{"id":136970,"date":"2026-04-07T13:44:10","date_gmt":"2026-04-07T13:44:10","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=136970"},"modified":"2026-04-07T13:44:10","modified_gmt":"2026-04-07T13:44:10","slug":"guernsey-employment-and-labour-law","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/guernsey-employment-and-labour-law\/","title":{"rendered":"Guernsey: Employment and Labour Law"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-136970","comparative_guide","type-comparative_guide","status-publish","hentry","guides-employment-and-labour-law","jurisdictions-guernsey"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Carey Olsen<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/07\/Carey-Olsen.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Carey Olsen<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/07\/Carey-Olsen.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Employment and Labour Law laws and regulations applicable in Guernsey<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does an employer need a reason to lawfully terminate an employment relationship? If so, state what reasons are lawful in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For those employees with more than 12 months&#8217; continuous service, statutory provisions require that any dismissal must be substantively and procedurally fair. There are five substantially fair reasons for dismissal, namely conduct, capability, redundancy, breach of statutory duty or &#8216;some other substantial reason&#8217;; and the employer must act reasonably in treating the reason as sufficient to justify dismissing the employee.<\/p>\n<p>Where employees with more than 12 months&#8217; service specifically request, an employer must provide the employee with written reasons for their dismissal.<\/p>\n<p>Even where one of these reasons applies, the employer must also follow a reasonable procedure in effecting the dismissal to ensure that the dismissal is not procedurally unfair.<\/p>\n<p>In addition to the above, and applicable to all employees (including those with less than 12 months&#8217; continuous service), there are a range of reasons for dismissal that are \u201cautomatically unfair\u201d, where an employee dismissed on these grounds may claim unfair dismissal regardless of procedure and or sufficient service. The automatically unfair reasons include pregnancy, maternity, adoption, health and safety, trade union membership, refusal to work on a Sunday, asserting a statutory right or for any discriminatory reason.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, additional considerations apply if large numbers of dismissals (redundancies) are planned?  How many employees need to be affected for the additional considerations to apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no statutory redundancy regime in Guernsey and no requirement on the employer to inform and consult on large scale redundancies. There is also no entitlement to statutory redundancy pay.<\/p>\n<p>There is, however, a code of practice for employers issued by the Committee for Employment &amp; Social Security on how to handle redundancies. This promotes the consultation of employees, trade unions and other representatives. The code has no statutory force, but assists employers to demonstrate that they have applied a fair and reasonable process in effecting the dismissal.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, additional considerations apply if a worker\u2019s employment is terminated in the context of a business sale?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Unlike the UK, and with a very limited exception solely relating to States of Guernsey employees, there is no specific statutory regulation protecting the position of private sector employees when the business, or part of a business is transferred from one owner to another. Therefore, employment contracts will not be transferred automatically to the new owner on a business transfer and there is no statutory protection against dismissal (save in respect of unfair dismissal). If the new owner wants to employ some or all of the existing employees, it is not required to maintain their existing pay and conditions. It has the option to offer employment to those employees, and the employees will need to agree to that offer of employment. This can be effected either by way of a novation of their employment and\/or employment contract or by an &#8216;offer and acceptance&#8217; of entirely new employment and employment terms. Continuity of service will however be preserved if any employees do accept employment with the new owner and transfer to the new employer.<\/p>\n<p>If the employees do not transfer to the new employer, and the old owner no longer has a requirement for the employees post transfer, its only option is to dismiss by reason of redundancy. Neither the new or old owner have a statutory obligation to inform\/consult the employees, trade unions or other representatives about the business transfer although it is considered best practice to do so.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do employees need to have a minimum period of service in order to benefit from termination rights?  If so, what is the length of the service requirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. An employee who has been employed for one year or more with the same employer has the right not to be unfairly dismissed. There are circumstances where such qualifying period does not apply, for example if the reason for dismissal is one of the automatically unfair reasons (see question 1).