Explanatory notes on Recycling fees

  1. Recycling fees - applicable under the Employment Rigts Act (Repealed)

    Recycling fee was applicable where an employer terminated the employee’s contract of employment under certain conditions.

    The Employment Rights Act was repealed and replaced by the Workers Rights Act on 24 October 2019. Under the new legislation, the Portable Retirement Gratuity Fund has been introduced and recycling fee is not applicable.

  2. Employers liable to recycling fees

    All employers, including a job contractor and a person who shares the profit or gross earnings of a shareworker, are liable to pay recycling fees.

    However, the following employers are not required to pay recycling fees:

    1. Employer in the sugar industry in respect of employees who voluntarily retires.

    2. Government in respect of public officers

    3. Local authority/Statutory in respect of  employees who are entitled to a pension or a compassionate allowance under a pension law

    4. Other employers in respect of part-time workers, migrant worker or a non-citizen and employees having less than 180 days continuous employment.

  3. Rates

    The rates at which recycling fees are paid are as follows:

    No. of months of continuous employmentRate paid for every 12 month of continuous employment
    Between 12 months and up to 120 months 6 days’ basic wage or salary
    Above 120 months up to 240 months 10 days’ basic wage or salary
    More than 240 months 15 days’ basic wage or salary
  4. Base

    Recycling fee were payable on the basic wage or salary of the employee and were not subject to a maximum.

  5. Due date

    The payment of recycling fees were ought to be made within 30 days from the date the employee’s contract has been terminated or 30 days from the date of expiry of the determinate agreement.

  6. Claim and recovery of recycling fee due

    The Director-General may issue claim to employers in respect of any unpaid recycling fee and recover the amount due.

External Links : CATA |  ATAF |  WCO  |  Trade Obstacles Alert | Mauritius Trade Easy