Separation benefits can be distinguished depending on the reasons for dismissal. Severance pay refers to any situation contemplated by Article 4 of Convention No. 158. The notion of ‘severance pay’ refers to individual dismissals, and these must be for a valid reason. The valid reason, however, could be related to the conduct or the capacity of the employee – or to the needs of the undertaking.

Redundancy payments refer to termination payments that arise from terminating a worker on economic grounds, such as redundancy or restructuring. The notion of “redundancy” refers to what happens when an employer no longer wishes the job an employee was doing to be done, by anyone. Thus, restructuring of a business, for instance, may lead to redundancy of a job or position. And so, to termination of employment. However, redundancy (and thus termination) can also occur outside a context of collective dismissal.

In some national systems, no distinction between the two types of payment is made. The amounts of severance and redundancy payments often vary depending on worker’s tenure in the enterprise. Their amount is generally calculated based on the worker’s wage, expressed either as a number of days, weeks or months. Convention No. 158 offers flexibility by leaving it up to national governments to define the best way of protecting workers in case of dismissal (Art. 12). In fact, separation benefits are just one possible type of protection, as workers may receive unemployment insurance or assistance benefits, or other forms of social security, or a combination of such allowance and benefits.

Show data for

Approximately 2/3 of EPLex countries provide for at least some redundancy pay

  • Redundancy and severance pay provisions
  • Redundancy pay provisions only
  • No data

Amount of severance pay (in months) per length of tenure

YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
Year(s) Country Country Remark Region 6MONTHS 9MONTHS 1YEAR 2YEARS 4YEARS 5YEARS 10YEARS 20YEARS
2013 Afghanistan Afghanistan There is no general right to severance pay upon termination of employment except when such termination is based on the following reasons:
- cessation of activities for more than 6 months,
- dissolution of the employer's business or downsizing,
- criminal conviction which hinders the continuation of the work,
- employee's refusal to be re-assigned to his/her previous position.
Thus, employees who have been dismissed for other reasons (i.e conduct or capacity based reasons) are not entitled to severance pay.
The amounts to be paid vary according to the length of service, as follow:
- if the length of service is 1 year: one month' salary [not clear if it also applies to 6 and 9 months, this needs to be checked upon proper translation of the original text] ;
- from 1 up to 5 years of service: 2 months' salary;
- from 5 up to 10 years of service: 4 months' salary;
- more than 10 years of service: 6 months' salary (art. 25(3) LC)
Asia 0 0 0 0 0 0 0 0
2013 Ethiopia Ethiopia Art. 40 (1) &(2) LP:
Severance pay amounts to:
- 30 times the average daily pay of the last week of service for the first year of service. (For less than one year of service, severance pay should be calculated in proportion of the period of service),
- If the worker has served for more than a year, severance pay shall be increased by 1/3 of the previous sum (that is 10 days' wages) for every additional year of service, within a limit of a total amount of 12 months' wages.

[In addition to these amount, the worker is entitled to 30 days' wages in case of constructive dismissal: art. 41 LP]
Africa 0.5 0.75 1 1.33 2 2.33 4 7.33
2013 Ghana Ghana Africa 0 0 0 0 0 0 0 0
2013 Nigeria Nigeria No statutory severance pay. Africa 0 0 0 0 0 0 0 0
2013 Philippines Philippines No severance pay following termination for a just cause.

- Dismissal for an authorized cause:

1) Disease (employee who has been found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees) Art. 284 LC.
Severance pay shall amount to at least one month's salary or to one-half month's salary for every year of service, whichever is greater, a fraction of at least six months being considered as one whole year.

2) Economic reasons: redundancy payment differs according to the situation: art. 283 LC.
* It amounts to at least one month's salary or to one-half month's salary for every year of service, whichever is greater in case of retrenchment to prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses.

* However, in case of termination due to the installation of labor-saving devices or redundancy, redundancy payment is higher: it amounts to at least his one (1) month's pay or to at least one (1) month's pay for every year of service, whichever is higher.

Asia 1 1 1 1 2 2.5 5 10
2013 Sri Lanka Sri Lanka Under the Payment of Gratuity Act [PGA], upon any termination of employment, every employer who employs 15 or more shall pay to any monthly-paid employee who has worked for at least 5 years a gratuity gratuity payment which amounts to half a month's salary for each completed year of service, or 14 days' wages per year of service for non-monthly paid workers.
This indemnity is payable regardless of the reason for termination (resignation, dismissal, retirement, death of the worker, by operation of law, or otherwise). See sec. 5(1) and 6 PGA.
Asia 0 0 0 0 0 2.5 5 10
2013 Syrian Arab Republic Syrian Arab Republic Termination by notice does not automatically entail severance pay.

Under the LL, workers are entitled to severance pay only when the contract terminates in the following instances (art. 62 LL):
1- Whenever both parties agree in writing to terminate the contract.
2- Whenever workers reach the age of 60, save in case of a fixed-term contract exceeding such date. In this case, the contract shall expire on expiry date thereof. In any case, Social Security Law shall be observed in respect of pension eligibility age and the right of workers to continue working until completion of the qualifying service or until the age of 65, whereupon the contract shall automatically expire.
3- Upon the death of the worker.
4- In the event of total disability, for any reason whatsoever.
5- Whenever the worker contracts a disease requiring work interruption for no less than one hundred and eighty consecutive days, or intermittent periods exceeding, in total, two hundred days per one single contractual year.
6- In case of force majeure.

In those instances, employers shall pay workers who are not covered by the Social Security Law, a severance pay at the rate of one month' wages for each year of service. Workers shall further be entitled to receive severance pay for any fraction of a year on a pro rata basis. (art. 63 (a) LL).
Arab States 0 0 1 2 4 5 10 20
2013 United Arab Emirates United Arab Emirates According to art. 132 FLLR, a worker who has completed one year or more of continuous service is entitled to severance pay (also referred to as "end of service gratuity") at the end of his employment. Severance pay is calculated as follows:
- 21 days' wages for each year of the first five years of service; and
- 30 days' wages for each additional year, provided that the total amount does not exceed 2 years' wages.
A worker shall be entitled to severance pay for any fraction of a year during which he actually served, provided that he has completed one year of continuous service (art. 133 FLLR)

There is no entitlement to severance pay if the employee is terminated for one of the reasons set out in Article 120 of the Labour Law (those entailing summary dismissal) (art. 139 FLLR).
Arab States 0 0 0.7 1.4 2.8 3.5 8.5 18.5
2013 Yemen Yemen According to art. 120(2) LC, at end of their service, where employees are not entitled to monthly pension or a lump-sum payment pursuant to the Social Insurance Act or other regulations, they shall be entitled to receive severance pay equivalent to at least one month's wages for each year of service (calculated on the basis of the last wage received by the employee).
Arab States 0.5 0.75 1 2 4 5 10 20
2017 Albania Albania Europe 0 0 0 0 2 2.5 5 10
2017 Angola Angola No severance pay following a disciplinary dismissal.
However workers dismissed by way of individual or collective economic dismissal are entitled to redundancy pay (see below).
Africa 0 0 0 0 0 0 0 0
2017 Bangladesh Bangladesh Severance pay is payable to a worker who has been continuously employed for at least one years in the event of a:
- Termination based on physical or mental incapacity or continued ill-health(referred to as 'discharge') (sec, 22(2) LA)
- Termination with notice without any reason (sec. 26(4) LA).
In both cases, severance pay amounts to 30 days' wages for each completed year of service or for any part thereof in excess of six months: see sec. 2(x) LA on the definition of gratuity). Additionally, workers are entitled to 45 days' wages for each completed year above 10 completed years (see sec. 2(x) LA).
In case a worker is dismissed for misconduct other than theft, misappropriation, fraud, embezzlement, breaking in the establishment, „riot“ or “disordeliness“, they are entitled to a severance pay of at least 15 days' wages for each completed year of service (sec. 23(3) LA).
Asia 0 1 1 2 4 5 10 20
2017 Bolivia Bolivia Art. 13 of the Labour Code: When an employer or worker is dismissed for a reason other than his/her own will, the employer must compensate him/her for the service, with the amount of one month salary for every year of work. If the time of service does not amount to one year, compensation will be proportional to the number of worked months, excluding the three first months which are considered probationary period. If the employee has worked for more than 8 years, he/she will perceive the compensation even if he/she voluntarily leaves the job.

No severance pay if the worker was dismissed with just cause.
Americas 0.25 0.5 1 2 4 5 10 20
2017 Cambodia Cambodia Article 89 LC: If the worker is dismissed for a reason other than serious misconduct, the employer must pay an indemnity for dismissal. The amount of the indemnity depends upon the employee's length of continuous service:
- for employment from 6 to 12 months: 7 days wages and benefits;
- for employment over 1 year: 15 days wages and benefits for each year of employment, up to a maximum of six months' wages.
This only applies to contracts of an unspecified duration.

Note that art. 73 LC provides that: at the expiration of a fixed-term contract (the end of the term or completion of the task), the employer must pay the employee severance pay which may be fixed by collective agreement but should not in any case be less than 5 per cent of the total wages paid during the length of the contract.
Asia 0.23 0.23 0.5 1 2 2.5 5 6
2017 China China See art. 46 and 47 ECL:
Severance pay amounts to one month's pay per year of service. For the purpose of calculating severance pay, an employment period ranging from 6 months to 1 year is to be counted as one year. If the employee has worked for less than 6 months, he will be entitled to half a month's pay.

If the monthly wage of a worker exceeds three times the average monthly wages of employees in the municipality where the employer is located, severance pay shall be paid to him at the rate of three times the local average monthly wages and and shall be for not more than 12 years of work.

See also Art. 27 of Implementing Regulations of the PRC Employment Contracts Law.
Asia 1 1 1 2 4 5 10 20
2017 Denmark Denmark * White-Collar workers:
Sec. 2a ESEA:
In case of dismissal of a salaried employee having worked continuously in the same enterprise for 12 or 17 years, the employer shall pay a sum corresponding to, respectively, 1 or 3 months' salary.
* Blue-collar workers: no statutory severance pay. Severance pay is regulated by collective agreements.
Europe 0 0 0 0 0 0 1 3
2017 Egypt Egypt Africa 0 0 0 0 0 0 0 0
2017 Estonia Estonia There is no general right to severance pay upon dismissal except in the event of economic dismissal (see below). Europe 0 0 0 0 0 0 0 0
2017 Georgia Georgia Art. 38 LC states that:

1. In terminating the labour agreement on any of the grounds stipulated by Article 37(1)(a, f, i, n) of this Law, the employer shall give the employee at least 30 calendar days’ prior written notice. Besides, the employee shall be granted a severance pay of at least one month’s salary within 30 calendar days after the termination of the labour agreement.
2. In terminating the labour agreement on any of the grounds stipulated by Article 37(1)(a, f, i, n) of this Law, the employer may give the employee at least three calendar days prior written notice. In such case, the employee shall be granted a severance pay of at least two months’ salary within 30 calendar days after the termination of the labour agreement.
3. If the labour agreement is terminated on the initiative of the employee on the ground stipulated by Article 37(1)(d) of this Law, the employee shall give the employer at least 30 calendar days’ prior written notice.
Europe 1 1 1 1 1 1 1 1
2017 Germany Germany Europe 0 0 0 0 0 0 0 0
2017 Italy Italy Europe 0 0 0 0 0 0 0 0
2017 Macedonia, The Former Yugoslav Republic of Macedonia, The Former Yugoslav Republic of There is no general right to severance pay upon dismissal except in the event of an economic dismissal (see below).
Europe 0 0 0 0 0 0 0 0
2017 Moldova, Republic of Moldova, Republic of Only for dismissals based on the worker's capacity, state of health and insufficient qualifications: art. 186 (2) LC. Europe 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5
2017 Mongolia Mongolia The employer must pay severance in an amount equal to at least 1 month's average salary in the event the employee was terminated on the following grounds (art. 42 LC):
- the employee has been called to active duty in the army;
- the employer's business entity or organisation, or a branch or unit has been dissolved, or the job or position within it has been discontinued or the number of employees has been reduced;
- the employee fails to meet the job's requirements due to the lack of professional qualifications or skill, or health reason.
- the employee reached 60 years of age and is eligible to receive a pension.
An employee dismissed for conduct-related reasons is not entitled to severance pay.
Asia 1 1 1 1 1 1 1 1
2017 Montenegro Montenegro Under the 2008 Labour Law, there was no general right to severance pay upon dismissal except in case of redundancy. Following the 2011 amendments, the right to severance pay has been extended to other non-economic valid grounds of dismissals, namely poor performance (failure to meet the expected results) , refusal to conclude an annex amending the employment contract with respect to the definition of wages. In addition, two new economic grounds have been added, namely economic difficulties and technical, technological or structural changes as a result of which an employee is no longer needed (see under redundancy pay). However, when an employee is dismissed on one of the other valid grounds listed in art. 143 LL, he/she is not entitled to severance pay.