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, is the minimum notice period to terminate employment?  Are there any categories of employee who typically have a contractual notice entitlement in excess of the minimum period?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are statutory minimum periods of notice which are dependent on the employee&#8217;s length of service. A minimum of one week&#8217;s notice must be given by either party where an employee has been continuously employed for a period of one month or more but less than two years. This increases to a minimum of two weeks&#8217; notice after an employee has been continuously employed for two years or more but less than five years, and then to a minimum of four weeks&#8217; notice after an employee has been continuously employed for more than five years.<\/p>\n<p>In practice, however, employers, particularly those in financial services, often provide for a longer contractual period of notice, in which case, the contractual period will prevail.<\/p>\n<p>Where an employee has been found guilty of gross misconduct, contracts of employment generally permit dismissal without notice.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to make a payment to a worker to end the employment relationship instead of giving notice?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Providing the employment contract permits a payment in lieu of notice (&#8220;PILON&#8221;), then an employer can pay a lump sum rather than require the employee to serve out their statutory or contractual notice period. If there is no PILON clause in the contract and the employer purports to pay a PILON instead of requiring the employee to serve their notice period, this would constitute a technical breach of contract, in which circumstances, the PILON payment would represent damages for that breach.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer require a worker to be on garden leave, that is, continue to employ and pay a worker during their notice period but require them to stay at home and not participate in any work?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. An employer can require a worker to be on garden leave providing that there is an express contractual right to do so. If there is no contractual right and a worker is placed on garden leave, this would constitute a breach of contract, and similarly to making a PILON without a contractual right to do so, any payments made would represent damages for that breach.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does an employer have to follow a prescribed procedure to achieve an effective termination of the employment relationship? If yes, describe the requirements of that procedure or procedures. Is an employee entitled to appeal against their termination?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. There are no prescribed statutory procedures for employers to follow in effecting a fair termination of employment. However, the Committee for Employment &amp; Social Security have issued two codes of practice which set out procedures to follow when handling redundancies and in dealing with disciplinary matters. Any breach of the codes will not automatically render an employer liable to proceedings, but it will be taken into account by the Employment and Discrimination Tribunal (the &#8220;Tribunal&#8221;) when deciding whether the dismissal was fair.<\/p>\n<p>The &#8216;Code of Practice Disciplinary Practice and Procedures in Employment&#8217; (the &#8220;Disciplinary Code&#8221;) dictates that procedures should:<\/p>\n<ul>\n<li>be in writing;<\/li>\n<li>be applied equally and consistently to all staff;<\/li>\n<li>provide for matters to be dealt with quickly;<\/li>\n<li>indicate the disciplinary actions which may be taken;<\/li>\n<li>specify the levels of management which have the authority to take the various forms of disciplinary action, ensuring that immediate superiors do not normally have the power to dismiss without reference to senior management;<\/li>\n<li>provide for individuals to be informed of the complaints against them and to be given an opportunity to state their case before decisions are reached;<\/li>\n<li>give individuals the right to be accompanied by a trade union representative or by a fellow employee of their choice;<\/li>\n<li>ensure that, except for gross misconduct, no employees are dismissed for a first breach of discipline;<\/li>\n<li>ensure that disciplinary action is not taken until the case has been carefully investigated. Wherever possible, the person conducting the disciplinary hearing should not also conduct the investigation;<\/li>\n<li>ensure that individuals are given an explanation for any penalty imposed; and<\/li>\n<li>provide a right of appeal and specify the procedure to be followed. Preferably, the appeal should be conducted by someone not involved in the original hearing.<\/li>\n<\/ul>\n<p>A fundamental part of the Disciplinary Code requires that employees have a right to appeal against any disciplinary decision, including their dismissal. Failure to allow an employee to appeal a decision to dismiss may result in a finding of unfair dismissal.<\/p>\n<p>The &#8216;Code of Practice \u2013 Handling Redundancy&#8217; provides practical guidance on how best to deal with a redundancy situation, ensuring that decisions are made in a fair and consistent manner. The employer must initially show that there is a genuine redundancy situation and, if so, that measures have been taken to avoid or reduce the need for redundancy dismissals. If having explored alternatives, a redundancy situation is inevitable, an employer must show that sufficient consideration has been given to those likely to be affected and that a fair and objective criteria has been used to select those made redundant. Employees must be consulted with at every stage and the employer must show that it considered whether any alternative work could be offered. Similarly, to the Disciplinary Code above, employees must be given a right to appeal any redundancy decision.