Calculator T-04
Statutory severance, redundancy and notice pay calculator
Check whether an employee qualifies, how much notice is due, the tiered severance or cesantía amount and the full termination payout — with the statutory steps and the Ministry or Industrial Court procedure for eight Caribbean jurisdictions.
Reviewed 6 Nov 2026 · 2026 statutory rulesT-04
Severance & notice calculator
2026 rules · runs in your browserStatutory tiers by jurisdiction
Caribbean severance law is tiered by length of service and, in most islands, payable only on redundancy (retrenchment). Using a US at-will template is the most common and most expensive mistake foreign employers make: tribunals in Trinidad and Tobago and Jamaica regularly award compensation on top of the statutory minimum where procedure was not followed.
| Jurisdiction | Statute | Qualifies after | Formula | Notice |
|---|---|---|---|---|
| Jamaica | ETRPA | 104 weeks | 2 weeks/yr (1–10), 3 weeks/yr (11+) | 2–12 weeks by tenure |
| Trinidad & Tobago | RSBA | 1 year | 2 weeks/yr (1–4), 3 weeks/yr (5+) | 45 days retrenchment notice |
| Barbados | Cap. 355A | 104 weeks | 2.5 / 3 / 3.5 weeks per year, max 33 years | 2–8 weeks by tenure |
| Guyana | TESPA | 1 year | 1 / 2 / 3 weeks per year, cap 52 weeks | 2 weeks; 1 month after 1 year |
| Dominican Republic | Law 16-92 | 3 months | Cesantía 5 / 13 days, 21 days/yr, 23 days/yr after 5 | Preaviso 7 / 14 / 28 days |
| The Bahamas | Employment Act | 12 months | 2 weeks/yr (cap 24) or 1 month/yr managerial (cap 48 wks) | 1–2 weeks; 1 month managerial |
| St. Lucia | Labour Code | 1 year | Benchmark 2 weeks/yr (1–10), 3 weeks/yr after | Benchmark 1–8 weeks |
| Cayman Islands | Labour Act | 1 year | Benchmark 1 week/yr, cap 12 weeks | 1 pay period |
St. Lucia and Cayman figures are benchmarks marked as such in the result; confirm them with local counsel for a live case.
Worked example: Barbados redundancy after 14 years
Procedure is where the claims come from
The statutory payment is the floor. Most disputed cases turn on process: whether the employee and union were consulted, whether selection criteria were objective, whether notice went to the Ministry in time and whether payment was made within the statutory window. The calculator lists the minimum procedural steps for the selected island. The redundancy and Industrial Court playbook walks through a full restructuring.
Straight answers
FAQs
How is redundancy pay calculated in Jamaica?
After 104 weeks of continuous service, the employee is entitled to 2 weeks’ pay for each year of service up to 10 years and 3 weeks’ pay for each year above 10, where weekly pay is annual pay divided by 52.
What is the severance formula in Trinidad and Tobago?
Under the Retrenchment and Severance Benefits Act, a retrenched worker with at least one year of service receives 2 weeks’ basic pay per year for years 1–4 and 3 weeks’ basic pay per year from year 5.
What is cesantía in the Dominican Republic?
Cesantía is the severance due when an employer ends a contract without cause: 5 days’ wages for 3–6 months of service, 13 days for 6–12 months, 21 days per year for 1–5 years and 23 days per year after 5 years, plus preaviso, proportional 13th month and vacation.
Does the Barbados Severance Fund refund employers?
Employers who pay statutory severance can claim a rebate from the NIS Severance Fund, modelled here at 25% of the payment.
Is severance due if an employee is dismissed for misconduct?
Generally no, where the dismissal is for proven serious misconduct after a fair process. The calculator covers redundancy and termination without cause.
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