→ 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 (§ 23(1)(6)),
- Dissolution of the employer's business or downsizing (§ 23(1)(7)),
- Criminal conviction which hinders the continuation of the work (§ 23(1)(8)),
- Employee's refusal to be re-assigned to his/her previous position (§ 23(1)(10)).
Thus, employees who have been dismissed for other reasons (i.e., conduct or capacity-based reasons) are not entitled to severance pay (§ 23(1)(2, 3, 4, 5, 9 and 11).
→ Under section 25(3) LL, the organization has to pay the amount of the last salary of the grade as an assistance proportionate to the period of service to the workers whose contracts have been terminated on the basis of the provisions mentioned in parts (6, 7, 8, and 10) of paragraph (1) of Section 23 of this law as the following:
- If the length of service is 1 year: one month's salary;
- 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.

▷ Severance pay is payable to a worker who has been continuously employed for at least one year in the event of a:
- Termination based on physical or mental incapacity or continued ill-health
→ Section 22 on discharge from service indicates that :
(1) A worker may be discharged from service for reasons of physical or mental incapacity or continued ill-health certified by a registered medical practitioner.
(2) If a worker who has completed not less than one year of continuous service is so discharged, he shall be paid by the employer compensation at the rate of thirty days' wages for every completed year of service, or gratuity, if any, whichever is higher.
- Termination with notice without any reason
(§ 26(4) LA).
→ Section 26(4) LA on employment by employers otherwise than by dismissal indicates that: Where the employment of a permanent worker is terminated under this section, he shall be paid by the employer, compensation at the rate of thirty days' wages for every completed year of service or gratuity, if any, whichever is higher, in addition to any other benefit to which he may be entitled under this Act.
▷ Note: Under section 2(10), 'gratuity' means wages payable on termination of employment of a worker, which shall be equivalent to not less than thirty days' wages for every completed year of service or for any part thereof in excess of six months;
It shall be in addition to any payment of compensation or payment in lieu of notice due to the termination of services of a worker on different grounds.
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.
▶ Exception: In case a worker is dismissed for misconduct other than theft, misappropriation, fraud, embezzlement, breaking in the establishment, „riot“ or “disorderliness “, they are entitled to a severance pay of at least 15 days' wages for each completed year of service (§ 23(3) LA).

No severance pay upon dismissal for reasons other than redundancy (sec. C40 LC)

Art. 129 LC

▶ ECL
→ Sections 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 of 6 months to 1 year is to be counted as 1 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 shall be for not more than 12 years of work.
→ Section 46 indicates that: The employing unit shall pay financial compensation to a worker under one of the following circumstances:
(1) The worker revokes the labour contract pursuant to the provisions in section 38 of this Law;
(2) The employing unit proposes revocation of the labour contract to the worker pursuant to the provisions in section 36 of this Law, and the parties reach an agreement thereon through consultation;
(3) The employing unit revokes the labour contract pursuant to the provisions in section 40 of this Law;
(4) The employing unit revokes the labour contract pursuant to the provisions in the first paragraph of section 41 of this Law;
(5) The fixed-term labour contract is terminated pursuant to the provisions in Subparagraph (1) of section 44 of this Law, except that the worker does not agree to renew the contract even though the employing unit maintains the same conditions as, or offers better conditions than, the ones stipulated in the previous contract;
(6) The labour contract is terminated pursuant to the provisions of Subparagraph (4) or (5) of section 44 of this Law; or
(7) Under any other circumstances provided for by laws or administrative regulations.
→ Section 47 provides that: section 47 Financial compensation shall be paid on the basis of the number of years a person works in a unit, the rate being one month’s salary for the work of one full year. If he has worked for six months or more but less than one year, the time shall be calculated as one year; and if he has worked for less than six months, he shall be paid half of his monthly salary as financial compensation.
If the monthly salary of a worker is three times the average monthly salary of the workers of the region for the previous year, which is published by the people’s government of the municipality directly under the Central Government or by that of the city divided into districts where the employing unit is located, the rate for his financial compensation payable shall be three times the average monthly salary of the workers, and the number of years involved shall not exceed 12 years.
For the purposes of this section, the monthly salary means the average of a given worker’s monthly salary for the 12 months prior to the revocation or termination of the labour contract.
▶ Implementing Regulations of the PRC Employment Contracts Law (IR-PRC)
→ Section 27 of the IR-PRC indicates that: The monthly wage to calculate severance specified in section 47 of the ECL shall be based on the income due to the employee, including monetary income, such as hourly wages or piece rate wages, bonuses, allowances and subsidies, etc. If the employee’s average monthly wage for the twelve months preceding the termination or the rescission of the employment contract is lower than the local minimum wage, the local minimum wage applies. If the employee worked for less than twelve months, the average wage shall be calculated according to the employee’s number of months actually worked.