The amount of severance pay has also changed.
Under art. 94 LL, modified in December 2011, severance pay must amount to at least 1/3 of the employee's monthly pay in the last six months (less the taxes and contributions) for each year of employment with the employer, or 1/3 of the average monthly pay less the taxes and contributions in Montenegro, if the latter is more favourable for the employee (art. 94(1) LL). In any case, severance pay must not be lower than three average monthly wages in the last six months less taxes and contributions by the employer, or the average monthly wages less taxes and contributions in Montenegro in the last six months, if the latter is more favourable for the employee.
New in 2011: The law introduces a calculation method based on the employee's length of service. In addition, the law provides for a minimum amount of 3 months' pay which may either be based on the employee's salary in the last 6 months, or the average salary in Montenegro in the last 6 months, whichever is more favourable to the employee. Under the 2008 LL, they was no such seniority-based calculation method and the law only provided for a fixed amount of severance pay of at least 6 month's pay on the basis of the average salary (excluding taxes and contribution) in Montenegro in the month preceding the dismissal (and not the employee's salary).

Employees with disabilities are entitled to higher severance pay. There has not been any change in this respect in the 2011 amendments. Severance pay amounts to:
* at least 24 average monthly wages, if the disability resulted from injury not related to work or from illness;
* at least 36 average monthly wages, if the disability resulted from an work injury or a professional disease.
(Severance pay shall be based either on the employee's salary , or the average salary in Montenegro whichever is more favourable to the employee) (art. 94(3)(c) LL).
Europe 3 3 3 3 3 3 3.33 6.67
2017 Romania Romania No statutory severance pay.
However, the employees dismissed for reasons not related to their person shall benefit from active measures designed to fight unemployment and may enjoy compensations under the terms of the law and the applicable collective labour agreement. LC, Art. 67,2003
Europe 0 0 0 0 0 0 0 0
2017 Saint Lucia Saint Lucia Section 161 LA: (1) The Minister may, after consultation with the trade unions and the employers’ organizations, make
Regulations relating to severance.
(2) Until such time as the Minister makes Regulations pursuant to subsection (1), the existing collective agreements and practices relating to severance shall continue.

See also section 144 LA: where an employee is dismissed for misconduct or for unsatisfactory performance or for breach of contract in accordance with this Division, he or she is entitled to remuneration and accrued leave up to and including the date of the dismissal.
Americas 0 0 0 0 0 0 0 0
2017 Saudi Arabia Saudi Arabia The Labour Law provides in art. 84 for an end-of-service award that shall be due at the end of the work relation, no matter the reason of termination of employment (retirement, end of the fixed-term contract, "force majeure", resignation). Such award shall amount to half-month wages for each of the first five years of service and one-month wages for the following years. It is however reduced in case of resignation.
Arab States 0.25 0.33 0.5 1 2 2.5 7.5 17.5
2017 Serbia Serbia The provision on severance pay (art. 190) has been deleted from the 2005 Labour Law. Europe 0 0 0 0 0 0 0 0
2017 Sweden Sweden Europe 0 0 0 0 0 0 0 0
2017 United States United States Americas 0 0 0 0 0 0 0 0
2019 Algeria Algeria No statutory severance pay in the LRA.
However, under the Collective Framework Agreement of 2006, an employee is entitled to severance pay : 1) if he/she is dismissed for reasons not connected with the commission of a serious misconduct and 2) if he/she has at least 2 years of service with the same employer.
The amount of severance pay cannot be less than 15 days' wages per year of service, calculated on the basis of the last salary.
__________________
Pas de disposition à ce sujet dans la LRA. Toutefois, l'article 63 de la Convention collective de 2006 dispose que "le salarié licencié pour d’autres motifs que la commission d’une faute professionnelle grave et justifiant d’une ancienneté d’au moins deux (02) ans au service du même employeur, ouvre droit à une indemnité de licenciement qui ne peut être inférieure à quinze (15) jours par année d’ancienneté, calculée sur la base de sa dernière rémunération, inclus les primes et indemnités liées au poste de travail."

Africa 0 0 0 1 2 2.5 5 10
2019 Australia Australia Asia 0 0 0 0 0 0 0 0
2019 Azerbaijan Azerbaijan Amendments were made on this issue in 2017, as follows:

Art. 70 LC lays out grounds for the employer to terminate a labour contract:
a. Liquidation of the enterprise;
b. Staff cuts;
c. Employee’s incompetence (dismissal performed upon the approval of the attestation commission);
d. Employee’s gross violation of labor duties, neglect for labor functions or obligations stated in the employment contract. ;
e. Employee’s failure to justify work potential during the trial period;
f. Employee in a state-financed enterprise reaching the working age limit

Art. 77(3) LC dictates that workers dismissed for the reasons of an enterprise liquidation (Art. 70 a) or staff cuts (Art. 70 b) should be reimbursed:
1 year of experience – an average monthly wage
1- 5 years of experience - at least 1.4 of the average monthly wage
5-10 years of experience – at least 1.7 of the average monthly wage
More than 10 years of experience – at least 2 of the average monthly wage

According to Art. 77 (7) LC, the dismissal on the grounds of changing labour conditions (Art. 68 c), call for a military or alternative service (Art. 74 a) and employee’s inability to perform labour functions due to incapability to work continuously for more than six months, the employer pays at least two months of the average monthly wage.

Upon employers initiative (in accordance with the 12th Chapter of the LC dictating the procedure on the termination of labour contracts), the employee is not entitled to a severance payment if dismissed under Article 70 (c,d,e,f). The workers, however, have a right to appeal the decision to the Court.
Europe 0 0 0 0 0 0 0
2019 Belgium Belgium Europe 0 0 0 0 0 0 0 0
2019 Brazil Brazil Americas 0 0 0 0 0 0 0 0
2019 Bulgaria Bulgaria No statutory severance pay except:
- upon termination of employment due to an illness for employee of at least 5 years of service: 2 months' gross remuneration (art. 222 (2) LC);
- upon termination after the employee has acquired the right to a pension : 2 months' pay or 6 months' pay for a job tenure of 10 years (art. 222 (3) LC).
Europe 0 0 0 0 0 0 0 0
2019 Burkina Faso Burkina Faso No provision in the LC. However, severance pay is governed by art. 35 of the Inter-occupational Collective Agreement:
A worker is entitled to severance pay provided he has been employed continuously for a period of at least one year and he has not committed any serious misconduct. Severance pay corresponds to a percentage of the monthly overall wages per year of service and is set according to the length of service as follows:
*25% per year during the first 5 years;
*30% per year during the subsequent 5 years;
*40% per year after the tenth year.
Africa 0 0 0.25 0.5 1 1.25 2.75 6.75
2019 Cameroon Cameroon * Art. 37 LC

* Art. 1 and 2 of the Order N° 016 of 26 May 1993:
- A worker is entitled to severance pay provided he has been employed for at least two years and he has not committed any serious misconduct.
- Severance pay corresponds to a percentage of the monthly overall wages per year of service and is set according to the length of service as follows:
*20% per year during the first 5 years
*25% per year from the 6th to the 10th year
*30% per year from the 11th to th 15th year
*35% per year from the 16th to the 20th year
*40 % per year after the 21st year
Africa 0 0 0 0.4 0.8 1 2.25 5.5
2019 Central African Republic Central African Republic Africa 0 0 0 0 0 0 0 0
2019 Comoros Comoros Article 48 of the Labour Code (former art. 50): severance pay for all types of dismissals is to be defined by decree after consultation of the Advisory Council of Labour and Employment (former Supreme Labour Council) and must take into account, in particular, worker's tenure and professional categories. Africa 0 0 0 0 0 0 0 0
2019 Congo, Democratic Republic Congo, Democratic Republic No general right to severance pay.

However commercial workers may be entitled to severance pay.
See, the Observation made by ILO Committee of Experts on the Application of Conventions and Recommendations in 2008 under the Termination of Employment Convention No. 158:
"The Government indicated that the provisions of this Article of the Convention are given effect to only by a Memorandum of Understanding concluded in October 1999 between company heads of the commerce sector represented by the Congolese Federation of Enterprises (FEC) and various trade union organizations, which provides for payment of a severance allowance, the amount of which depends on the length of service. The Committee noted that the Memorandum of Understanding was concluded under section 49 of the Labour Code which provides that a worker whose employment has been terminated may also be paid a termination allowance if the contract or collective agreement so provides. In this respect, the Committee recalls, once again, that under Article 1 of the Convention, where the provisions of the Convention are not made effective by means of collective agreements, arbitration awards or court decisions or in such other manner as may be consistent with national practice, they shall be given effect to by laws or regulations. The Committee also recalls that under Article 12, paragraph 1, a worker whose employment has been terminated is entitled to a severance allowance or any other form of income protection or benefit, and trusts that the Government will take the necessary steps to give effect to this provision of the Convention for workers who are not covered by the Memorandum of Understanding in the commerce sector or any other collective agreement, and that it will provide this information in its next report. The Government is also requested to indicate the manner in which it gives effect to Article 12, paragraph 3, under which, in the event of termination for serious misconduct, provision may be made for loss of entitlements or allowances by the methods of implementation referred to in Article 1 of the Convention".

- Please note that no information was found as whether this 1999 memorandum of understanding, which provides for severance pay for commercial workers upon termination, is still in force.
- Please also note that the provision concerning severance pay on which the memorandum of understanding was based (art. 49 LC) refers to the former 1962 Labour Code and has been repealed in the 2002 Labour Code.
Africa 0 0 0 0 0 0 0 0
2019 Côte d'Ivoire Côte d'Ivoire Décret No. 96-201:
- Art.1.- "La résiliation du contrat de travail du fait de l’employeur entraîne pour le travailleur ayant accompli une durée de service effectif égal à un an et qui n’a pas commis de faute lourde, le paiement d’une indemnité de licenciement distincte du préavis."
- Art. 3- "L’indemnité est représentée pour chaque année de présence accomplie dans l’entreprise par un pourcentage déterminé du salaire global mensuel des douze mois d’activité qui ont précédé la date de licenciement. (...) Le pourcentage est fixé en fonction de l’ancienneté du travailleur à :
• 30 % jusqu’à la cinquième année comprise;
• 35 % pour la période allant de la sixième à la dixième année comprise;
• 40 % pour la période s’étendant au-delà de la dixième année.
________
In English:
Art. 3 Decree N°96-201:
A worker is entitled to severance pay provided he has been employed continuously for a period of at least one year and he has not committed any serious misconduct. Severance pay corresponds to a percentage of the monthly overall wages for each year of service and is set according to the length of service as follows:
* 30% up to and including the fifth year;
* 35% from the sixth to the tenth year;
* 40% above 10 years of service.
Africa 0 0 0.3 0.6 1.2 1.5 3.25 7.25
2019 Finland Finland No statutory severance pay.

