YEARS] [AMOUNT] FCFA

Years 11 to 15 30% [YEARS] [AMOUNT] FCFA

Years 16 to 20 35% [YEARS] [AMOUNT] FCFA

From year 21 40% [YEARS] [AMOUNT] FCFA

Example: 8 years and 9 months on an average of 320,000 FCFA → 5 × 20% + 3.75 × 25% = 1.9375 months, i.e. 620,000 FCFA.

3. Claim letter

[YOUR FULL NAME]

[YOUR ADDRESS]

[YOUR PHONE]

[EMPLOYER]

For the attention of the General Manager

[EMPLOYER'S ADDRESS]

[TOWN], [DATE]

Subject: Claim for my dismissal entitlements

Delivered by hand against a signed receipt

Dear Sir,

By your letter of [DATE OF NOTICE] you informed me of my dismissal from the post of [JOB TITLE], which I have held in your company since [START DATE]. My contract ends on [CONTRACT END DATE].

Under section 37 of the Labour Code and Order No. 016/MTPS/SG/CJ of 26 May 1993, my service of [LENGTH OF SERVICE] and my average monthly pay over the last twelve months of [AVERAGE PAY] entitle me to a severance allowance which I calculate at [SEVERANCE AMOUNT], unless the collective agreement provides more.

As the notice period was not worked in full, I also claim compensation in lieu of notice under section 36, that is [PAY IN LIEU OF NOTICE].

Kindly send me a detailed statement of my entitlements — severance allowance, notice, untaken paid leave, last month's pay and pro-rata bonuses — together with my certificate of employment and my payslips.

If payment is not made within [NUMBER OF DAYS] days of receipt of this letter, I reserve the right to refer the matter to the labour inspector for the area.

Yours faithfully,

_______________________________

[YOUR FULL NAME]

Received on: ____/____/________ Name, signature and stamp of the employer: ______________________

4. What the law says

Topic Rule Source

Right to the allowance Employer ends an open-ended contract, at least 2 years' continuous service, no gross misconduct Labour Code s. 37; Order 016/1993 s. 1

Base Average monthly pay of the last 12 months, without expense allowances or benefits in kind Order 016/1993 ss. 2 a and 3

Scale 20% (years 1–5), 25% (6–10), 30% (11–15), 35% (16–20), 40% (from year 21) Order 016/1993 s. 2 b

Part-years Counted in completed months Order 016/1993 s. 2 c

Notice In writing, with the reason; one paid free day a week to look for work Labour Code ss. 34 and 35

Notice not given Compensation equal to pay and benefits for the notice not worked Labour Code s. 36

Unfair dismissal Damages: at least 3 months' pay, at most 1 month per year of service Labour Code s. 39

5. Checklist

☐ Dismissal letter: date and written reason (s. 34)

☐ Last 12 payslips gathered

☐ Employment contract and your sector's collective agreement

☐ Employer's final statement compared with this calculation

☐ Untaken paid leave and last month's pay claimed

☐ Certificate of employment requested

☐ Claim letter handed in against a signed receipt (or by registered post)

☐ If you disagree: go to the labour inspector for your area

Collective agreements may give a more favourable scale. The notice period by grade is set by ministerial order: check it in your agreement. A template and an estimate, not legal advice.