Employment law
Receipt in full and final settlement in Mali: a useful record, not a waiver
A 30 June, at the counter of Quincaillerie du Djoliba. Ousmane, a salesman dismissed on economic grounds after seven years with the firm, signs the receipt in full and final settlement handed to him by the manager, cashes his cheque and leaves. The manager files the document away: “The case is closed.” It is not. In Mali, this signature extinguishes no rights.
Quincaillerie du Djoliba and the people mentioned in this article are fictitious: they are used as examples only.
1. What exactly are we talking about?
Quincaillerie du Djoliba employs 25 people in Bamako. Like many companies, it has each departing employee sign a receipt in full and final settlement: a document that lists the sums paid at the end of the contract, which the employee signs to acknowledge receipt.
The Malian Labour Code does not require this document. It does, however, require three things on departure:
| Obligation on departure | Text |
|---|---|
| Pay the salary and allowances as soon as the work comes to an end | Labour Code, article L.103 |
| Issue a payslip detailing each element of remuneration | Articles L.104 and L.105 |
| Issue a certificate of employment | Article L.61 |
Payment must therefore be made without delay: when the contract ends or is terminated, the salary and allowances are paid as soon as the service comes to an end (Labour Code, article L.103).
The most common mistake
Believing that the employee has only six months to challenge the receipt, after which it becomes final. That rule is French. It does not exist in Malian law, which takes the opposite approach.
In Mali, signing “in full and final settlement” wipes out no rights.
2. What the Labour Code actually says
The words “in full and final settlement”, or any equivalent wording, signed by the employee at the end of the contract and by which they waive all or part of their rights, cannot be relied on against them (Labour Code, article L.111). To rely on a document against someone means using it to deny them a right: here, the employer cannot rely on the receipt to refuse to pay what is still owed.
The Code goes further: accepting a payslip without protest, signing it or signing the payment register does not amount to waiving payment of all or part of the remuneration (article L.110).
Why this rule? An employee who is leaving needs their money straight away. They sign what they are given. The law prevents them from losing their rights through a mere signature.
What you need to do
- Remove from receipt templates any wording about waiver or a six-month period for challenge.
- Pay all sums due at the end of the contract, without making payment conditional on a signature.
3. Three years to make a claim
A claim for payment of salary, bonuses, allowances and any sum due in respect of work is time-barred after three years (Labour Code, article L.118). Time-barring is the loss of the right to act once the deadline has passed. The period runs from the date on which the sums are due (article L.119).
It is interrupted by a certificate from the labour inspector to whom the dispute has been referred, or by a court summons (article L.120). A request for conciliation to the labour inspector suspends it until the report closing the attempt (article L.190).
Example. Ousmane earned a basic salary of XOF 180,000 and a monthly performance bonus of XOF 40,000. The manager calculated severance pay on the basic salary only and forgot the special allowance for economic dismissal.
Remuneration to be used: 180,000 + 40,000 = XOF 220,000
Rate for seven years: 5 × 20% + 2 × 25% = 150%
Severance paid: 180,000 × 150% = XOF 270,000
Severance due: 220,000 × 150% = XOF 330,000
Special allowance forgotten: one month’s gross salary, i.e. XOF 220,000
Still owed despite the receipt: (330,000 − 270,000) + 220,000 = XOF 280,000
Fourteen months later, Ousmane refers the matter to the labour inspector. He is within the three-year period, and his receipt cannot be relied on against him: the hardware store must pay the XOF 280,000. Severance pay is indeed calculated on all payments made in return for work, bonuses included (Labour Code, article L.53), and economic dismissal gives entitlement to a special allowance of one month’s gross salary (article L.48).
What you need to do
- Calculate each allowance on full remuneration, bonuses included, excluding expense reimbursements.
- Keep the calculations and proof of payment for at least three years after departure.
- Respond quickly to any claim: time works for the employee, not for the employer.
4. A record that remains useful
The receipt does not protect against a claim, but it proves what was paid and on what basis. A detailed receipt prevents disputes; a lump sum without detail is of no use.
| Item to detail | Text |
|---|---|
| Last month’s salary and overtime | Articles L.103 and L.137 |
| Pay in lieu of notice, if the notice period is not worked | Articles L.41 and L.42 |
| Severance pay or retirement payment | Articles L.53 and L.55 |
| Special allowance for economic dismissal | Article L.48 |
| Pay in lieu of paid leave | Article L.162 |
For a fixed-term contract, the precarity payment must be added: 2.5% of total gross remuneration, in the absence of a collective agreement (Decree No. 96-178/P-RM, article D.24-1, as amended by Decree No. 2022-0125/PT-RM).
The non-compete clause trap
Many templates include a line for a “non-compete payment”. The Malian Labour Code regulates the clause (six months at most, within a radius of 15 kilometres) without requiring any financial consideration (article L.17). Only include it if the contract provides for it.
5. A closer look: how to truly close a disagreement
To settle a dispute with a departing employee for good, go through the labour inspector. The employer and the employee may ask the inspector to settle the dispute amicably (article L.190). If they agree, the conciliation report is made enforceable by order of the president of the labour court (Labour Code, article L.191): it can then be enforced like a judgment.
Another route is termination by mutual agreement: a freely signed protocol, setting an allowance at least equal to the statutory severance pay, a copy of which is sent to the labour inspectorate (article L.50 bis).
Key takeaways in 5 points
- Remember that in Mali, the receipt in full and final settlement cannot be relied on against the employee: it is not a waiver.
- Forget the six-month deadline: it is a French rule, with no Malian equivalent.
- Allow three years from the date each sum is due for the employee’s claims.
- Detail each sum paid and calculate allowances on full remuneration, bonuses included.
- Use conciliation before the labour inspector to close a disagreement for good.