Employers employing at least 30 workers must provide free vocational coaching or training courses to workers, which they have terminated based on economic reasons and which have worked for them for at least 5 years, sec. 13, chap. 7 ECA. This entitlement can be waived by collective agreement, sec 7(11), chap. 13 ECA.
Europe 0 0 0 0 0 0 0 0
2019 Gabon Gabon Arts. 70 and 73 LC:
A worker is entitled to severance pay provided he has been employed for at least two years and he has not committed any serious misconduct.
Severance pay corresponds, as a minimum, to 20 % of the monthly overall wages per year of service.
Africa 0 0 0 0.4 0.8 1 2 4
2019 Greece Greece Act. 4093/2012, subparagraph IA.12, sections 2 and 3 Europe 0 0 0 1 1 1.5 2.5 6
2019 Hungary Hungary Sec. 77 LC:
Severance pay - following a dismissal (including on economic grounds) or the dissolution of the employer - varies according to the length of service, as follows:
* 1 month's pay for at least 3 years of service;
* 2 months' pay for at least 5 years of service;
* 3 months' pay for at least 10 years of service;
* 4 months' pay for at least 15 years of service;
* 5 months' pay for at least 20 years of service;;
* 6 months' pay for at least 25 years.

•The amount of severance pay:
a) after at least 3 years of service, shall be increased by one month’s pay,
b) after at least 10 years of service, shall be increased by two month’s pay,
c) after at least 20 years of service, shall be increased by three month’s pay, if the employment relationship is terminated inside the five-year period before the date when the employee reaches the age limit for old-age pension. (LC, sec. 77(4)).

•The employee shall not be entitled to receive severance pay if: a) he/she is recognized as a pensioner at the time when the notice of dismissal is delivered or when the employer is terminated without succession, or b) he/she is dismissed for reasons in connection with his/her behavior in relation to the employment relationship or on grounds related to the employee’s ability but other than health reasons. (LC, sec. 77(5)).
Europe 0 0 0 0 1 2 3 5
2019 Indonesia Indonesia Art. 156 - Manpower Act
(1) Should termination of employment take place, the entrepreneur is obliged to pay the dismissed worker severance pay and or a sum of money as a reward for service rendered during his or her term of employment and compensation pay for rights or entitlements.

(2) The calculation of severance pay as mentioned under subsection (1) shall at least be as follows:
a. 1 (one)-month wages for years of employment less than 1 (one) year;
b. 2 (two)-month wages for years of employment up to 1 (one) year or more but less than 2 (two) years;
c. 3 (three)-month wages for years of employment up to 2 (two) years or more but less than 3 (three) years;
d. 4 (four)-month wages for years of employment up to 3 (three) years or more but less than 4 (four) years;
e. 5 (five)-month wages for years of employment up to 4 (four) years or more but less than 5 (five) years;
f. 6 (six)-month wages for years of employment up to 5 (five) years or more but less than 6 (six) years;
g. 7 (seven)-month wages for years of employment up to 6 (six) years or more but less than 7 (seven) years;
h. 8 (eight)-month wages for years of employment up to 7 (seven) years or more but less than 8 (eight) years;
i. 9 (nine)-month wages for years of employment up to 8 (eight) years or more.
(...)

•In the event the termination on the grounds of absence for five consecutive workdays without explanation, the worker is not entitled to any severance pay or long service pay, but he will be entitled for compensation pay and separation money in accordance with the work agreement, company regulation or collective elabour agreement(Art. 168 (3) MA)

•However, if a worker is terminated on the grounds of violation of the terms of employment, he will be nonetheless entitled to severance pay, long-service pay and compensation pay.

•Under 161 (1) MA, A worker/ labourer may make an official request to the institute for the settlement of industrial relation disputes to terminate his/her employment relationship with his/ her entrepreneur if:
a. The entrepreneur has battered, rudely humiliated or intimidated the worker/ labourer;
b. The entrepreneur has persuaded and/or ordered the worker/ labourer to commit acts that run against statutory laws and regulations; or
c. The entrepreneur has not paid wages at a prescribed time for three months consecutively or more;
d. The entrepreneur has not performed obligations promised to workers/ labourers;
e. The entrepreneur orders the worker/ labourer to perform work outside of that which has been agreed upon by the worker/ labourer to undertake;
f. The entrepreneur has ordered the worker/ labourer to carry out work that puts the worker/ labourer’s life, safety, health and or morality in jeopardy, of which the worker/ labourer is not made aware or informed at the time the worker/ labourer’s employment agreement was made.
(2) In the event of termination of employment because of reasons as referred to under subsection (1), the affected worker/ labourer is entitled to receive severance pay amounting to twice the amount of severance pay stipulated under subsection (2) of Article 156, reward pay amounting to 1 (one) time the amount of reward pay for period of employment worked stipulated under subsection (3) of Article 156 and compensation pay for entitlements left unused according to what is stipulated under subsection (4) of Article 156.
Asia 1 1 2 3 5 6 9 9
2019 Jordan Jordan Art. 32 (1) LL provides that "the employee working for unlimited period and not subject to the provisions of the Social Security Law, and whose service is terminated for any reason may acquire the end of service remuneration in a rate of a month wage for each year of his/her actual service, for the parts of year, he/she shall be given a proportional remuneration.
The remuneration shall be calculated on the basis of the last wage that he/she has received during the period of his/her employment, while if the complete wage or part of it was calculated on the basis of commission or taskwork, then the remuneration shall be calculated based on the average of the monthly wage received by the employee during the twelve months preceding the end of his/her service.
If the period of his/her service has not reached that extent, then the monthly average of the total of his/her service period shall be considered, the intermissions not exceeding 60 days (New in 2010: previously 1 month) between one work and another shall be considered as uninterrupted employment period when calculating the remuneration. See: art. 35 LL, as amended by sec. 11 of the Interim Act No. 26 of 2010.
Arab States 0.5 0.75 1 2 4 5 10 20
2019 Kazakhstan Kazakhstan Article 131 of the Labour Code

The severance pay is the average monthly wage. Article 131.3 notes the possibility of a higher severance pay provided in collective agreement.
Europe 1 1 1 1 1 1 1 1
2019 Korea, Republic of Korea, Republic of Asia 0 0 0 0 0 0 0 0
2019 Lesotho Lesotho Art. 79 LC:
- A worker is entitled to severance pay provided he has not been dismissed for misconduct and has completed more than one year of service.
- Severance pay shall amount to 2 weeks' wages for each year of service. However, "it shall not exceed a sum which may be prescribed by the Minister from time to time after consultation with the Wages Board". No information was found on this maximum amount.

However, the 1997 Labour Code Amendment Act provides for exemptions from statutory severance pay where the employer has demonstrated to the Labour Commissioner in writing that it offers a more advantageous separation benefit scheme.
Africa 0 0 0.5 1 2 2.5 5 10
2019 Luxembourg Luxembourg Art. L 124-7 LC: except in case of serious misconduct, a dismissed employee (under a contract of indeterminate duration) is entitled to severance pay ("indemnité de départ") provided he or she have been continuously employed for at least five years with the same employer and is not eligible to an old-age pension.
Statutory severance pay is determined according to the length of service and should not be less than:
* 1 month's wages for at least 5 years of continuous service;
* 2 month's wages for at least 10 years of continuous service;
* 3 month's wages for at least 15 years of continuous service;
* 6 month's wages for at least 20 years of continuous service;
* 9 month's wages for at least 25 years of continuous service;
* 12 month's wages for at least 30 years of continuous service.

Art. 124-7 (2) LC provides that employers employing less than 20 employees may opt in the dismissal letter either for the payment of the severance pay referred to in paragraph (1) above or for the extension of the notice periods as established in detail by Art. 124-7 (2) LC.
_______________________
Art. 124-7 du Code du travail:
(1) (...) L’indemnité de départ visée à l’alinéa 1 ne peut être inférieure à:
– un mois de salaire après une ancienneté de service continus de cinq années au moins;
– deux mois de salaire après une ancienneté de service continus de dix années au moins;
– trois mois de salaire après une ancienneté de service continus de quinze années au moins;
– six mois de salaire après une ancienneté de service continus de vingt années au moins;
– neuf mois de salaire après une ancienneté de service continus de vingt-cinq années au moins;
– douze mois de salaire après une ancienneté de service continus de trente années au moins.

(2) L’employeur occupant moins de vingt salariés peut opter dans la lettre de licenciement soit pour le versement des indemnités visées au paragraphe (1) qui précède, soit pour la prolongation des délais de préavis visés à l’article L. 124-3 qui, dans ce cas, sont portés:
– à cinq mois pour le salarié justifiant auprès du même employeur d’une ancienneté de service continus de cinq années au moins;
– à huit mois pour le salarié justifiant auprès du même employeur d’une ancienneté de service continus de dix années au moins;
– à neuf mois pour le salarié justifiant auprès du même employeur d’une ancienneté de service continus de quinze années au moins;
– à douze mois pour le salarié justifiant auprès du même employeur d’une ancienneté de service continus de vingt années au moins;
– à quinze mois pour le salarié justifiant auprès du même employeur d’une ancienneté de service continus de vingt-cinq années au moins;
– à dix-huit mois pour le salarié justifiant auprès du même employeur d’une ancienneté de service continus de trente années au moins.
Europe 0 0 0 0 0 1 2 6
2019 Madagascar Madagascar No general right to severance pay arising from dismissal based on reasons other than economic ones (see redundancy payment). Africa 0 0 0 0 0 0 0 0
2019 Malawi Malawi New in 2011
The Employment Amendment Act of 2010 (effective as of May 2011) limits severance pay entitlements to economic dismissals ("termination of a contract as result of redundancy or retrenchment, or due to economic difficulties, or technical, structural or operational requirements of the employer) or unfair dismissals. Employees who are fairly dismissed (ie for a reason connected with their capacity) are no longer entitled to severance pay.

Africa 0 0 0 0 0 0 0 0
2019 Morocco Morocco Art. 52 LC: An employee bound by an employment contract for an indefinite period is entitled to compensation in the event of dismissal after six months' work in the same company, regardless of the method of remuneration and the frequency of payment of the salary.

Art. 53 LC establishes rules on severance pay as follows:
- Severance pay is due after 6 months of service.
- It corresponds to a number of hours per year that varies according to the length of service:
* 96 hours pay per year for the first 5 years
* 144 hours per year between the 6th and the 10th year
* 192 hours per year between the 11th and the 15th year
* 240 hours after the 15th year.
For the purpose of calculation, the yearly average work duration used here is 2288 hours as set in Art. 184 LC (i.e. 44 hours per week).

To determine the monthly working time: 2288 hours divided by 12, or 191 hours as monthly working time.
On this basis, the calculations are carried out as follows:
- For the first 5-year period (i.e. a total of 480 hours), for each year or part of a year from six months of seniority: 96 : 191 = 0.50 month;
- From the 6th to the 10th year, for each year or part of a year: 144:191 = 0.75 month;
- From the 11th to the 15th year, for each year or part of a year of six months: 192:191 = 1.00 month;
- For each year or part of a year beyond the 15th year: 240:191 = 1.26 month.

An online tool established by the Ministry of Labour to calculate severance pay is available at:
"Simulation / Les indeminités dûes aux salaries en cas de licenciement a l'initiative de l'employeur": http://www.emploi.gov.ma/index.php/fr/component/content/article/8-travail/13-simulation.html
Africa 0.25 0.33 0.5 1 2 2.5 6.25 17.5
2019 Namibia Namibia An employer must pay severance pay to an employee who has completed 12 months of continuous service (sec. 35 LA), if the employee:
- is dismissed ;
* dies while employed; or
* resigns after reaching the age of 65 years.
The amount of severance pay must be equal to at least one week's remuneration for each year of continuous service with the employer (sec. 35 (3)).

However, an employee is not entitled to severance pay (sec. 35 (2)):
- in case of a fair dismissal on grounds of misconduct or poor work performance;
- if the employee unreasonably refuses to be reinstated; or
- if the employee unreasonably refuses to accept employment on no less favourable terms.

