Ending an employment contract in Algeria: resignation, dismissal, retirement and the papers you hand over

An employment contract ends in one of the nine cases listed in article 66 of Law No. 90-11: the end date of a fixed-term contract, resignation, dismissal, a workforce reduction, retirement, the business closing down, total incapacity for work, death, or the contract being void. In every case you give the employee a work certificate (art. 67), you pay what you still owe them, including untaken leave, and you report their departure to CNAS. A dismissal for serious misconduct requires written notice and a hearing with the employee (art. 73-2). Without that procedure, the court cancels it.

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In short

Ways a contract ends
Nine cases set by Law 90-11 (art. 66)
Resignation
In writing, with the notice period of the collective agreement (art. 68)
Serious misconduct
Written notice, a hearing, help from a colleague (art. 73-2)
Severance pay
Permanent contract: one month per year worked, up to 15 months (art. 72)
Unfair dismissal
Reinstatement or at least 6 months' pay (art. 73-4)
On departure
Work certificate (art. 67) and exit reported to CNAS
Contents

The nine ways a contract ends under the law

Article 66 of Law No. 90-11 of 21 April 1990 on employment relations lists the cases in which the employment relationship ends. In a small business, three situations come up most often: the end of a fixed-term contract (CDD), a resignation and a dismissal for serious misconduct. Each has its own rules. The table below sums them up, and the sections that follow give the detail.

CaseLegal basisWhat the employer does
End of a fixed-term contractLaw 90-11, art. 12, 14 and 66Check the contract fitted a case allowed by law, then settle the departure
ResignationArt. 68Get the resignation in writing and let the notice period of the collective agreement run
Dismissal for serious misconductArt. 73 to 73-4Follow the procedure (written notice, hearing, assistance). No dismissal notice period and no severance pay
Dismissal without serious misconductArt. 72, 73-5 and 73-6Give the dismissal notice period and, for a permanent contract, severance pay
Workforce reductionArt. 69 to 71, Legislative Decree 94-09Try other options first, negotiate, then select staff on the criteria set by law
RetirementLaw 83-12, art. 6 and 10Wait until the employee has received notice that the pension is granted
Business closureArt. 66 and 73-6Honour the dismissal notice period, even if the business closes
Who decides and what the employer does

End of a fixed-term contract: check the contract first

A fixed-term contract ends on the date set in the contract (art. 66). Before that date, read it again. Law No. 90-11 allows a fixed-term contract in five cases only (art. 12), for example to replace an absent employee or to cope with extra work. A fixed-term contract signed outside these cases is treated as a contract of indefinite duration (art. 14). Its "end" then becomes the termination of a permanent contract, and the dismissal rules apply.

Resignation: a letter and a notice period

Resigning is the employee's right (art. 68). An employee who wants to leave hands in a written resignation and leaves the job after a notice period, whose length is set by the applicable collective agreement. Keep the dated and signed letter: it proves that the employee chose to leave.

Dismissal for serious misconduct

A disciplinary dismissal is only possible for serious misconduct (art. 73), and serious misconduct means dismissal with no notice period and no severance pay. Besides serious offences punished by criminal law and committed at work, the law lists in particular an employee who:

  • refuses without valid reason to carry out instructions linked to their duties, given by their managers in the normal exercise of their authority
  • discloses work information without permission, such as techniques, production processes, organisation or internal documents
  • takes part in a collective, concerted work stoppage that breaks the law
  • commits acts of violence
  • deliberately damages buildings, machines, raw materials or other objects used for work
  • refuses to carry out a requisition order served under the law
  • drinks alcohol or takes drugs at the workplace

To decide whether the misconduct is serious, the law asks you to weigh the circumstances, how far it went and how grave it was, the harm caused, and how the employee behaved up to that date (art. 73-1). One late arrival from an employee with a clean record does not weigh the same as an act of violence.

The procedure, step by step

  1. 1

    Gather the facts

    Write the facts down with the date, the place and any witnesses, and keep the evidence. A dismissal that breaks the law is presumed unfair, and you must prove otherwise (art. 73-3).

  2. 2

    Invite the employee

    Invite them in writing to a meeting, stating what they are accused of, the date and the place. Remind them that they may bring a co-worker of their choice from the business.

  3. 3

    Hear them

    The law requires the employer to hear the employee (art. 73-2). Listen to their explanation and write up a record of the meeting.

  4. 4

    Give the decision in writing

    Hand over the dismissal decision in writing (art. 73-2), against signature or by registered letter, stating the misconduct and the end date of the contract.