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If the employer does not follow any prescribed procedure as described in response to question 8, what are the consequences for the employer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If an employer fails to follow its own procedures and\/or the relevant Codes of Practice when dismissing an employee, the Tribunal will take that into account when considering the overall fairness of the dismissal. If the Tribunal takes the view that the dismissal was unfair, it will result in a finding of procedural unfair dismissal and a compensatory award will be awarded by the Tribunal to the employee. The value of compensatory award is currently six months&#8217; pay.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How, if at all, are collective agreements relevant to the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Although employees are protected against unfair dismissal based on their involvement with a trade union, there is no statutory recognition for trade unions in Guernsey and there is minimal legislation in relation to collective bargaining and collective agreements. These are mainly restricted to the public sector.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the employer have to obtain the permission of or inform a third party (e.g local labour authorities or court) before being able to validly terminate the employment relationship? If yes, what are the sanctions for breach of this requirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What protection from discrimination or harassment are workers entitled to in respect of the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Prevention of Discrimination (Guernsey) Ordinance 2002 (the &#8220;Discrimination Ordinance&#8221;), which came into force in October 2023, protects workers against discrimination, harassment and victimisation on the grounds of race, disability, carer status, sexual orientation, and religion and belief.<\/p>\n<p>It is also unlawful to discriminate on the grounds of sex, marital status, gender reassignment and pregnancy\/adoption and maternity\/adoption leave but these are covered under the Sex Discrimination (Employment) (Guernsey) Ordinance 2005 (the &#8220;Sex Discrimination Ordinance&#8221;).<\/p>\n<p>Protection from discrimination, harassment and victimisation on the ground of age has not yet come into force, therefore any discrimination on the basis of an employee&#8217;s age in Guernsey is not currently unlawful. It is expected that a second phase of discrimination legislation will be introduced in Q3 of 2027 which will include age as a protected ground. This second phase will also expand on the current protections under the Discrimination Ordinance to include sex, marital status, gender reassignment and pregnancy\/adoption and maternity\/adoption leave (and to repeal the Sex Discrimination Ordinance).<\/p>\n<p>There are seven types of discrimination prohibited under both Ordinances. These are:<\/p>\n<ul>\n<li>direct discrimination;<\/li>\n<li>indirect discrimination;<\/li>\n<li>discrimination by association<\/li>\n<li>discrimination arising from disability;<\/li>\n<li>failure to make reasonable adjustments;<\/li>\n<li>victimisation; and<\/li>\n<li>harassment.<\/li>\n<\/ul>\n<p>Any employee who is dismissed because of a discriminatory reason will be deemed &#8216;automatically&#8217; unfairly dismissed and entitled to compensation under both Ordinances of up to nine months&#8217; pay. See section 13 below for further details.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the possible consequences for the employer if a worker has suffered discrimination or harassment in the context of termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If the Tribunal upholds a complaint of discrimination or victimisation\/harassment in the context of termination of employment, the employer will be ordered to pay a compensatory award to the employee. The basic compensation for claims of discrimination relating to employment (other than claims of equal pay) is that a person is entitled to an award of:<\/p>\n<ul>\n<li>up to six months&#8217; pay, or 26 weeks&#8217; pay (if paid weekly); and<\/li>\n<li>an amount payable for injury to feelings up to \u00a310,000.<\/li>\n<\/ul>\n<p>Where there is more than one complaint or the complaint is combined with a claim for unfair dismissal, then the maximum award the Tribunal can make is:<\/p>\n<ul>\n<li>up to nine months&#8217; pay, or 39 weeks&#8217; pay (if paid weekly); and<\/li>\n<li>an amount payable for injury to feelings up to \u00a310,000.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are any categories of worker (for example, fixed-term workers or workers on family leave) entitled to specific protection, other than protection from discrimination or harassment, on the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Shop workers have certain rights not to be unfairly dismissed, or to suffer any other detriment, for refusing to work on a Sunday.<\/p>\n<p>Employees on maternity\/adoption leave have the right to return to their pre-maternity\/adoption leave job, or a suitable alternative role, on equivalent terms and conditions. If a redundancy situation arises while they are on maternity\/adoption leave, then the employee is entitled to be considered ahead of any other employees for suitable roles.