Africa 0 0 0.25 0.5 1 1.25 2.5 5
2019 Netherlands Netherlands - An obligatory severance payment, called “transitional remuneration”, is regulated in Art. 7:673 CC
- Employees are eligible for the severance payment, when they have worked for the employer for at least 24 months and have been terminated by the employer, the employment relationship has been terminated on mutual consent at the employer’s initiative, a fixed term employment contract has not been renewed by the employer or when the employee has terminated the employment relationship due to misconduct of the employer.
- The payable amount must be 1/6 of the monthly wage of the employee for each 6-month period, which the employee has worked for the employer, plus ¼ of the monthly wage for each 6-month period worked above 10 years. Though, the severance pay can never be higher than 77,000 EUR, or one annual wage, if the annual wage is higher than 77,000 EUR. In enterprises with more than 25 employees, the severance pay for employees, who are 50 or older and who have worked for the employer for at least 10 years, must be equal to half their monthly wage for each 6 month period they have worked for the employer, Art. 7:673a CC.
- Under special circumstances, based on the principles of fairness and taking into account negligent conduct of either the employer or the employee prior to the termination, the court can decide to increase or lower the severance pay.
- A different entitlement to severance pay can be set by collective agreement (Art. 7:673b CC).
Europe 0 0 0 0.66 1.32 1.65 3.33 8.33
2019 Niger Niger No provision in the LC. However, severance pay is governed by art. 34 of the Inter-occupational Collective Agreement:
A worker is entitled to severance pay provided he has been employed continuously for a period of at least one year and he has not committed any serious misconduct. Severance pay corresponds to a percentage of the monthly overall wages per year of service and is set according to the length of service as follows:
*20% per year during the first 5 years
*30% per year from the 6th to the 10th year
*35% per year after the tenth year.
Africa 0 0 0.2 0.4 0.8 1 2.5 6
2019 Norway Norway There are no statutory provisions on severance or redundancy payment. These can be included in collective agreements.

In addition, redundancy pay may be negotiated by the employer and the workers' representatives during the consultation and information process preceding collective redundancies. Art. 15-2(3)(h) WEA states that the employer must specify in written the criteria for calculation of extraordinary severance pay, if applicable.
Europe 0 0 0 0 0 0 0 0
2019 Peru Peru LLCP does not foresee any severance pay or redundancy payment. The employer can terminate the employment contracts for economic reasons, technological reasons, or structural causes that make the cessation necessary or in the event of force majeure without having to pay compensation.
Dismissal of a worker due to his or her capacity or conduct does not give rise to compensation (art. 34, LLCP)
If the employer dismisses an employee for reasons other than those exhaustively listed in the LPCL, he or she will have to pay compensation for arbitrary dismissal which is calculated according to the length of service (see below - avenues for redress).
Americas 0 0 0 0 0 0 0 0
2019 Russian Federation Russian Federation Article 178 of the Labour Code: the worker is entitled to a two-week salary severance pay in some cases of dismissals. Europe 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5
2019 Rwanda Rwanda •Art. 31 of the 2018 LL repealed Art. 35 of the 2009, LL, which provided “dismissal compensation” or severance pay. Art. 31 in the new LL provides that upon termination of an employment contract as a result of economic reasons, technological transfer or sickness, workers are entitled to severance pay ("terminal benefits") provided that they have completed a period of at least twelve (12) consecutive months of work. The new LL, which repealed the 2009 LL introduced new calculations for minimum entitlements as follows:

Statutory severance pay is payable at the following rates:
- 2 month' salary for less than 5 years of service;
- 3 months' salary for 5 to 10 years of service;
- 4months' salary for 10 to 15 years of service;
- 5 months' salary for 15 to 20 years of service;
- 6 months' salary for 20 to 25 years of service; and
- 7 months' salary for more than 25 years of service.
Africa 0 0 2 2 2 3 4 6
2019 Senegal Senegal No provision in the LC. However, severance pay is governed by art. 30 of the Inter-occupational Collective Agreement:
A worker is entitled to severance pay provided he has been employed continuously for a period of at least one year and he has not committed any serious misconduct. Severance pay corresponds to a percentage of the monthly overall wages per year of service and is set according to the length of service as follows:
*25% per year during the first 5 years
*30% per year during the subsequent 5 years
*40% per year after the tenth year.
Africa 0 0 0.25 0.5 1 1.25 2.75 6.75
2019 South Africa South Africa There is no general right to severance pay following a fair dismissal. Severance pay is required by the BCEA (sec. 41) and the LRA (sec 196) only where the termination is for operational requirements of the enterprise, meaning requirements based on the economic, technological, structural or similar needs of an employer [covered below under "redundancy pay"] Africa 0 0 0 0 0 0 0 0
2019 Spain Spain - In the event of dismissal for an objective reason (i.e economic reasons, worker's capacity - see valid grounds), at the time the written notice of dismissal is delivered to the worker, severance pay shall be simultaneously made available to the worker. Severance pay amounts to 20 days' wages per year of service with a maximum of 12 months' wages (art. 53(1) ET).
- A worker who is dismissed for disciplinary reasons is not entitled to severance pay.

Before 2012, if the employer acknowledged that the disciplinary dismissal was unfair, the employment contract would be deemed terminated at the date of dismissal if the employer deposits in advance to the Labour Court at the disposal of the employee the statutory compensation for unfair dismissal which amounts to 45 days' wages for each year of service up to a maximum of 42 months' wages (former art. 56(2) ET). This provision was repealed by Royal Decree Law 3/2012. Now, when a dismissal is declared unfair by the Court, the statutory compensation amounts to 33 days’ wages for each year of service up to a maximum of 24 months’ wages (current art. 56(1) ET).

- According to art. 49(1)c) ET, upon termination of a fixed term contract by expiry of the term or completion of the work, the worker is entitled to a severance payment.
This does not, however, apply to termination of a contract concluded for training purposes or to replace employees temporarily absent from work (art. 49(1)c) ET).

As a result of Royal Decree Law 16/2010, the amount of fixed-term contract termination indemnity, which was previously 8 days for each of service, is now 12 days per year of service (art. 49(1)c) ET).
Europe 0.33 0.5 0.67 1.33 2.67 3.33 6.67 12
2019 Switzerland Switzerland No general statutory severance pay or redundancy payment scheme. However, upon termination of the contract by either parties, a worker is at least 50 years old and has 20 or more or more years of service with the same employer is entitled to a long service payment ("indemnité à raison de longs rapports de travail")(art. 339c CO).
As a minimum, this payment should amount to 2 months wages and shall not exceed 8 months: art. 339c (1) &(2) CO. However, it may be reduced in part or cancelled if the employee terminates his contract without proper justification, if the employer summarily dismiss him for valid reasons or of if the payment of this amount would result in difficulties for the employer (art. 339c (3) CO).
Europe 0 0 0 0 0 0 0 0
2019 Tanzania, United Republic of Tanzania, United Republic of Severance pay is defined in the ELRA as an amount equal to seven days basic wage for each completed year of continuous service with that employer up to a maximum of ten years. (art. 42(1) ELRA)
An employer is required to pay severance on termination of employment if the employee has completed 12 months of continuous service with an employer and the employer terminates the employment (art. 42(2) ELRA).
Severance is not required to be paid:
* if the termination is fair on grounds of misconduct, or
* to an employee who is terminated on grounds of capacity, compatibility or operational requirements who unreasonably refuses to accept alternative employment with that employer or any other employer (art. 42(3) ELRA).
Africa 0 0 0.25 0.5 1 1.25 2.5 2.5
2019 Thailand Thailand Asia 1 1 3 3 6 6 10 13.33
2019 Tunisia Tunisia Except for serious misconduct, every employee bound by a contract of employment for an indefinite term and dismissed after the expiration of the probationary period is entitled to receive a severance allowance, calculated on the basis of one day's salary (which is paid at the moment of the dismissal) for each month of effective service in the same enterprise (art. 22 LC).
Severance pay cannot exceed three months' salary, whatever the duration of effective service has been. However, collective agreements can raise the amount of compensation.
____________________
L'article 22 du Code du travail dispose que "Tout travailleur lié par un contrat à durée indéterminée, licencié après l'expiration de la période d'essai, bénéficie, sauf le cas de faute grave, d'une gratification de fin de service calculée à raison d'un jour de salaire par mois de service effectif dans la même entreprise, sur la base du salaire perçu par le travailleur au moment du licenciement compte tenu de tous les avantages n'ayant pas le caractère de remboursement de frais.
Cette gratification ne peut excéder le salaire de trois mois quelle que soit la durée du service effectif, sauf dispositions plus favorables prévues par la loi ou par les conventions collectives ou particulières."
Africa 0.2 0.3 0.4 0.8 1.6 2 3 3
2019 Turkey Turkey The Labour Act of 2003 No. 4857 did not establish new rules on severance pay, except that transitional Article 6 foresees the creation of a Severance pay fund. This article also provides that Article 14 of the repealed Labour Act No 1475 will remain in force and the employees' entitlements to severance pay shall be protected until a new law is enacted. However, no law on the creation of a Severance pay fund has since been enacted.

Under Art. 14 LA No. 1475, in the event of termination by the employer of the contract of employment of an employee with at least one year of service for reasons other than for malicious, immoral or dishonourable conduct or other similar behaviour; the employer must pay seniority severance pay equal to 30 days' wages for each complete year of service or in proportion for any fraction thereof, effective from the date of employment and for the entire duration of the contract.

This means that an employee is entitled to severance pay if the employer terminates the employment contract with notice of both employees covered by and excluded from the job security provisions (Art. 17 LA), or without notice on account of the employee's health (Art. 25/I LA) or for force majeure.

Severance pay is also due in the following circumstances:
- if the event the contract is terminated by either party on account of compulsory military service; or for the purpose of qualifying for an old-age or disability insurance pension or a lump-sum payment from the legally established social security fund; or voluntary termination of the contract by a woman employee within one year from the date of her marriage
- if the employee immediately terminate the contract for a just cause (for reasons of health, immoral or dishonourable conduct by the employer and force majeure).
Europe 0 0 1 2 4 5 10 20
2019 Turkmenistan Turkmenistan Europe 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5
2019 Uganda Uganda Africa 0 0 0 0 0 0 0 0
2019 Uzbekistan Uzbekistan Art. 109 LC states that the severance pay will be paid upon termination of the employment contract by the employer and it may not be less than the average monthly salary. Europe 0 0 0 0 0 0 0 0
2019 Venezuela, Bolivarian Republic of Venezuela, Bolivarian Republic of Art. 92 OLL: In case of termination of the working relationship for reasons not connected with the will of the employee, or in case of unjust dismissal, when the employee expresses its will to not be reinstated, the employer will have to pay a compensation amounting to social benefits

Article 142 OLL: Social benefits will be protected, calculated and payed as follows:
a) The employer will guarantee the social benefits by depositing the equivalent to fifteen days each trimester, calculated on the basis of the las accrued income. The employee has the right over this bond since the start of the trimester.
b) Additionally, and after the first year of service, the employer will deposit two days of salary to each worker each year, cumulative up until 30 days of salary.
c) In case of termination of the working relationship, whatever the cause is, benefits will be calculated on the basis of 30 days per year of work or fraction over six months calculated by reference to the last salary.
d) The worker will receive the benefits that are more favourable between the bond established in subsections a and b, and the end of employment benefits in accordance with subsection c.
e) If a working relationship finishes in the three first months, the worker will receive 5 days of salary per months of work or fraction.
f) The payment of social benefits must be done in the five days following the end of the working relationship, otherwise the payment will generate default delay interests in accordance with the active tax determined by the Central Bank of Venezuela, taking as a reference the six first banks of the State.
__________________
In Spanish:
Artículo 92. "En caso de terminación de la relación de trabajo por causas ajenas a la voluntad del trabajador o trabajadora, o en los casos de despido sin razones que lo justifiquen cuando el trabajador o la trabajadora manifestaran su voluntad de no interponer el procedimiento para solicitar el reenganche, el patrono o patrona deber;; pagarle una indemnización equivalente al monto que le corresponde por las prestaciones sociales."