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).

Article 245 of LCL provides that in cases of dismissal ordered by the employer without just cause, with or without prior notice, the employer must pay the worker compensation equivalent to one (1) month's salary for each year of service or fraction greater than three (3) months, taking as a base the best monthly, normal and habitual remuneration accrued during the last year or during the time of rendering of services if this were less. Said base may not exceed the equivalent of three (3) times the monthly amount of the sum resulting from the average of all the remunerations provided for in the collective labor agreement applicable to the worker, at the time of dismissal, for the legal or conventional day, excluding seniority.

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).

Sec. 89 LC: Employers shall provide employees (workers) who are still working a seniority payment equal to 15 days per year of a sum of wages and other payments. Every six months, the employer shall pay the employee half of seniority bonus. If an Unfixed Duration Contract(UDC) is terminated by the employer according to the labour law, the employer is required to grant the employee/worker whose the remaining seniority period from 1 month to 6 months a seniority payment equals to 7 days of a sum of wage and other payments. In the case of labour contract is terminated by the serious misconduct of the worker/employee, the seniority payment is not granted. The employer has also to pay the seniority payment to the worker/employee if the worker is terminated for reasons of illness. The scope and form of the seniority payment’s implementation shall be determined by the Prakas of the Minister in charge of Labour.

Note that sec. 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.

- 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.

Article 64 (a) of Labour Code. (As modified by article 28 of Law 789 of 2002, published in Official Gazette No. 45.046 of December 27, 2002.)

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.

Article 29 of Labour Code provides that if the employment contract for an undetermined time ends due to unjustified dismissal, or some of the causes provided for in article 83 or other beyond the worker's will, the employer must pay severance payment in accordance with the following rules :
1. After continuous work of not less than three months nor more than six, an amount equal to seven days of salary.
2. After continuous work of more than six months but less than one year, an amount equal to fourteen days of salary.
3. After continuous work of more than one year, with the amount of days of salary indicated in the following table:
a) 1 year: 19.5 days per year worked; b) 2 years: 20 days per year worked or fraction exceeding six months; c) 3 years: 20.5 days per year worked or fraction exceeding six months; d) 4 years: 21 days per year worked or fraction exceeding six months; e) 5 years: 21.24 days per year worked or fraction exceeding six months; f) 6 years: 21.5 days per year worked or fraction exceeding six months; g) 7 years: 22 days per year worked or fraction exceeding six months; h) 8 years: 22 days per year worked or fraction exceeding six months; i) 9 years: 22 days per year worked or fraction exceeding six months; j) 10 years: 21.5 days per year worked or fraction exceeding six months; k) 11 years: 21 days per year worked or fraction exceeding six months; l) 12 years 20.5 days per year worked or fraction exceeding six months; m) 13 years and following: 20 days per year worked or fraction exceeding six months..

According to article 58 of Labour Code, in case the termination of employment contracts occurs without a cause, the worker is entitled do 30 days of salary per year of service or respective fraction of it, not less than 15 days of salary. The parameters to the calculation of severance pay must consider the salary as a maximum amount of 4 times the statutory minimum wage.

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.

Art. L 1234-9 LC : right to severance pay after a tenure of at least 8 months (instead of 1 year as was previously the rule) without interruption, except in case of serious misconduct.
The calculation modalities are determined by art. R 1234-2 LC:
The statutory minimum is 1/4 (instead of 1/5) of monthly wages per year of service.
For employees with more than 10 years of service, 1/4 for the first 10 years and 1/3 for the following years. (the amount was modified only for the first 10 years of service).
Ex:
Tenure of 1 year: 1/4 x 1 = 0.25 month
Tenure of 20 years: (1/4 x 10) + (1/3 x 10) = 5.83 months

Article 38 (1) LC: When terminating a labour agreement on any of the grounds under Article 37(1)(a, f, i, n) of this Law, employers shall be obliged to notify employees about it in writing at least 30 calendar days in advance. Besides, employees shall be granted a severance pay in the amount of at least one month’s salary within 30 calendar days after terminating the labour agreement. (...)
Alternatively, Article 38 (2) LC provides that when terminating a labour agreement on any of the grounds under Article 37(1)(a, f, i, n) of this Law, employers may notify employees about it in writing at least three calendar days in advance. In this case, employees shall be granted a severance pay in the amount of at least two months’ salary within 30 calendar days after terminating the labour agreement.