<\/p>\n<p>However, unlike in the UK, employers can insert wording into fixed term contracts which require employees to waive their unfair dismissal rights where the termination of their employment is due to the expiry of their fixed term contract (i.e. either after the expiry of a specified period or where it has come to an end after a specific job\/project have completed).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are workers who have made disclosures in the public interest (whistleblowers) entitled to any special protection from termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. However, whilst there are no specific statutory provisions that protect a worker if they &#8216;blow the whistle&#8217;, that does not mean that a worker has no statutory protection if they do.<\/p>\n<p>For example, if an employee claims that their employer has breached a statutory right (such as the right not to be discriminated against or victimised, the right to be paid the minimum wage or the right to take maternity\/adoption leave etc.), and they are dismissed as a result of raising such a complaint, then this will amount to an automatic unfair dismissal.<\/p>\n<p>There is also specific protection if an employee raises concerns about health and safety. Again, if they are dismissed for raising any such concerns, this will amount to an automatic unfair dismissal.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In the event of financial difficulties, can an employer lawfully terminate an employee\u2019s contract of employment and offer re-engagement on new less favourable terms?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. There is no statutory protection for employers who are in financial difficulties. If an employer is in financial difficulties and needs to reduce its workforce, then it should make the employees redundant. Redundancy is a lawful reason for dismissal.<\/p>\n<p>Where an employer has no express power to change employment terms or cannot agree new terms with an employee, it may decide, as a last resort to terminate the existing employment contract and offer employment under new terms. The risk with this approach is that, if the employee does not accept the new terms offered to them, there has been a dismissal, and the employee is therefore able to claim unfair dismissal if the process in effecting that dismissal was not procedurally fair.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, risks are associated with the use of artificial intelligence in an employer\u2019s recruitment or termination decisions? Have any court or tribunal claims been brought regarding an employer\u2019s use of AI or automated decision-making in the termination process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The use of AI is quickly becoming part of everyday working life, and it can be used to perform certain HR tasks and employment management functions. Whilst it is efficient, it is not always accurate. One of the main concerns around using AI to carry out certain HR functions is the scope for potential discrimination. Due to the lack of transparency in how they work, there may be hidden prejudices\/bias in the software which may lead to discriminatory outcomes. If an employer relies on an AI generated recommendation, it may be that a characteristic which is a protected ground was a material factor in the decision.<\/p>\n<p>There is also a risk that using AI tools to make HR decisions may result in irrational or unfair decision making. It is hard for an employer to justify why a dismissal is fair when it has relied on AI for the decision and is unaware of factors and the weight that has been given to those factors for the decision to be generated. Without fully understanding the algorithm used or how the data has been interpreted, there is potential for an AI tool to lead to a dismissal which is substantively unfair. Of course, if an AI tool is used to terminate employment without a fair process being followed, it is also likely to be procedurally unfair.<\/p>\n<p>As at March 2026, there have not been any cases in Guernsey regarding an employer&#8217;s use of AI or automated decision making in the termination process.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What financial compensation is required under law or custom to terminate the employment relationship? How is such compensation calculated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Other than an employee&#8217;s contractual entitlements, there is no specific amount of financial compensation that needs to be paid on termination of employment.<\/p>\n<p>An employee is contractually entitled to receive any payments specified in their contract of employment such as notice pay, accrued but untaken holiday, awarded bonus payments (depending on contractual wording) etc.<\/p>\n<p>An employer can elect to make a discretionary termination payment to the employee; this is often wrapped up in a compromise agreement. There is no limit on the amount of that payment however, employers generally have regard to the Tribunal&#8217;s compensation limits when determining what is a suitable quantum for any termination payment (see section 19 below).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer reach agreement with a worker on the termination of employment in which the employee validly waives his rights in return for a payment? If yes, in what form, should the agreement be documented?  Describe any limitations that apply, including in respect of non-disclosure or confidentiality clauses.