SUSPENSION OF EMPLOYMENT DUE ECONOMIC OR TECHNICAL REASONS

Suspension of employment is when the employer requests the employee to leave work for a certain period of time and it may a paid suspension or un paid depending on the mutual understanding between the employer and employee. There many form of suspension, however in this insight, we will look at suspension of employment due to economic or technical reasons.

Suspension of employment due to economic or technical reasons is provided for within the meaning of Article 18(4), and 21 of the Law No. 66 of 2018 Regulating Labour in Rwanda. This is mainly caused by economic set-back of companies in their earnings and hence facing financial distress. Considering the current global high rocket rise in prices (fluctuation) for commodities probably brought by Russian – Ukraine war has affected the economic industries and businesses worldwide and in the process many companies are facing financial setbacks in their finances.

In order for companies to survive the current economic difficulties, companies are looking at implementing the available possible legal remedies in securing financial stability and one of them is suspension of employment. Unfortunately, this is a very difficult choice to make by most of companies, however companies cut down employees on certain positions as provided for by the labour law. (Article 18(4), and 21 of Law No. 66 of 2018 Regulating Labour in Rwanda)

It is further, to note that without prejudice to other provisions of the Law governing employment in Rwanda under, Article 40(2), 66, 31 of Law No. 66 of 2018 Regulating Labour in Rwanda provides that employees being laid off have to receive equal salary for work done in arrears, and any other entitlements and terminal benefits in the reasonable period possible.

Note: Disclaimer on this content should not be taken as legal advice, and MK Associated Advocates will not be held accountable for any legal actions the reader may take referring to this, but rather can reach out for a formal legal advice(s) and legal opinions at our office on the above address and contacts.