Artículo 142. Las prestaciones sodales se protegerán, calcularán y pagarán de la siguiente manera:
a) El patrono o patrona depositará a cada trabajador o trabajadora por concepto de garantía de las prestaciones sociales el equivalente a quince días cada trimestre, calculado con base al último salario devengado. El derecho a este depósito se adquiere desde el momento de iniciar el trimestre.
b) Adicionalmente y después del primer año de servicio, el patrono o patrona depositara a cada trabajador o trabajadora dos días de salario, ¡;¡or cada año, acumulativos hasta treinta días de salario.
e) Cuando la relación de trabajo termine por cualquier causa se calcularán las prestaciones sociales con base a treinta días por cada año de servicio o fracción superior a los seis meses calculada al último salario.
d) El trabajador o trabajadora recibirá por concepto de prestaciones sociales el monto que resulte mayor entre el total de la garantía depositada de acuerdo a lo establecido en los literales a y b, y el cálculo efectuado al final de la relación laboral de acuerdo al literal c.
e) Si la relació'1 de trabajo termina antes de los tres primeros meses, el pago que le corresponde al trabajador o trabajadora por concepto de prestaciones sociales será de cinco días de salario por mes trabajado o fracción.
f) El pago de las prestaciones sociales se hará dentro de loscinco días siguientes a la terminación de la relación laboral, y de no cumplirse el pago generará intereses de mora a la tasa activa determinada por el Banco Central de Venezuela, tomando como referencia los seis principales bancos del país.
Americas 1 1 1 2 4 5 10 20
2019 Zambia Zambia •There is no general right to severance pay, as indicated by the Government and reflected in Direct Request of the CEACR, adopted 2016 on the Termination of Employment Convention, 1982 (No 158), available at: http://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:13100:0::NO::P13100_COMMENT_ID,P11110_COUNTRY_ID,P11110_COUNTRY_NAME,P11110_COMMENT_YEAR:3300769,103264,Zambia,2016.

Severance pay is only due if a worker falls within the scope of the Minimum Wages and Conditions of Employment (general) or (Shop workers) Orders and a proper officer determines that the circumstances of the case do not warrant summary dismissal.
-, in the event of termination on medical grounds "as certified by a registered medical practitioner or a medical institution", the employee is entitled to a lump sum of not less that 2 months basic pay for each completed year of service (MWCEGO: sec. 9 and MWCESO: sec. 11 (3)).
Moreover the 2010 Minimum Wage Orders also foresee in their article 12 (General MWCEA) and 11 (Shop Workers) that in case of summary dismissal (where the employer dismisses the employee summarily and without due notice or payment of wages in lieu of notice) and the Labour Commissioner or labour officer determines that the circumstances of the case do not warrant summary dismissal of the employee, the employee so dismissed shall be entitled to payment of severance benefits of no less than two months’ basic pay of each completed year of service.
Africa 0 0 2 4 8 10 20 40
2018 Antigua and Barbuda Antigua and Barbuda No severance pay upon dismissal for reasons other than redundancy (sec. C40 LC) Americas 0 0 0 0 0 0 0 0
2018 Argentina Argentina Americas 0 0 0 0 0 0 0 0
2018 Armenia Armenia Art. 129 LC

Europe 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5
2018 Chile Chile - Upon dismissal without cause (by way of desahucio), the workers are entitled to a statutory severance pay -Indemnización legal por años de servicio - (unless an individual or collective agreement is made with more favourable terms) equivalent to 30 days of the last monthly remuneration earned, for each year of service worked and fraction greater than six months. The upper limit is 330 days for workers with a contract in force for one year or more (sec. 163, LC). This applies to persons occupying positions of trust and persons representing the employer having general administrative competence. However domestic workers are entitled to a different indemnity.
- The same amount is payable to a worker whose contract is terminated on the basis of the requirements of the undertaking (see below redundancy payment)
- Upon termination of employment, regardless of the reason for termination, domestic workers are entitled to an indemnity to be funded by the employer's contributions to an insured pension fund equivalent to 4.11% of the monthly remuneration. The employer's contributions shall be paid for a period of 11 years which shall run from obligation to pay such contribution shall be for a period run from 1 January 1991 or the start date of employment, whichever is later (art. 163 LC).
- There is a possibility for an agreement on a substitute termination indemnity (see below - "Notes / Remarks")

Note that dismissals based on the worker's conduct (art. 160 LC) do not give right to severance pay.
Similarly severance pay is not payable in the event of termination upon expiry of the agreed term of the contract or completion of the service for which the contract was made, termination due to force majeure or unforeseen event, resignation, mutual agreement, resignation or the death of the worker.
Americas 0 0 1 2 4 5 10 11
2018 Japan Japan Asia 0 0 0 0 0 0 0 0
2018 Malaysia Malaysia The Employment (Termination and Lay-off Benefits) Regulations 1980 provides for statutory severance pay in the event of termination, on the following scale (sec. 6 (1)):
- ten days' wages for each completed year of service of less than two years;
- 15 days' wages for each year of two to five years' service;
- 20 days' wages for each year of service exceeding five years.

These Regulations apply to employees with more than one year's service (sec. 3(1)) and do not apply to dismissals for misconduct, after due inquiry (sec. 4).
Asia 0 0 0.33 1 2 3.33 6.67 13.33
2016 Austria Austria Europe 0 0 0 0 2 3 4 9
2012 Canada (Federal only) Canada (Federal only) See sec. 235 CLC:
Upon termination of employment by the employer, except in the event of dismissal for just cause (summary dismissal), an employee who has completed 12 months of continuous employment is entitled to severance pay which shall amount to the greater of:
- two days' wages (at the regular rate for regular hours of work) for each completed year of service; or
- five days' wages (at the regular rate for regular hours of work).
Americas 0 0 0.17 0.17 0.27 0.33 0.67 1.33
2012 Congo Congo Africa 0 0 0 0 0 0 0 0
2012 Cyprus Cyprus Europe 0 0 0 0 0 0 0 0
2012 France France Art. L 1234-9 LC (last amended by Act No 2008-596 of 25 June 2008): right to severance pay after a tenure of at least 1 year without interruption, except in case of serious misconduct.
The calculation modalities are determined by art. R 1234-2 LC:
The statutory minimum is 1/5 of monthly wages per year of service.
For employees with more than 10 years of service, 2/15 of the monthly wages multiplied by the number of years of service beyond 10 years should be added.

Ex:
Tenure of 1 year: 1/5 x 1 = 0.2
Tenure of 20 years: (1/5 x 20) + (2/15 x 10) = 5.33
Europe 0 0 0.2 0.4 0.8 1 2 5.33
2012 Honduras Honduras There is no general right to severance pay for justified dismissals (i.e those based on the conduct or the capacity of the worker, or on economic reasons).
However, in the event of unjustified dismissal (dismissal without cause) and indirect dismissal (termination by the employee caused by actions of the employer listed in art. 114 LC such as serious misconduct, violence, failure to pay the wages...), any employee under a contract of indefinite duration is entitled to compensation (Auxilio de cesantía) which varies according to the employee's length of service, as follows (art. 120 LC):
- the length of service is between 3 and 6 months: 10 days of salary,
- from six months to one year of service: 20 days of salary,
- after one year of continuous services: one month's salary for each year of service, up to a maximum of 25 months' salary.
However, according to article 120A LC, the cap is reduced to 15 months' salary in micro-enterprises, which are defined as enterprises with a maximum of 10 employees.

Note that according to the LC, in enterprises with more than 10 employees,
- after 15 years of service any employee who voluntarily terminates his employment is entitled to 35% of his or her accrued severance.
- after 6 months of continued service in the event of an employee's death, his or her heirs are entitled to 70% of the accrued severance.
Americas 0.67 0.67 1 2 4 5 10 20
2012 Slovenia Slovenia According to art. 109 ERA, any employee dismissed for economic reasons or reasons related to his capacity is entitled to severance pay amounting to:
- 1/5 of the employee's monthly wages in the last three months for each year of employment with the employer, if employed by the same employer for more than one and up to five years;
- 1/4 of the same basis for each year of employment with the employer, if employed by the same employer for the period from five to fifteen years;
- 1/3 of the same basis for each year of employment with the employer, if employed by the same employer for the period exceeding fifteen years.
Unless otherwise stipulated in the collective branch agreement, severance pay cannot exceed 10 month's wages (art. 109 (4) ERA).

Employees who are dismissed for reasons related to their conduct are not entitled to severance pay.
Europe 0 0 0.2 0.4 0.8 1 2.25 5.16
2010 Czech Republic Czech Republic No statutory severance pay except in the event of a dismissal of an employee who is not allowed to perform his work due to an industrial injury or occupational disease (sec. 67(1) LC) Europe 0 0 0 0 0 0 0 0
2010 Iran, Islamic Republic of Iran, Islamic Republic of - Permanent workers:
See sec. 27 LC: Where a worker is negligent in discharging his or her duties or if, after written warnings, he or she continues to violate the disciplinary rules of the workplace, the employer shall have the right to terminate the employment agreement, upon approval of the Islamic Labour Council, and shall pay to the worker a sum equal to his or her last monthly wage for each year of service as a length ­of­ service allowance, in addition to any deferred entitlements.
(No information found in the LC as to the entitlement to severance pay of a permanent worker with less than 1 year of service)

See also:
-Workers under a fixed-term contract:
Sec. 24 LC: In the event of the termination of an employment contract concluded for piece­work or for a fixed term, the employer shall pay to each worker employed under such a contract for one year or more, whether continuously or not, an amount equal to his last monthly wage for each year of service as a length­ of­ service allowance.
Asia 0 0 1 2 4 5 10 20
2014 Portugal Portugal - Severance pay is due in the event of dismissal for unsuitability, elimination of the position and collective dismissal. Disciplinary dismissals do not give rise to severance pay.

Before Law 23/2012 severance payment amounted to 1 month of basic salary for each full year of seniority. Law 23/2012 had reduced this amount to 20 days of basic salary per each full year of seniority and eliminated the minimum 3-month payment.

New in 2013 :
Law 69/2013 of 30 August 2013 reduced this amount to the current 12 days of basic salary for each full year of seniority. Transitory measures have been put in place for contracts of employment already in force In case of fraction of years of seniority, compensation is prorated (art. 366, 372, 379 LC)
Europe 0 0 0.4 0.8 1.6 2 4 8
2015 Tajikistan Tajikistan Art. 55 LC provides for a severance pay upon the termination of a labour contract, except in cases of the termination on the grounds provided by in paragraphs 3, 4, 6, 7, 10, 11 and 1 of Art. 46 LC.
The amount of the severance pay is determined by multiplying one-fourth of the average monthly wage for the number of full years in the organization and can not be lower than the average monthly salary of the employee.
Europe 1 1 1 1.25 2.5 5
2015 Viet Nam Viet Nam Art. 42 (1) LC and 14 Decree 2003.
Severance pay is reserved for cases where the employer has followed an illegal unilateral termination of employment contract and the employee does not wish to be reinstated (Article 42 LC) and terminations in compliance with provisions in Clause 1, 2, 3, 5, 6, 7, 9 and 10, Article 36 of this Code (Article 48 LC).