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. An employer and employee can enter into a compromise agreement, where the employee validly waives any rights they may have to bring a Tribunal claim or make any other claim against the employer arising out of their employment and\/or its termination, usually in exchange for a compensatory sum.<\/p>\n<p>For the compromise agreement to be valid it must comply with the following statutory conditions:<\/p>\n<ul>\n<li>the agreement must be in writing;<\/li>\n<li>the agreement must relate to particular proceedings;<\/li>\n<li>the employee must receive independent legal advice on the terms of the agreement (from either a lawyer or a certified officer of an independent trade union);<\/li>\n<li>the agreement must identify the adviser and require the adviser to sign a certificate to the agreement;<\/li>\n<li>the adviser has suitable insurance in place to cover the risk of their advice; and<\/li>\n<li>the agreement must state the conditions regulating compromise agreements are satisfied.<\/li>\n<\/ul>\n<p>Unlike the UK, there are no specific rules regarding non-disclosure or confidentiality clauses, although most precedent compromise agreements will contain clauses which permit disclosure in specific circumstances akin to the rights codified in the UK.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to restrict a worker from working for competitors after the termination of employment? If yes, describe any relevant requirements or limitations.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, it is possible to restrict an employee (Guernsey does not have the concept of a &#8216;worker&#8217;) from working for competitors after the termination their employment, however, the employer must act with caution when doing so. The starting point is that all post-employment restrictions are unenforceable, except to the extent that the employer can show that it has a legitimate business interest to protect. Therefore, any post-employment restrictions imposed on an employee must be reasonable in all the circumstances, having regard to the business itself, the specific role\/position the individual has within the business and must not go further than necessary to protect that legitimate business interest.<br \/>\nGuernsey employers tend to rely on a combination of post-termination restrictions, including non-compete restraints (for senior employees), non-dealing and non-solicitation of clients and non-solicitation of restricted employees.<\/p>\n<p>Generally, a court is more likely to find a restraint is reasonable if payment has been made for the period of the restraint, however, there is no statutory regulation around this and only a limited body of case law.<\/p>\n<p>The more refined and specific a restraint clause is drafted, the more likely it will be found to be enforceable by the court. Cascading restraint clauses are used in Guernsey.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to restrict a worker from soliciting customers or clients, or employees of the employer, after the termination of employment? If yes, describe any relevant requirements or limitations (including any payments that must be made to the worker for the restriction to be valid and enforceable).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. An employee&#8217;s contract of employment may contain non-solicitation restrictive covenants; however, such covenants are only enforceable to the extent that they are necessary to protect a legitimate business interest.<\/p>\n<p>Any post termination restrictions must be reasonable in all circumstances, having regards to the business itself, the nature of the employee&#8217;s role and their position and seniority within the business.<\/p>\n<p>The most common post-employment restrictions prohibit an employee from:<\/p>\n<ul>\n<li>competing against their former employer \u2013 this is mainly limited to senior employees or employees with a direct and real ability to impact an employer&#8217;s business;<\/li>\n<li>dealing with their former employer&#8217;s clients and intermediaries; and<\/li>\n<li>soliciting\/poaching clients and\/or key employees from their former employer.<\/li>\n<\/ul>\n<p>The restraints must not be too onerous or go above what is necessary to protect those legitimate business interests. The courts will interpret any restrictive covenant at the time it was entered into, and so it is important to review and either re-execute the existing restraints or enter into new restraint provisions each time an employee changes roles within the business.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an employer require a worker to keep information relating to the employer confidential after the termination of employment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Employment contracts generally contain ongoing confidentiality provisions that place an obligation on employees not to disclose an employer&#8217;s confidential information (as defined in the contract) both during and after their employment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are employers obliged to provide references to new employers if these are requested?  If so, what information must the reference include? What duties apply to employers giving references?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Unless there is a statutory obligation (applicable in some regulated sectors) or a written agreement to do so, there is generally no obligation on an employer to provide a reference. In practice, however, most employers are willing to provide as a minimum a standard form reference confirming the employee&#8217;s role and dates of employment.