Act. 4093/2012, subparagraph IA.12, sections 2 and 3

Article 82 provides that if the employment contract for an indefinite period ends after the trial period has elapsed, due to the unjustified dismissal of the worker, or for any of the causes provided for in Article 79, the employer must pay a compensation for time served equivalent to one month's salary for each year of continuous service. If the services do not last one year, proportionally to the term worked. For the purposes of calculating continuous services, the date on which the employment relationship began, whatever it is, must be taken into account.

Article 84 provides that in fixed-term contracts and for the execution of a determined work, each of the parties may terminate them, without just cause, before the end of the term or the completion of the work, paying the other the corresponding damages and losses, under the discretion of a labor inspector or Labour Judge, if a litigation has already arisen.
If the premature termination of the contract has been determined by the employer, the damages to be paid to the worker cannot be less than one day's salary for each month of continuous work performed, or a smaller fraction of the time, otherwise that term has been adjusted. This minimum of damages must be satisfied at the time of termination of the contract and is deductible from the greater amount of damages that may subsequently be determined by the labor authorities.

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, 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, the severance pay shall be paid as follows:
- after 15 years of service any employee who voluntarily terminates his employment is entitled to 35% of the respective accrued severance pay;
- after 6 months of continued service in the event of an employee's death, the heirs are entitled to 70% of the respective accrued severance.

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)).

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.

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.

No severance pay.
The FLA does not make a conceptual difference between severance and redundancy payment. The term used is "indemnización " irrespective of the ground of the termination.

However, in the case of a justified dismissal, permanent workers are always entitled to the payment of the seniority award (Art. 162 FLA). The calculation should be proportional to the period of time that the worker rendered his/her services (12 days per year –or proportion of year- worked).
Note: If the worker earns daily more than two minimum wages the seniority award is capped.

- 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).

Article 91 of Labour Code establishes severance payment in case of termination of employment contract without a valid cause. In the event of dismissal without just cause provided by the employer, having or having not given prior notice, the employer shall pay the worker compensation equivalent to fifteen daily wages for each year of service or fraction of six months, calculated in the form mentioned in subsection b) of Article 92.

Article 92, subparagraph (b) provides that the corresponding compensation will be calculated based on the average of the wages earned by the worker, during the last six months that the contract is in force or a minor fraction of time, if said term had not been adjusted.

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. 299 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. 298 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.

- 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)

Article 178 of the Labour Code: the worker is entitled to a two-week salary severance pay in some cases of dismissals.

•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.

The provision on severance pay (art. 190) has been deleted from the 2005 Labour Law.

No provision on severance pay in the Employment Act.

Since the adoption of Act No. 362/2012 Coll. amending the Labour Code, the extent of the employee's entitlement depends on whether he/she has received notice from the employer or whether he/she has agreed with the termination agreement.
There is no general right to severance pay except for redundancies.

However, the LC foresees specific severance payment in the following cases:
*Article 76, paragraph 1, LC: "An employee with whom the employer terminates his employment relationship by notice for reasons stated in Article 63 paragraph 1 letter a) or letter b) or due to the fact that the employee, according to a medical assessment, has lost his/her ability to perform his/her work for a long time due to his/her medical condition, shall be entitled at the end of employment relationship to severance pay at least in the amount of [up to] (...) d) four times his/her average monthly earnings, if the employee´s employment relationship lasted at least twenty years."
*Article 76, paragraph 2, LC: (...)
*Article 76, paragraph 3, LC: "If an employer terminates an employee´s employment relationship by notice or by agreement on the reasons that the employee must no longer perform his/her work as a result of an occupational accident, occupational disease or the risk of such a disease, or that the employee has already received the maximum permitted level of exposure in the work place as determined by a decision of a competent public health body, the employee shall be entitled to a severance pay equal to at least ten times his/her monthly earnings; this shall not apply if an occupational accident was caused by the employee breaching, through his/her own fault, (...)".

Finally, Article 76, paragraph 7, LC provides that "An employer may pay an employee severance pay in other cases besides those laid down in paragraphs 1 and 2.“.

- 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).

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).

Update as of 2016: Article 51 LC states:
The employee is paid a one-time severance pay upon termination of the employment contract: at the initiative of the employer and in circumstances beyond the control of the parties.
The amount of the severance pay cannot be lower than the size of the employee’s three average monthly salaries.

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).

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."

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).

The worker is entitled to receive compensation from the empoyer at the end of the employment relationship at the initiative by the employer, except in cases in which the dismissal was for cause (gross misconduct), in which case the just cause must be doubtless proved.
The rules governing the determination of the amount of severance pay (IPD) differ according to whether the workers are monthly wage earners or day laborers (Laws No. 10,489 of 6/6/1944, No. 10,542 of 20/10/44 and No. 10,570 of 15/12/44)
Law No. 10.489 of 1944 (Article 4): For the monthly paid workers, the compensation for wrongful dismissal is one month wages for every year of service, and limited to six-month pay. The basis of calculation will depend on the form of hiring; the daily wage or the monthly payment. This base will be increased by all the incidences (salary benefits) that this worker has.

