Micronesia is a collection of beautiful tropical islands situated in the western Pacific Ocean. It is composed of four main island states: Yap, Chuuk, Pohnpei, and Kosrae. Known for its pristine beaches, crystal-clear waters, and vibrant marine life, Micronesia is a paradise for nature lovers and diving enthusiasts. The islands are surrounded by stunning coral reefs, offering excellent opportunities for snorkeling and scuba diving to explore the colorful underwater world. Beyond its natural beauty, Micronesia is rich in cultural heritage, with traditional practices and customs still embraced by the local communities.
Employment relationships in the private sector are governed by the principles of individual employment contracts, while public sector employment relationships are determined primarily by reference to constitutional, statutory, and regulatory provisions. There is no right to continued private sector employment. Employees who have completed their probation (according to their contracts) are considered permanent. The employment-at-will doctrine avows that when an employee does not have a written employment contract and the term of employment is of indefinite duration, the employer can terminate the employee for good cause, bad cause, or no cause at all.
In the Public Employment Law, permanent employees are those who are appointed to a position in the public service after successfully completing a probation period. They are not employed through a contract that has a specific date of termination.
Employment contracts can be made in any form – written, oral, or implied – in the Federated States of Micronesia. There is no law that requires employment contracts to be in writing in order to be enforceable. The employment-at-will doctrine avows that, when an employee does not have a written employment contract and the term of employment is of indefinite duration, the employer can terminate the employee for good cause, bad cause, or no cause at all.
When an employee is presented with an employee handbook, instructed to read the handbook, told to sign off on the handbook, and when the employee does so, the employee handbook will constitute a unilateral contract between the parties. Such a contract must explicitly state the employee's position, construed employment, compensation, leaves of absences, additional employment, benefits, performance evaluations, and termination.
The Federated States of Micronesia has employment at will in the private sector, where employment can be terminated at any time, for any reason, by either party. The terms of an employment relationship are governed by employment contracts. There are no specific provisions for temporary employment in the private sector.
In the public sector, employees can be hired on a temporary basis for positions required in the public interest. Such roles do not exceed 6 months' duration. In case of emergencies, temporary employees can be hired for a maximum of 10 days.
Nonresident workers may be employed as temporary employees for up to 90 days without being subject to standard labor regulations. Employers can request extensions for an additional 90-day period if needed, subject to approval by the chief labor authority. However, the total duration of temporary employment, including extensions, cannot exceed 180 days.
In the Federated States of Micronesia, private sector employees can be subject to a probationary period if it is included in their employment contract. In the public sector, there is a mandatory probationary period of at least 6 months, not exceeding 1 year.
There are no statutory limits on working hours in the Federated States of Micronesia for private sector. Working hours are agreed upon in the employment handbooks or contracts. In the public sector, standard working hours are 8 hours a day or 40 hours a week.
In the Federated States of Micronesia, annual leave for private sector employees are determined according to the information provided in their workplace employee handbook or employment contract. In the public sector, annual leave entitlements are determined by specific government regulations.
In the Federated States of Micronesia, there is no statutory requirement for private-sector employers to provide sick leave to their employees. Leave entitlements, including sick leave, are typically governed by individual employment contracts or company policies. Therefore, the availability and terms of sick leave for private-sector employees depend on the agreements between employers and employees. Public-sector employees, in contrast, are entitled to sick leave as per their regulations.
In the Federated States of Micronesia, private sector employees are not entitled to statutory maternity or sick leave, with such benefits depending on individual employment contracts or company policies. Public sector employees are granted 12 weeks of paid maternity leave per year, applicable to all national employees regardless of their status. This leave does not roll over if unused and cannot be substituted with annual or sick leave. Employers may require a doctor’s certificate confirming the pregnancy and expected delivery date.
There are no provisions for paternity leave in the Federated States of Micronesia.
There is no statutory requirement for notice period in the private sector in the Federated States of Micronesia. Employers can include the required notice period in their employee handbooks or employment contracts. The Supreme Court has ruled that where an employer terminates an employee without proper notice the termination will be given effect at the end of the proper notice period and the employee is entitled to any compensation they would have received during that period. Employees can be terminated without notice only in case of justified reasons.
In case of dismissal of a permanent employee in the public sector, a written notice setting forth the specific reasons for the dismissal must be given. A copy of the notice must be sent to the Personnel Officer.
There are no statutory provisions for severance pay in the Federated States of Micronesia.