Article 48 (1) LC: (1)[…] the employer is responsible for paying severance allowance to the employee who has worked regularly for a period of at least full 12 months. A half of the monthly wage is payable for each year of work.
For more detailed rules on calculating the worked period, see 48 (2) and (3).
Asia 0 0 0.5 1 2 2.5 5 10

Amount of redundancy pay (in months) per length of tenure

YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
Year(s) Country Country Remark Region TEXT_TENURE_OF 6MONTHS TEXT_TENURE_OF 9MONTHS TEXT_TENURE_OF 1 year TEXT_TENURE_OF 2YEARS TEXT_TENURE_OF 4YEARS TEXT_TENURE_OF 5YEARS TEXT_TENURE_OF 10YEARS TEXT_TENURE_OF 20YEARS
2013 Afghanistan Afghanistan See remarks under severance pay.
Art. 25(3) LC provides for termination payment upon termination for economic reasons, namely
- cessation of activities for more than 6 months,
- dissolution of the employer's business or downsizing.
The amounts to be paid vary according to the length of service, as follow:
- if the length of service is 1 year: one month' salary [not clear whether this applies to 6 and 9 months, this need to be checked upon proper translation of the original text];
- from 1 up to 5 years of service: 2 months' salary;
- from 5 up to 10 years of service: 4 months' salary;
- more than 10 years of service: 6 months' salary
Asia 1 1 2 2 2 4 6 6
2013 Ethiopia Ethiopia Art. 40 (3) LP: Severance pay + specific additional payment of 60 days' wages (2 months) in case of a collective dismissal on economic grounds ("reduction of workers") or closing down of the undertaking. Africa 2.5 2.75 3 3.33 4 4.33 6 9.33
2013 Ghana Ghana Africa 0 0 0 0 0 0 0 0
2013 Nigeria Nigeria No statutory redundancy pay.
Sec. 20 LA provides that in the event of redundancy:
"(1)(c) the employer shall use his best endeavours to negotiate redundancy payments to any discharged workers who are not protected by regulations made under subsection (2) of this section;
(2) The Minister may make regulations providing, generally or in particular cases, for the compulsory payment of redundancy allowances on the termination of a worker's employment because of his redundancy".
No such regulations have been adopted so far.
Africa 0 0 0 0 0 0 0 0
2013 Philippines Philippines 1) If the termination is due to the installation of labour-saving devices or redundancy, the separation pay is one month¿s pay for every year of service or one month pay, whichever is higher.
2) If the termination is due to retrenchment to prevent losses, or closure or cessation of operation of the establishment not due to serious business losses, the separation pay is one-half month¿s pay for every year of service or one month pay, whichever is higher.
Asia 1 1 1 2 4 5 10 20
2013 Sri Lanka Sri Lanka No specific redundancy payment. Severance pay is payable in the event of any termination including for economic reasons. See sec. 5(1) and 6 PGA.
Asia 0 0 0 0 0 2.5 5 10
2013 Syrian Arab Republic Syrian Arab Republic No general right to redundancy payment.
However, in the event of partial shutdown of the firm (see above under "collective dismissals"), in specific circumstances as provided in art. 228, workers may be entitled to severance pay.
Article 228 LL: "Employers may, after issuance of the decision ordering partial shutdown of the firm, amend the terms of individual employment contracts. In particular, they may assign workers to jobs that substantially differ from their initial work, and decrease workers' wage to no less than the minimum wage prescribed for their occupation. In this case, workers may either agree to such measure or request termination of their employment contract, notwithstanding the statutory notice period. In this case, workers shall be entitled to compensation at the rate of one month for each year of service, provided such compensation does not exceed six months wages."
Arab States 0 0 1 2 4 5 6 6
2013 United Arab Emirates United Arab Emirates No specific redundancy pay. Severance pay covers dismissals for economic reasons. Arab States 0 0 0.7 1.4 2.8 3.5 8.5 18.5
2013 Yemen Yemen No specific redundancy payment. However, redundancy cases are covered by the general provision on severance pay (art. 120(2) LC). Arab States 0.5 0.75 1 2 4 5 10 20
2017 Albania Albania Europe 0 0 0 0 2 2.5 5 10
2017 Angola Angola -Arts. 236 GLA: In case of dismissal for reasons relating to the employer (= economic, technological and structural reasons), the worker is entitled to a redundancy payment calculated as follows:
oBig companies: one month's base salary for each year of service, within the limit of 5 years, this sum being complemented by 50% of the same monthly salary for each year of service exceeding 5 years of service.
oMedium companies: one month’s base salary for each year of service, within the limit of 3 years, this sum being complemented by 50% of the same monthly salary for each year of service exceeding 3 years of service.
oSmall companies: two month’s base salaries, this sum being complemented by the 30% of the same monthly wage for each year of service exceeding two years.
oMicro companies: two month’s base salaries, this sum being complemented by the 20% of the base salary for each year of service exceeding two years.
Both workers dismissed by way of collective dismissal and workers dismissed by way of individual economic dismissal are entitled to the above-mentioned redundancy. Payment.
Africa 0 0 1 2 4 5 7.5 12.5
2017 Bangladesh Bangladesh Sec. 20(2): In the event of retrenchment, any worker with at least one year of continuous service with an employer shall be entitlement to a payment of at least 30 days' wages for each completed year of service (or for any part thereof in excess of six months: see sec. 2(x) LA on the definition of gratuity) Asia 0 1 1 2 4 5 10 20
2017 Bolivia Bolivia Article 14 of the Labour Code provides that in case of cease of activities due to bankruptcy or verified losses ("peridas comprobadas"), the compensation shallbe half of the the usual amount, and workers credits shall be given priority. Americas 0.12 0.25 0.5 1 2 2.5 5 10
2017 Cambodia Cambodia No specific redundancy payment: same severance pay.
See Article 89 LC: If the worker is dismissed for a reason other than serious misconduct, the employer must pay an indemnity for dismissal. The amount of the indemnity depends upon the employee's length of continuous service:
- for employment from 6 to 12 months: 7 days wages and benefits;
- for employment over 1 year: 15 days wages and benefits for each year of employment, up to a maximum of six months' wages.
This only applies to contracts of an unspecified duration.

Note that art. 73 LC provides that: at the expiration of a fixed-term contract (the end of the term or completion of the task), the employer must pay the employee severance pay which may be fixed by collective agreement but should not in any case be less than 5 per cent of the total wages paid during the length of the contract.
Asia 0.23 0.23 0.5 1 2 2.5 5 6
2017 China China Same as severance pay: see art. 46 (4) ECL read together with art. 47 ECL. Asia 1 1 1 2 4 5 10 20
2017 Denmark Denmark * White-collar workers:
Economic dismissals are covered by severance pay. There is no specific statutory redundancy payment for collective dismissal.
Sec. 2a ESEA: In case of dismissal of a salaried employee having worked continuously in the same enterprise for 12 or 17 years, the employer shall pay a sum corresponding to, respectively, 1 or 3 months' salary.

* Blue-collar workers: no statutory redundancy payment.
Europe 0 0 0 0 0 0 1 3
2017 Egypt Egypt Africa 1 1 1 2 4 5 12.5 27.5
2017 Estonia Estonia Art. 100 ECA: upon termination of employment due to a lay-off, the employee is entitled to one month's wages. Europe 1 1 1 1 1 1 1 1
2017 Georgia Georgia No specific redundancy payment - See severance pay. Europe 1 1 1 1 1 1 1 1
2017 Germany Germany Sec. 1a PADA: an employee dismissed on the basis of urgent operational requirements is entitled to severance pay, the amount of which equal 0.5 months' pay for each year of employment, provided he has not challenged the dismissal within 3 weeks following the notice of termination.

(According to sec. 1a (2) PADA, for the purpose of calculating the length of service in relation to severance pay, a period of more than 6 months should be counted as 1 year.
Europe 0.5 0.5 0.5 1 2 2.5 5 10
2017 Italy Italy Europe 0 0 0 0 0 0 0 0
2017 Macedonia, The Former Yugoslav Republic of Macedonia, The Former Yugoslav Republic of See art. 97 LRA: in the case of termination of the employment contract for business reasons the employer is obliged to pay the employee redundancy payments, as follows:
1) for up to five years of employment: the amount of one net salary;
2) for five to ten years of employment: the amount of two net salaries;
3) for ten to 15 years of employment: three net salaries;
4) 15 to 20 years of employment: four net salaries;
5) from 20 to 25 years of employment: five net salaries;
6) over 25 years of employment: six net salaries.

The basis for calculation of severance pay is the employees' average net salary in the past six months prior to the termination of employment, but it may not be lower than 50 per cent of the average salary paid in Macedonia within the last month before the dismissal.
Europe 1 1 1 1 1 2 3 5
2017 Moldova, Republic of Moldova, Republic of Europe 1 1 1 1 2 2.5 5 10
2017 Mongolia Mongolia See severance pay (art. 42 LC). Severance pay of 1 month's average salary is payable in the event of termination for economic reasons (the employer's business entity or organisation, or a branch or unit has been dissolved, or the job or position within it has been discontinued, or the number of employees has been reduced).
Art. 42.2 LC also provides that in the event of termination of a large number of employees, additional compensation to be paid by an employer to the employees shall be agreed to by the employer and the employees' representatives.
Asia 1 1 1 1 1 1 1 1
2017 Montenegro Montenegro Art. 94 LL provides for the right to redundancy pay of an employee who is made redundant and is not granted any of the rights included in art. 93(2)5) (employment measures such as transfer, retraining for another position....)
- This payment shall amount to at least 6 months' average wages in Montenegro.
- Higher amounts shall be given to employees with disabilities, as follows:
* at least 24 average monthly wages, if the disability resulted from injury not related to work or from illness;
* at least 36 average monthly wages, if the disability resulted from an work injury or a professional disease.
Europe 3 3 3 3 3 3 3.33 6.67
2017 Romania Romania No statutory redundancy pay in the Labour Code.
Generally, the law does not include special rules on severance payments in the case of collective redundancies. An exception is the Government Emergency Ordinance no. 36/2013, which provides for the right to severance payments in certain state-owned units.
Severance payments are owed by the employer if there are provisions to this effect in the applicable collective agreement. (source CEELEX)

Europe 0 0 0 0 0 0 0 0
2017 Saint Lucia Saint Lucia Section 160 Labour Act: (1) On termination of employment due to redundancy an employee who has completed no less than two years of continuous employment with his or her employer is entitled to be paid by the employer redundancy pay equivalent to -
(a) one week’s basic pay for each completed year of service up to the first three years;
(b) two weeks’ basic pay for each completed year of service in excess of three years and up to seven years; or
(c) three weeks’ basic pay for each completed year of service in excess of seven years of service.
Americas 0 0 0 0.5 1.25 1.75 5 12.5
2017 Saudi Arabia Saudi Arabia No specific redundancy payment. However, the Labour Law provides in art. 84 for an end-of-service award that shall be due at the end of the work relation, no matter the reason of termination of employment (retirement, end of the fixed-term contract, "force majeure", resignation). Such award shall amount to half-month wages for each of the first five years of service and one-month wages for the following years. It is however reduced in case of resignation. Arab States 0.25 0.33 0.5 1 2 2.5 7.5 17.5
2017 Serbia Serbia Art. 158 LL established a minimum statutory payment to be paid prior to terminating an employment contract on the grounds that "due to technological, economic or organizational changes a particular job becomes redundant or volume of work be reduced".
The amount of redundancy payment is to be set out in the contract but shall not be less than the sum of 1/3 of the monthly salary for each full year of service for the first ten years and 1/4 of the salary for each full year of service after 10 years of employment.
Europe 0 0 0.33 0.66 1.33 1.66 3.3 5.83
2017 Sweden Sweden Europe 0 0 0 0 0 0 0 0
2017 United States United States Americas 0 0 0 0 0 0 0 0
2019 Algeria Algeria Redundancy pay is regulated by the Legislative Decree No 94-09.
Art. 22 of the Decree provides that in the case of a dismissal resulting from a workforce reduction, the employer has to pay to any worker who is entited to the social security regime of unemployment, an amount equivalent to 3 months' wages.
_______________________
L'indemnité de licenciement est régie par le Décret No.94-09. L'article 22 du Décret prévoit que "le salarié ayant fait l'objet d'un licenciement dans le cadre d'une compression d'effectif et qui bénéficie d'une admission au régime d'assurance chômage ouvre droit à une indemnité égale à trois (03) mois de salaire à la charge de l'employeur. Elle est versée au moment du licenciement."
Africa 3 3 3 3 3 3 3 3
2019 Australia Australia s119 (1) FWA provides that "an employee is to be paid redundancy pay by the employer if the employee's employment is terminated:
(a) at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or
(b) because of the insolvency or bankruptcy of the employer."

The amount of the redundancy pay varies according to the employee's period of continuous service as follows:

- if the employee has at least 1 year but less than 2 years of continuous service: redundancy pay is 4 weeks;
- if the employee has at least 2 years but less than 3 years of continuous service: redundancy pay is 6 weeks;
- if the employee has at least 3 years but less than 4 years of continuous service: redundancy pay is 7 weeks;
- if the employee has at least 4 years but less than 5 years of continuous service: redundancy pay is 8 weeks;
- if the employee has at least 5 years but less than 6 years of continuous service: redundancy pay is 10 weeks;
- if the employee has at least 6 years but less than 7 years of continuous service: redundancy pay is 11 weeks;
-if the employee has at least 7 years but less than 8 years of continuous service: redundancy pay is 13 weeks;
- if the employee has at least 8 years but less than 9 years of continuous service: redundancy pay is 14 weeks;
- if the employee has at least 9 years but less than 10 years of continuous service: redundancy pay is 16 weeks;
- if the employee has at least 10 years of continuous service: redundancy pay is 12 weeks.