  5. 5

    Settle the departure

    Hand over the work certificate, pay the salary due and the leave earned, then report the exit to CNAS.

Dismissal without serious misconduct: notice and severance pay

A dismissed employee who has not committed serious misconduct is entitled to a dismissal notice period (délai-congé), whose minimum length is set by collective agreements (art. 73-5). During this period they get two paid hours a day, which can be added up, to look for another job. You may also release them from working the notice period by paying the full pay they would have earned over that time (art. 73-6).

Example: an employee on a permanent contract for 4 years, whose best monthly average over the last three years is 40,000 DA, is entitled to 4 months, or 160,000 DA of severance pay, on top of the notice period and any untaken leave.

Workforce reduction (economic grounds)

When economic reasons justify it, the employer may reduce its workforce (art. 69). The decision is taken after collective bargaining, and afterwards you may not recruit again at the same workplaces in the job categories affected. Before that, the law requires you to use every means of limiting job losses, such as shorter hours, part-time work, retiring staff who qualify, or a transfer to another activity or business (art. 70). An employee who turns down a transfer is entitled to severance pay for workforce reduction. The staff affected are selected in particular on length of service, experience and qualifications (art. 71).

Above 9 employees, Legislative Decree No. 94-09 of 26 May 1994 adds a duty: the reduction must be part of a "social component" presented to the participation committee and the representative unions at meetings called for that purpose (art. 5 and 10). Employees who lose their job for economic reasons may be covered by the unemployment insurance scheme created by Legislative Decree No. 94-11 of the same day.

Retirement

Retirement ends the employment relationship (art. 66). Since Law No. 16-15 of 31 December 2016, an employee may claim a pension from age 60 after at least 15 years of work, and a female employee may retire at her request from age 55 (Law No. 83-12, art. 6). The employee may also choose to keep working for up to five years beyond that age. During that period you cannot retire them.

Other cases

  • Business closure: it ends the contracts (art. 66) but does not release you from the dismissal notice period (art. 73-6).
  • Total incapacity for work, as defined by law (art. 66).
  • Death of the employee (art. 66).
  • The contract being void or legally revoked (art. 66).

An employee who leaves to start a business

Since Law No. 22-16 of 20 July 2022, an employee may take, once in their career, unpaid leave or part-time work to start a business, for up to one year, which can exceptionally be extended by up to 6 months (art. 56 bis and 56 bis 1). If their absence could seriously harm the business, you may postpone their departure by up to 6 months, after consulting the participation committee (art. 56 bis 2). If they start their business and do not ask to return at least one month before the leave ends, the employment relationship ends (art. 56 bis 4 and 56 bis 5).

What you must pay on departure

AmountWhen it is dueLegal basis
Salary up to the last dayIn every caseEmployment contract
Payment for leave earned but not takenIn every caseLaw 90-11, art. 39, 41 and 52
Dismissal notice period, worked or paidDismissal without serious misconduct, business closureArt. 73-5 and 73-6
Severance payPermanent employee dismissed without serious misconduct, including for workforce reductionArt. 70 and 72
Compensation set by the courtDismissal cancelled or found unfairArt. 73-4
Amounts to plan for

An employee cannot give up their annual leave (art. 39). They earn two and a half days per month worked, up to 30 calendar days a year (art. 41), and leave pay equals one twelfth of the pay received during the reference year (art. 52). Count the days earned but not taken and pay them with the last salary. The employment relationship can be neither suspended nor ended during annual leave (art. 49): wait until the employee is back before ending the contract.

Documents to hand over and to keep

5 documents0 / 5

CNAS and tax formalities

You report an employee's departure on the CNAS e-declaration portal. After each contribution return, the portal takes you to the staff movements statement (EMS, état des mouvements des salariés). There you add the employee who left during the period and select "Sortie" (exit). The annual declaration of salaries (DAS) also has an entry date and an exit date for each employee.

StepDeadlineWhere
Report the exit in the staff movements statementWith the contribution return for the period of the departureCNAS e-declaration portal
Pay contributions on the last salary30 days after the end of the quarter (fewer than 10 employees) or monthCNAS
Pay over the income tax withheld from the last payG n°50 by the 20th of the following month, or G n°50 ter each quarter under the IFUTax office
Enter the exit date in the DASWithin 30 days after the end of the yearCNAS
The departure calendar

After your last employee leaves

If your company carries on with no staff, it may no longer need an office, only a registered office address. Neuron Cowork offers business domiciliation in Dely Brahim for 6,000 DA a month, with a notarised contract for one or two years. If you stop trading, closure ends the remaining contracts (art. 66), but the dismissal notice period is still owed (art. 73-6). Our company closure guide covers the next steps.