<\/p>\n<p>The general duties that apply to employers in providing references are to ensure that they are factually accurate \u2013 as any factually inaccurate reference or sharing of personal data without consent could found a contractual complaint in the Royal Court or a complaint to the ODPA, which is Guernsey&#8217;s data protection authority.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, in your opinion, are the most common difficulties faced by employers in your jurisdiction when terminating employment and how do you consider employers can mitigate these?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are a number of difficulties faced by employers when terminating someone&#8217;s employment, some of the more prevalent ones in Guernsey are:<\/p>\n<p><strong>Mental health<\/strong><\/p>\n<p>We know from the Work and Wellbeing Strategy 2025 \u2013 30 produced by the States of Guernsey in May 2025 that 30% of all Social Security sickness claims are mental health related. When an employee suffers from, or is off work with, mental health issues, employers must tread carefully especially if they are proposing to dismiss the employee for another reason &#8211; such as capability or misconduct.<\/p>\n<p>Often disabilities are present where there are mental health issues and employers have strict obligations under the Discrimination Ordinance to make reasonable adjustments for employees with disabilities. What constitutes a disability under the Discrimination Ordinance is intentionally broad, and so employers are expected to focus on adjustments to enable the employee to work or return to work (rather than debate over whether an employee is actually disabled). It is always a tricky path to navigate, and employers must do so with care so as to avoid costly implications in the Tribunal. When contemplating the dismissal of an employee who claims that they are suffering with their mental health, it is advised that employers take a more cautious approach to:<\/p>\n<ul>\n<li>clearly identify the genuine reason for the dismissal;<\/li>\n<li>carry out a reasonable investigation into the employee&#8217;s medical position;<\/li>\n<li>consider, and where required, implement reasonable adjustments;<\/li>\n<li>follow a fair procedure; and<\/li>\n<li>ensure that the decision to dismiss falls within the range of reasonable responses open to the employer.<\/li>\n<\/ul>\n<p><strong>Recruitment challenges once an employee has been dismissed<\/strong><\/p>\n<p>Ideally, termination of employment should be the last resort, however, once an employee has been dismissed, providing it is not by reason of redundancy, there is then the challenge of having to recruit someone else into that role. Guernsey is a small island with a limited skilled workforce, and employees are often brought in from overseas to fill the gaps which can be costly for the employer in terms of recruitment and relocation costs. This makes getting recruitment right a priority for Guernsey employers.<br \/>\nAll employees must have employment permits to work in Guernsey, and those permits are dictated by the role performed by the employee in the organisation. Where a role is not an &#8216;essential role&#8217;, recruitment must occur from within Guernsey which, given the small geographical size of the island, can limit options in many industries.<\/p>\n<p>Employers should properly do their due diligence on the individual and ensure that not only are they are suitably qualified and capable of doing the role, but they are the right cultural fit for their organisation. Probationary periods should be properly utilised to determine whether an employee should be afforded permanent employment. Far from being just being a tick box exercise, it should be a properly considered process which includes 360 feedback before making any final decisions on permanent employment.<\/p>\n<p>Once they are in post, employers should invest in training to ensure that the individual remains qualified and capable to do the role.<\/p>\n<p>Ensure that annual appraisals are completed so that any training and development needs can be addressed. It also gives both the employer and the employee the opportunity to raise any issues that they may be experiencing, giving the employer the opportunity to rectify matters before they escalate.<\/p>\n<p>When finding the right person for a role can be difficult and costly, try to avoid promoting an employee internally before they are ready as it is often setting them up to fail and will either ultimately lead to capability issues further down the line or the wrong person in post.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are any legal changes planned that are likely to impact the way employers in your jurisdiction approach termination of employment? If so, please describe what impact you foresee from such changes and how employers can prepare for them?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The biggest legal change that is due to come into effect next year is phase two of the Discrimination Ordinance. This will introduce age as a protected characteristic meaning that employment policies specifying a mandatory retirement age could be discriminatory.<\/p>\n<p>In preparation for this, employers should review their contracts of employment and remove any mandatory retirement ages (unless it can be objectively justified), review policies, train mangers and review recruitment and promotion practices to avoid any potential discrimination.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4870<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/136970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=136970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}