Therefore, the maximum statutory redundancy pay is 16 weeks' pay for someone with between 9 and 10 years' service with one employer.

Employees with less than 12 months of continuous service are not entitled to redundancy pay (s121(1)a) FWA).

The obligation to pay redundancy does not apply to small business employers (employers with less than 15 employees).
In addition, s123 FWA excludes from redundancy pay the following employees:
- Exclusion from the division 11 FWA (both notice of termination and redundancy pay):
"(1)(a) an employee employed for a specified period of time, for a specified task, or for the duration of a specified season;
(b) an employee whose employment is terminated because of serious misconduct;
(c) a casual employee;
(d) an employee (other than an apprentice) to whom a training arrangement applies and whose employment is for a specified period of time or is, for any reason, limited to the duration of the training arrangement;
(e) an employee prescribed by the regulations as an employee to whom this Division does not apply.
(2) Paragraph (1)(a) does not prevent this Division from applying to an employee if a substantial reason for employing the employee as described in that paragraph was to avoid the application of this Division"

-"Other employees not covered by redundancy pay provisions
(3)(a) an employee who is an apprentice; or
(b) an employee to whom an industry-specific redundancy scheme in a modern award applies; or
(c) an employee to whom a redundancy scheme in an enterprise agreement applies if:
(i) the scheme is an industry-specific redundancy scheme that is incorporated by reference (and as in force from time to time) into the enterprise agreement from a modern award that is in operation; and
(ii) the employee is covered by the industry-specific redundancy scheme in the modern award; or
(d) an employee prescribed by the regulations as an employee to whom that Subdivision does not apply"
Asia 0 0 1 1.5 2 2.5 3 3
2019 Azerbaijan Azerbaijan Art. 77(3) dictates that workers dismissed for the reasons of an enterprise liquidation (Art. 70 a) or staff cut (Art 70 b) should be reimbursed:
1 year of experience – an average monthly wage
1- 5 years of experience - at least 1.4 of the average monthly wage
5-10 years of experience – at least 1.7 of the average monthly wage
More than 10 years of experience – at least 2 of the average monthly wage

According to Art. 77 (7) LC, the dismissal on the grounds of changing labour conditions (Art. 68 c), call for a military or alternative service (Art. 74 a) and employee’s inability to perform labour functions due to incapability to work continuously for more than six months, the employer pays at least two months of the average monthly wage.

Upon employers initiative (in accordance with the 12th Chapter of the LC dictating the procedure on the termination of labour contracts), the employee is not entitled to a severance payment if dismissed under Article 70 (c,d,e,f). The workers, however, have a right to appeal the decision to the Court.
Europe 0 0 1 1.4 1.4 1.4 2 2
2019 Belgium Belgium Europe 0 0 0 0 0 0 0 0
2019 Brazil Brazil Americas 0 0 0 0 0 0 0 0
2019 Bulgaria Bulgaria Not more than 1 month's salary following any individual or collective dismissal on economic grounds. [Art. 222 (1) LC] Europe 1 1 1 1 1 1 1 1
2019 Burkina Faso Burkina Faso Same as severance pay: dismissals for economic reasons are covered by the Inter-occupational Collective Agreement.
Africa 0 0 0.25 0.5 1 1.25 2.75 6.75
2019 Cameroon Cameroon No specific redundancy payment: severance pay covers dismissals for economic reasons. (Art. 1 and 2 of the Order N° 016 of 26 May 1993) Africa 0 0 0 0.4 0.8 1 2.25 5.5
2019 Central African Republic Central African Republic Africa 0 0 0 0 0 0 0 0
2019 Comoros Comoros Article 50 of the Labour Code: severance pay for all types of dismissals is to be defined by decree after consultation of the Supreme Labour Council to take into account, namely, worker's tenure and professional categories.
Africa 0 0 0 0 0 0 0 0
2019 Congo, Democratic Republic Congo, Democratic Republic Africa 0 0 0 0 0 0 0 0
2019 Côte d'Ivoire Côte d'Ivoire No specific redundancy payment: severance pay covers dismissals for economic reasons. Africa 0 0 0.3 0.6 1.2 1.5 3.25 7.25
2019 Finland Finland Europe 0 0 0 0 0 0 0 0
2019 Gabon Gabon See Art. 70 and 73 LC.
Severance pay covers economic dismissals. The only difference lies in the years of service required to be entitled to severance pay
If a worker is dismissed for economic reasons, he or she will receive severance pay provided he has been employed for at least 1 year and he has not committed any serious misconduct. [2 years of service is required for dismissals based on other reasons]. Severance pay corresponds, as a minimum, to 20 % of the monthly overall wages per year of service.
Africa 0 0 0.2 0.4 0.8 1 2 4
2019 Greece Greece See remarks under severance pay. Europe 0 0 0 1 1 1.5 2.5 6
2019 Hungary Hungary •No specific redundancy payment. Severance pay covers any dismissal for economic reasons (sec. 77 LC). Europe 0 0 0 0 1 2 3 5
2019 India India Sec. 25F IDA provides that in case of retrenchment employees with one or more than one year of service shall be given compensation equivalent to fifteen days' average pay for every completed year of continuous service, " or any part thereof in excess of six months" Asia 0.5 1 2 2.5 5 10
2019 Indonesia Indonesia Articles 163 - 164 and 165 MA

Article 163 MA
(1) The entrepreneur may terminate the employment of his or her workers/ labourers in the event of change in [the] status [of the enterprise], merger, fusion, or change in the ownership of the enterprise and the workers/ labourers are not willing to continue their employment. If this happens, the worker/ labourer shall be entitled to severance pay 1 (one) time the amount of severance pay stipulated under subsection (2) of Article 156, reward pay for period of employment 1 (one) time the amount stipulated under subsection (3) of Article 156, and compensation pay for entitlements that have not been used according to what is stipulated under subsection (4) of Article 156.
(2) The entrepreneur may terminate the employment of his or her workers/ labourers in the event of change in [the] status [of the enterprise], merger, fusion, or change in the ownership of the enterprise and the entrepreneur is not willing to accept the workers/ labourers to work in the [new] enterprise [resulting from the change of status, merger, fusion, or ownership change]. If this happens, the worker/ labourer shall be entitled to severance pay twice the amount of severance pay stipulated under subsection (2) of Article 156, reward pay for period of employment 1 (one) time the amount stipulated under subsection (3) of Article 156, and compensation pay for entitlements that have not been used
according to what is stipulated under subsection (4) of Article 156.

Article 164 MA
(1) The entrepreneur may terminate the employment of his or her workers/ labourers because the enterprise has to be closed down due to continual losses it suffers for two years consecutively or force majeure. If this happens, the workers/ labourers shall be entitled to severance pay amounting to 1 (one) time the amount of severance pay stipulated under subsection (2) of Article 156, reward pay for period of employment amounting to 1 (one) time the amount stipulated under subsection (3) of Article 156 and compensation pay for entitlements that have not been used according to what is stipulated under subsection (4) of Article 156.
(2) The continual losses as referred under subsection (1) must be provable in the enterprise’s financial reports over the last 2 (two) years that have been audited by public accountants.
(3) The entrepreneur may terminate the employment of his or her workers/ labourers because the enterprise has to be closed down and the closing down of the enterprise is caused neither by continual losses for 2 (two) years consecutively nor force majeure but because of rationalization [literal: efficiency]. If this happens, the workers/ labourers shall be entitled to severance pay twice
the amount of severance pay stipulated under subsection (2) of Article 156, reward for period of employment pay amounting to 1 (one) time the amount stipulated under subsection (3) of Article
156 and compensation pay for entitlements that have not been used according to what is stipulated under subsection (4) of Article 156.

Article 165 MA
The entrepreneur may terminate the employment of the enterprise’s workers/ labourers because the enterprise goes bankrupt. If this happens, the workers/ labourers shall be entitled to severance pay amounting to 1 (one) time the amount of severance pay stipulated under subsection (2) of Article 156, reward pay for period of employment amounting to 1 (one) time the amount stipulated under subsection (3) of Article 156 and compensation pay for entitlements that have not been used according to what is stipulated under subsection (4) of Article 156.
Asia 2 2 4 6 10 12 18 18
2019 Jordan Jordan No specific redundancy payment, but the "end of service remuneration" covers termination for any reason, therefore including economic reasons.
(see art. 32 LL)

Arab States 0.5 0.75 1 2 4 5 10 20
2019 Kazakhstan Kazakhstan Article 131 of the Labour Code

Article 131.1 LC states that in case of liquidation, reduction of staff – pay is the average wage for one month.

However, Article 131.2 LC states that in case of decrease in the volume of production, performed work and services provided by the enterprise, the pay is the average wage for two months.
Europe 1 1 1 1 1 1 1 1
2019 Korea, Republic of Korea, Republic of Asia 0 0 0 0 0 0 0 0
2019 Lesotho Lesotho No specific redundancy payment. Same as severance pay.
Art. 79 LC:
- A worker is entitled to severance pay provided he has not been dismissed for misconduct and has completed more than one year of service.
- Severance pay shall amount to 2 weeks' wages for each year of service.

However, the 1997 Labour Code Amendment Act provides for exemptions from statutory severance pay where the employer has demonstrated to the Labour Commissioner in writing that it offers a more advantageous separation benefit scheme.
Africa 0 0 0.5 1 2 2.5 5 10
2019 Luxembourg Luxembourg No specific redundancy payment. Severance pay covers any dismissal (except for serious misconduct): Art. L 124-7 LC. Europe 0 0 0 0 0 1 2 6
2019 Madagascar Madagascar Art. 28 LC: Any worker dismissed for economic reasons shall be entitled to redundancy payment which shall amount to 10 days' wages for each year of completed service up to a maximum of 6 months' wages in total. Africa 0 0 0.33 0.67 2.67 3.33 6 6
2019 Malawi Malawi New in 2011
The Employment Amendment Act of 2010 (effective as of May 2011) limited severance pay entitlements to economic dismissals ("termination of a contract as result of redundancy or retrenchment, or due to economic difficulties, or technical, structural or operational requirements of the employer) or unfair dismissals.

The amounts of redundancy pay have also been changed by the Employment Amendment Act 2010.
The First Schedule of the EA, as amended reads as follows:
* At least 1 year and up 5 years of service: 2 weeks' wages for each completed year of service up to and including the fifth year.
* More than 5 years and up to 10 years of service: 2 weeks' wages for each completed year of service for the first five years plus 3 weeks' wages for each completed year of service from the sixth year and up to and including the tenth year.
* More than 10 years: 2 weeks' wages for each completed year of service for the first five years plus 3 weeks' wages for each completed year of service from the sixth year and up to and including the tenth year plus four weeks' wages for each completed year of service from the eleventh year onwards.

[Prior to July 2011, severance/redundancy pay was set as follows:
* From 1 and up to 10 years of service: 2 week's wages for each completed year of service
* Beyond 10 years of service: 4 weeks' wages for each completed year of service.]
Africa 0 0 0.5 1 2 2.5 6.25 16.25
2019 Morocco Morocco Art. 70 LC: Redundancy payment shall be the same as severance pay. Africa 0.25 0.33 0.5 1 2 2.5 6.25 17.5
2019 Namibia Namibia No specific provision on redundancy payment. However, dismissed employees are entitled to severance pay in the event of any dismissal (not based on misconduct or poor performance) (sec. 35 LA). Economic dismissals are therefore included under severance pay. Africa 0 0 0.25 0.5 1 1.25 2.5 5
2019 Netherlands Netherlands No specific redundancy payment. Severance pay covers economic (individual and collective) dismissals Europe 0 0 0 0.66 1.32 1.65 3.33 8.33
2019 Niger Niger Severance pay + specific additional payment of 1 month's gross wages for individual and collective dismissals on economic grounds (Art. 86 LC).
Africa 1 1 1.2 1.4 1.8 2 3.5 7
2019 Norway Norway There are no statutory provisions on severance or redundancy payment. These can be included in collective agreements.

