GENI & KEBE | View firm profile
From the early days of his mandate, President Donald Trump decided, by decree, to suspend foreign development aid for the duration of a budget review (“Stop Work Order”).On January 24, 2025, the State Department ordered all American government agencies, including USAID, to stop working on international aid programs and to freeze expenditures for a review period of eighty-five (85) days.
The following summarizes key Senegalese labor law provisions that may offer solutions to addressing employee status concerns related to the stop order. For information, please check our website and LinkedIn.
Solutions for Workers with Employee Status
Considering placing staff on technical unemployment (1), terminating the trial period, or at the limit, negotiating departures (2) seem more interesting and less risky.
Technical Unemployment
When a company or structure employing people is in a conjunctural challenge, Article L 65 of the Labor Code permits the company to place all or part of the personnel (under CDD or CDI) on technical unemployment, subject to compliance with the rules organizing its procedure.
Therefore, for the agencies impacted by the government’s decision, technical unemployment could well be an option under the provisions of the Senegalese Labor Code, particularly the aforementioned article, and the duration provided for the suspension of international aid (85 days), for the agencies impacted by the government’s decision.
Termination during the probation period
Article 23 of the National Interprofessional Collective Agreement provides each party the right to terminate the contract without compensation or notice. It is important to understand that the probation period is particularly regulated under Senegalese labor law, so it is necessary to ensure full compliance with the legal provisions before considering it.
Mutual separation
According to Article L 64 of the Labor Code, the employer and the worker(s) can, through an amicable termination protocol, negotiate freely and fairly.
Solution for Service Provider
Service providers do not have employee status. They are governed by the provisions of the Civil and Commercial Obligations Code (COCC). The concerned American agencies will have the possibility to negotiate an amendment with them to suspend their contract during the period provided under the stop order, or to explore the possibility of terminating their contract due to the Stop Work Order considered as a force majeure event.
Finally, in the face of the American government’s decision to suspend international aid, development agencies in Senegal are confronted with a situational challenge but have interesting temporary solutions, notably technical unemployment. If the suspension becomes definitive at the end of this 85-day period, they can consider economic layoffs or negotiated departures.
Yankhoba NDIAYE, Lawyer, Partner Employment & Immigration, and Ousmane Aliou LY, PhD, Associate Employment & Immigration are part of our Employment and Immigration Practice. We have accompanied several companies and entities in the implementation of these solutions, ensuring compliance with legal procedures and minimizing risks for the employer. Contact us to benefit from our expertise and personalized assistance.