Vanuatu, a tropical archipelago in the South Pacific, is a hidden gem known for its stunning landscapes and vibrant culture. Comprised of 83 islands, Vanuatu offers visitors breathtaking white sandy beaches, crystal-clear turquoise waters, and lush rainforests with cascading waterfalls. The country’s unique blend of Melanesian tradition and modern influences creates a rich cultural tapestry.
Under the Employment Act of Vanuatu, a contract of employment for an unspecified period is one without a fixed end date and is subject to a probationary period of 3 months, after which the employee is deemed to be a permanent employee. Fixed-term contracts are limited to a maximum duration of 4 years, and any contract stipulating a period exceeding this limit is treated as a contract of employment for an unspecified period.
Permanent employees (those on contracts of unspecified duration) are entitled to statutory protections such as notice of termination and severance allowance when their employment is terminated.
Written and oral employment contracts are recognized in Vanuatu. However, employment relationships that will exceed 6 months must be made in writing. Employment that requires an employee to reside in a place outside his ordinary place of residence must also be concluded in writing. Employment contracts concluded in writing are exempt from any stamp duty, taxes, or levies.
The labor code in Vanuatu does not define temporary in terms of time; however, the Public Service Act designates a limit of 6 months for temporary employment of workers employed by the Public Service Commission. Whereas there is no provision for temporary employment in the private sector, following the limit prescribed for public sector employees can be beneficial. Employers should be aware that employing workers under successive temporary employment agreements will not disqualify the worker from the same entitlements as a permanent employee where the employee has been in service for a period longer than 12 months.
Temporary Employment Agencies
Employment agencies are regulated by law in Vanuatu. Every employment agency must obtain a current, valid license. This license can be obtained by submitting the appropriate application to the Commissioner of Labor and paying the prescribed fee. Furthermore, any employment contract made for employees who are placed and recruited by employment agencies must be submitted to the Commissioner for approval before work commences.
Seasonal Employment
Citizens of Vanuatu may work as seasonal employees in New Zealand. Such employees may be recruited by employment agencies to fill vacancies. Employment agencies that recruit and place workers in positions of seasonal employment must secure a license specifically for seasonal employment. In order to be considered for seasonal employment, the worker must be at least 21 years of age and meet a variety of administrative criteria. The agency must orient the employee and inform them of general requirements, including securing a work visa. Seasonal employment agencies must keep records regarding all employees placed in seasonal work. See Time-keeping and Reporting.
The Employment Act provides for a probationary period of 3 months at the beginning of a contract of employment. During the probationary period, either the employer or the employee may terminate the contract of employment at any time without giving notice. Once the probationary period ends, the employee is automatically regarded as a permanent employee, and the probationary period cannot be extended or renewed beyond its original duration.
“Hours of work” means the time an employee is at the employer's disposal and does not include rest periods when the employee is not at the employer’s disposal.
Full-time employment is not defined in Vanuatu labor law. The maximum number of hours an employee may work in a week is 44 hours. The employee may only work 6 days out of the week and up to 8 hours a day. Employers must provide work for employees according to their contracts. If the employer has no work for the employee, the employer still must pay the employee for the hours of work agreed upon in the contract.
Every employee who has worked for the same employer is entitled to the following:
1 to 6 years of employment, the employee is entitled to a leave paid in full at a rate of 1.25 working days per month for each year of employment
7 to 19 years of employment, the employee is entitled to a leave paid in full at a rate of 1.75 working days per month for each year of employment
The rate of annual leave increases to 3 working days after 20 years, 4 working days after 25 years, and 6 working days of after 30 years of service, whether continuous or not.
Annual leave should be taken in 1 period but can be taken in no more than 2 if the employee and employer agree. Annual leave may be taken wholly or partly in advance before the employee has acquired entitlement to it.
Employees who have continuous employment with the same employer for more than 3 months are entitled to paid sick leave. This leave is 21 working days every year. When an employee wishes to benefit from this entitlement, they must notify the employer as soon as practicable unless the employer is already aware of their condition. This only applies if they reside within Port Vila or Luganville and are sick for more than 2 days or more than 4 days when residing in any other city. The employee must secure a medical certificate of illness to produce to the employer. The medical certificate used for showing good cause for absence from work shall not be valid in respect of any period in excess of 4 days before the employee was examined by the medical practitioner.
Employees are entitled to 12 weeks of paid maternity leave at a rate of 66% of their normal salary. An employer may not allow an expecting employee to work for the first 6 weeks after the delivery date. The employee may take up to 6 weeks before delivery. Employers may not dismiss employees who are absent due to maternity leave or because of an illness related to pregnancy and certified by a medical practitioner. Absences caused by illnesses related to pregnancy are only protected for up to 3 weeks.
Vanuatu's labor law does not currently contain any provisions for paternity leave.
A contract for an unspecified period may be concluded when the notice period given by either party to the employment contract expires. Notice may be written or verbal and can be given at any time. If the employee has been in service for at least 3 years, then the notice period cannot be less than 3 months. In any other case, employees paid at intervals of 14 days or more must receive at least 14 days’ notice before the end of the month in which notice is given, while employees paid at intervals of less than 14 days must receive notice at least equal to their pay interval.
At the employee’s request, the employer must give the employee paid time off in order to search for new employment during the notice period. The notice does not have to be given when the employer pays the employee their wages in lieu of giving notice.
When an employment contract is terminated, the employer owes the employee remuneration, allowances, payments in lieu of holiday (when the holiday has not been taken), payment in lieu of notice period (when notice has not been given), and severance pay.
Certain kinds of employees are owed severance upon termination, provided that they have been employed for at least 12 consecutive months.
Severance pay is calculated based on length of service: an employee is entitled to 1 month’s remuneration for each full 12-month period of continuous employment, and for any partial year, a pro-rated amount equal to 1/12th of 1 month’s remuneration multiplied by the number of completed months of continuous service.