In addition, redundancy pay may be negotiated by the employer and the workers' representatives during the consultation and information process preceding collective redundancies. Art. 15-2(3)(h) WEA states that the employer must specify in written the criteria for calculation of extraordinary severance pay, if applicable.
Europe 0 0 0 0 0 0 0 0
2019 Russian Federation Russian Federation Article 178 of the Labour Code: any worker dismissed for economic reasons is entitled to a redundancy pay whose amount is one-month average salary. In addition the worker is entitled to an average salary during three months if the worker applied to the employment agency within two weeks after dismissal and was not placed in a job. Europe 1 1 1 1 1 1 1 1
2019 Rwanda Rwanda •The new provisions introduced by the 2018 LL under Art. 31 establish the basis of the payment of “terminal benefits” to employees upon the termination of an employment contract as a result of economic reasons, technological transfer or sickness, granted the employee completed at least 12 consecutive months of work.

Redundancy payment is payable at the following rates:
- 2 month' salary for less than 5 years of service;
- 3 months' salary for 5 to 10 years of service;
- 4months' salary for 10 to 15 years of service;
- 5 months' salary for 15 to 20 years of service;
- 6 months' salary for 20 to 25 years of service; and
- 7 months' salary for more than 25 years of service.
Africa 0 0 2 2 2 3 4 6
2019 Senegal Senegal Art. L62 LC: when a worker is dismissed on economic grounds, he or she will be entitled to 1 month's gross wages in addition to severance pay.
Africa 1 1 1.25 1.5 2 2.25 3.75 7.75
2019 South Africa South Africa Severance pay is required by the BCEA (sec. 41) and the LRA (sec 196) only where the termination is for operational requirements of the enterprise, meaning requirements based on the economic, technological, structural or similar needs of an employer. [= redundancy pay]. It shall amount to at least one week's remuneration for each completed year of continuous service with that employer.
This rate may be adjusted by the Minister from time to time after consultation with the competent bodies (NEDLAC and the Public Service Co-ordinating Bargaining Council).
Note that an employee who unreasonably refuses an offer of alternative employment loses his/her right to statutory redundancy pay.
Contracts of employment and collective agreements may provide for higher levels of redundancy pay.

Africa 0 0 0.25 0.5 1 1.25 2.5 5
2019 Spain Spain In the event of dismissal for economic reasons (individual or collective), the employees are entitled to redundancy payment in an amount equivalent to 20 days' wages per year of service up to a maximum of 12 months' wages (for periods of less than a year, this is calculated in proportion to the period of service). See arts. 51(4) and 53(1) ET. Europe 0.33 0.5 0.67 1.33 2.67 3.33 6.67 12
2019 Switzerland Switzerland Europe 0 0 0 0 0 0 0 0
2019 Tanzania, United Republic of Tanzania, United Republic of No specific redundancy payment: severance pay covers retrenchments (see art. 42 ELRA). However, severance pay can be higher than the statutory amounts in the event of retrenchment if so agreed during the consultation process. Africa 0 0 0.25 0.5 1 1.25 2.5 2.5
2019 Thailand Thailand Asia 1 1 3 3 6 6 15 23.33
2019 Tunisia Tunisia Severance pay covers dismissals for economic reasons (no specific redundancy payment): art. 22 LC.
________
L'indemnité de départ couvre les licenciements pour raisons économiques (pas d'indemnité spécifique pour les licenciements pour raisons économiques) : art. 22 LC.
Africa 0.2 0.3 0.4 0.8 1.6 2 3 3
2019 Turkey Turkey No specific redundancy payment. The employee whose contract is terminated with notice for economic reasons will be entitled to severance pay. Europe 0 0 1 2 4 5 10 20
2019 Turkmenistan Turkmenistan Art. 54 LC Europe 2 2 2 2 2 2 2 2
2019 Uganda Uganda Africa 0 0 0 0 0 0 0 0
2019 Uzbekistan Uzbekistan Europe 0 0 0 0 0 0 0 0
2019 Zambia Zambia See Minimum Wages and Conditions of Employment (General) Order, 2010 (S.I. No. 2 of 2011), art. 10 and MWCE (Shop Workers) Order 2010 (S.I. No. 1 of 2011), art. 9: redundancy payment shall be not less than 2 months for each completed year of service.
Africa 0 0 2 4 8 10 20 40
2018 Antigua and Barbuda Antigua and Barbuda See sec. C40 and 41 LC: provided that an employee has served at least one year with his or her present and predecessor employers, he or she will be entitled redundancy pay at a rate of at least one day's pay, at the employee's latest basic wage, for each month or major fraction thereof of his term of employment with his employer and any predecessor employer. Americas 0 0 0.4 0.8 1.6 2 4 8
2018 Argentina Argentina Art. 247 LCL: Where a dismissal is ordered on account of a reduction of work that is duly proved to be beyond the employer's control or for force majeure, the worker is entitled to receive compensation equal to half that provided for in cases of dismissal without good cause (= 1/2 compensation for unfair dismissal). Americas 0.5 0.5 0.5 1 2 2.5 5 10
2018 Armenia Armenia Art. 129 LC Europe 1 1 1 1 1 1 1 1
2018 Chile Chile Same as severance pay.
*Art. 163 LC foresees that, in case of dismissal for the economic reasons listed in art. 161 LC, dismissed workers who have been working for at least 1 year are entitled to severance pay. This indemnity (unless an individual or collective agreement is made with more favorable terms) shall amount to 30 days of the last monthly remuneration earned, for each year of service worked and fraction of a year greater than six months. The upper limit is 330 days for workers with a contract in force for one year or more (see art. 163 LC).
*See also substitute indemnity below under "Notes / Remarks"
Americas 0 0 1 2 4 5 10 11
2018 Japan Japan Asia 0 0 0 0 0 0 0 0
2018 Malaysia Malaysia Same as severance pay: see sec. 6(1) of the Employment (Termination and Lay-off Benefits) Regulations 1980. Asia 0 0 0.33 1 2 3.33 6.67 13.33
2016 Austria Austria Same as severance pay (no specific provision for economic dismissal) Europe 0 0 0 0 2 3 4 9
2012 Canada (Federal only) Canada (Federal only) No specific redundancy payment. An employee whose employment is terminated by way of redundancy will be entitled to severance pay as provided in sec. 235 CLC. Americas 0 0 0.17 0.17 0.27 0.33 0.67 1.33
2012 Congo Congo Africa 0 0 0 0 0 0 0 0
2012 Cyprus Cyprus Provided he has completed 104 weeks of continuous service, an employee who is dismissed on economic grounds is entitled to redundancy payments from the Redundancy Fund which is wholly financed by contributions from employers under the social insurance scheme. According to sec. 18 and the first schedule of the TEA, redundancy payment is calculated as follows:
* 2 weeks' wages for each year of service up to four year;
* 2,5 weeks' wages for each year of service from 5 to 10;
* 3 weeks' wages for each year of service from 11 to 15;
* 3,5 weeks' wages for each year of service from 16 to 20;
* 4 weeks' wages for each year of service beyond 20 years.
Redundancy payment is limited to 75,5 weeks' wages.
Europe 0 0 0 1 2 2.63 5.75 13.88
2012 France France No specific redundancy payment. Severance pay covers economic (individual and collective) dismissals (Art. L 1234-9 LC). Europe 0 0 0.2 0.4 0.8 1 2 5.33
2012 Slovakia Slovakia See sec. 76(3) LC, as amended by Act 257/2011, in force since 1 Sept. 2011. Prior to the amendments, in the event of economic dismissal employees were entitled to a redundancy payment of at least 2 month's pay, increased to 3 months' pay if the employee has at least 5 years of service.
New as of Sept. 2011: The rules on redundancy entitlements have been substantially modified: when an employee is terminated on economic grounds (namely: winding up or relocation of the employer, redundancy ) he/she is now entitled to either notice or severance pay but no longer both.
If an employee is given notice for the above mentioned reasons, the employee has the right to ask the employer to terminate employment relationship by agreement before the start of the notice period and the employer must comply with this request. In such cases only, the employee must be entitled to a severance allowance equal to not less than his/her average monthly earnings multiplied by the number of months of the notice period (sec. 76(2) LC).Where, on the other hand, there is no agreed termination, the employee is not entitled to any severance pay and the statutory notice periods apply.
Lastly, if upon agreement, the employee continues to work for only a part of the notice period, he/she will be entitled to some severance payment for the time he/she has not worked (sec. 76(3) LC).
Europe 1 1 2 2 2 3 3 3
2012 Slovenia Slovenia Same as severance pay: art. 109 ERA provides for severance pay including for economic reasons, as follows:
- 1/5 of the employee's monthly wages in the last three months for each year of employment with the employer, if employed by the same employer for more than one and up to five years;
- 1/4 of the same basis for each year of employment with the employer, if employed by the same employer for the period from five to fifteen years;
- 1/3 of the same basis for each year of employment with the employer, if employed by the same employer for the period exceeding fifteen years.
Unless otherwise stipulated in the collective branch agreement, severance pay cannot exceed 10 month's wages (art. 109 (4) ERA).
Europe 0 0 0.2 0.4 0.8 1 2.25 5.16
2010 Czech Republic Czech Republic Sec. 67 LC: This section refers to "an amount of at least three times the average earnings" for economic dismissal. Europe 3 3 3 3 3 3 3 3
2010 Iran, Islamic Republic of Iran, Islamic Republic of See sec. 9 of the Law Facilitating the Renovation of Industries , quoted by Pars Associates, Attorneys-at-Law, in " LIS 643 and 644, Day 25 & Bahman 2, 1387 (14-21/01/2009)", published on the "Blog of Guillot-Pars associates" (http://avocats.fr/space/guillot-pars):

- In case of agreement by and between both parties (labourers and management) in respect of the required and redundant workforce, the redundant workers will be laid off by payment of two months' aggregate salaries and benefits for each year of service for the factory concerned or through any other way to be mutually agreed upon. The laid off workers will be covered by unemployment insurance according to the criteria described in Sub-clause (a) of Article 7 of the Unemployment Insurance Act approved on September 16, 1990.
- In the absence of agreement between the parties, the dispute shall be referred to a committee consisting of representatives of the government and the Social Security Organization as well as higher organizations of employers and workers, in order that the said committee lays off the redundant workers and pays them the amount of severance pay set forth in the Labour Act (= 1 month per year of service).
Asia 0 0 2 4 8 10 20 40
2010 Mexico Mexico Art. 436 FLA: 3 months' salary + seniority award (12 days per year of service). Americas 3 3 3.4 3.8 4.6 5 7 11
2014 Portugal Portugal No specific redundancy payment. Severance pay covers economic dismissals (see remarks under severance pay). Europe 0 0 0.4 0.8 1.6 2 4 8
2015 Tajikistan Tajikistan According to the Art. 50 LC, workers dismissed from the organization due to the reduction of work or change of conditions of work are guaranteed:
1) Severance pay in an amount not less than the average monthly earnings;
2) To maintain the average monthly earnings for the period of employment during the second and third months of dismissal, by decision of the employment if the employee in advance, within ten days after the dismissal appealed to the organ and was not employed;
3) The right to early retirement for one year before the statutory deadline of persons of retirement age who have seniority, entitling the retirement pension.
Europe 1 1 1 1.25 2.5 5
2015 Viet Nam Viet Nam Article 49. Job-loss allowance.
(1) Where the employment contract is terminated according to Article 44 [Changes in structure, technology or due to economic reasons] and 45 [merger, consolidation, division, or separation of enterprises and cooperatives] of this Code and the employee has worked on a regular basis for the employer for at least 12 months, the employer shall pay a job-loss allowance to the employee. This job-loss allowance shall be one month wage for each year of employment, and shall not be lower than 2 month’s wage.
For more detailed information on the qualified period of work for the calculation of job-loss allowance see Article 49(2) LC.

See also articles 14 and 15 of the 2015 Decree.
Asia 2 2 2 2 4 5 10 20