Registered address in Dely Brahim

Your head office in Algiers. Notarised contract ready within 3 days at most.

  • 1-year or 2-year contract
  • ID document and birth certificate
  • Your mail received for you

6,000 DA/ month

Common mistakes

  • Dismissing on the spot after an incident, with no invitation, no hearing and nothing in writing.
  • Calling something serious misconduct when you cannot prove it.
  • Accepting a spoken resignation, with no dated and signed letter.
  • Letting a fixed-term contract "run out" when it did not fit any case of article 12.
  • Leaving untaken leave out of the final payment.
  • Not handing over the work certificate.
  • Forgetting to report the exit in the CNAS staff movements statement.
  • Retiring an employee before they have received notice that their pension is granted.

Two ways to get it done

This guide is all you need to do it yourself. Neuron does not do bookkeeping or routine tax and social returns; we can, however, provide your registered address.

  1. 1I do it myself

    The free guide

    Everything you need is on this page: documents, deadlines, a filled-in example.

  2. 2An address for your head office

    Domiciliation in Dely Brahim

    Your registered office in Algiers, with a 1 or 2 year notarised contract and your mail received.

    6,000 DA/ month

    Register my company

Frequently asked questions

What notice must an employee give when resigning?

The notice set by the collective agreement that applies to your business (art. 68 of Law No. 90-11). The resignation must be in writing. If the employment contract repeats the length set by the agreement, the employee knows it from the day they are hired.

How much does a dismissal cost?

For serious misconduct, there is no notice period and no severance pay (art. 73), only the salary due and the leave earned. Without serious misconduct, you owe the dismissal notice period (art. 73-5) and, for a permanent contract, one month's pay per year worked, up to 15 months (art. 72), plus the leave earned.

Can the employee bring someone to the meeting?

Yes. They may be assisted by a worker of their choice from the business (art. 73-2). Say so in the invitation.

What does an employer risk for an unfair dismissal?

Reinstatement of the employee with their acquired benefits or, if either side refuses, compensation of at least 6 months' pay, plus any damages (art. 73-4). If only the procedure was breached, the dismissal is cancelled and the employee receives at least the pay they would have earned by continuing to work.

Is the work certificate compulsory?

Yes, at the end of every contract, whatever the reason (art. 67). It gives the hiring date, the end date and the jobs held with the matching periods.

How do I report the departure to CNAS?

On the e-declaration portal, in the staff movements statement (EMS) that follows your contribution return: add the employee and select "Sortie" (exit). The exit date then appears in that year's DAS.

Can I retire an employee who has turned 60?

Only after the notice granting their pension has been issued (Law No. 83-12, art. 10). The employee may also choose to keep working for up to five years beyond the legal age, and during that period you cannot retire them (art. 6).

Can Neuron handle these formalities?

No. We do not give employment law advice and we do not do bookkeeping or routine returns (DAS, G n°50, G n°50 ter): our free guides are enough to do them yourself. If your company carries on with no staff, we can domicile it in Dely Brahim for 6,000 DA a month.

Official sources

  1. [1]Law No. 90-11 of 21 April 1990 on employment relations, art. 12, 14, 39, 41, 49, 52, 66 to 72 and 75, Official Journal No. 17 of 25 April 1990
  2. [2]Law No. 91-29 of 21 December 1991 amending Law No. 90-11 (art. 73 and 73-1 to 73-6), Official Journal No. 68 of 25 December 1991
  3. [3]Ordinance No. 96-21 of 9 July 1996 amending Law No. 90-11 (art. 12 bis, 73-4 and 146 bis), Official Journal No. 43 of 10 July 1996
  4. [4]Legislative Decree No. 94-09 of 26 May 1994 on preserving employment (art. 5 and 10) and Legislative Decree No. 94-11 of 26 May 1994 creating unemployment insurance, Official Journal No. 34 of 1 June 1994
  5. [5]Law No. 16-15 of 31 December 2016 amending Law No. 83-12 on retirement (art. 6 and 10), Official Journal No. 78 of 31 December 2016
  6. [6]Law No. 22-16 of 20 July 2022 supplementing Law No. 90-11 (leave to start a business, art. 56 bis to 56 bis 5), Official Journal No. 49 of 20 July 2022
  7. [7]CNAS: e-declaration guide (staff movements statement, DAS file)
  8. [8]CNAS: employer section (deadlines for contributions and the DAS)
  9. [9]DGI: tax return forms (G n°50, G n°50 ter)

Written and checked by the Neuron Cowork team, Dely Brahim. Checked on .

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