In the case of a day laborer, the seniority for the purpose of determining the number of days that correspond to the worker as compensation is calculated taking into account the day of dismissal backwards, year by year, the number of days made in each of the years during the entire period in which he has worked. The maximum possible compensation in all cases is 150 days.

Domestic workers are rules by Law No 12.597/1958, by which the compensation is only due when the worker has reached at least 1 years of lenght of service.

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.

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.

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.

There is no general right to severance pay upon dismissal except in the event of economic dismissal (see below).

Only for dismissals based on the worker's capacity, state of health and insufficient qualifications: art. 186 (2) LC.

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.

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.

▶ Labour Code
→ Section 37(1) LC indicates that: save in the case of serious misconduct, where a contract of employment of unspecified duration is terminated by the employer, the worker with no less than two successive years of seniority in the enterprise shall be entitled to severance pay distinct from pay in-lieu-of notice, which shall be determined giving regard to the worker's seniority.
▶ Regulatory text
▷ See Sections 1 and 2 of the ARRÊTÉ N° 016/MTPS/SG/CJ of 26 May 1993 (Fixant les modalités d'attribution et de calcul de l’indemnité de licenciement):
- 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 the 15th year.
▻ 35% per year from the 16th to the 20th year.
▻ 40 % per year after the 21st year.

▷ Overall, there is no universal statutory severance pay for any terminations under the current 2009 Labour Code.
▷ The Labour Code refers to both damages (dommages-intérêts) for unfair dismissal and severance pay (indemnité de licenciement).
→ Section 156 LC clearly states that: "These damages (dommages-intérêts) are not to be confused with either compensation for failure to observe the notice period or severance pay."
▷ However, no clear statutory definition, conditions, or amounts for severance pay are provided in the Labour Code. Severance pay (and any redundancy pay) is not mandatory and is typically regulated by collective agreements, individual contracts, or sectoral regulations.
▷ The following Sections of LC contains references related to compensation, service allowance, damages (dommages- intérêts) and severance pay:
→ Section 142 (3) LC refers to severance pay, providing that: In the event that one or more workers refuse in writing to accept the measures referred to in the preceding paragraph, they shall be dismissed with payment of notice and severance pay, if they meet the conditions for entitlement.
→ Section 153 (paragraph 1) LC indicates that: Any termination of the employment contract entitles the employee to the settlement of their legal rights. Wages and compensation must be paid upon cessation of service or within a maximum period of five (5) days. (...).
→ Section 154 LC states that: A service allowance is paid to any employee eligible to claim their retirement rights and/or to the beneficiaries of a deceased employee.
The method of calculating this allowance is identical to that of severance pay provided for by the regulations in force.
→ Section 155 stipulates that: Unjustified termination of the employment contract by one of the parties entitles the other party to damages (dommages- intérêts).
→ Section 156 indicates that: The amount of damages (dommages- intérêts) is determined taking into account all factors that may justify the existence and determine the extent of the harm caused, including:
- when the responsibility lies with the employee, the harm suffered by the employer due to the non-performance of the employment contract;
- when the responsibility lies with the employer, customary practices, the nature of the services performed, the employee's seniority, services, age, and any acquired rights related to the employee's family situation.
These damages are not to be confused with either compensation for failure to observe the notice period or severance pay.

→ Under Section 159 LC, when negotiations have failed, or if, despite the measures considered, some dismissals prove necessary, the employer shall carry out the dismissals in compliance with the rules of notice, severance pay and the selection criteria adopted. (...).
→ Section 169 LC indicates that: An employee who, at the time of the effective termination of his/her work, has at least two years of seniority in the company, is entitled to severance pay at the expense of the employer.
This severance pay shall be calculated on the basis of a percentage of the average gross monthly salary for the last twelve months - excluding family dependency allowances.
This percentage is equal to :
- 25% per year for the first five years;
- 30 % per year for the following five years; and
- 35 % per year from the eleventh year onwards.
The seniority to be taken into consideration shall be calculated under the same terms and conditions as defined in Section 162 (Paragraph 4) LC. However, the amount of severance pay to be calculated on that basis, shall be reduced by the amount of termination indemnities previously received by the employee in the company.
→ Under Section 162, the seniority to be taken into account is calculated by adding together the months of actual or equivalent work completed by the employee, each period of twelve months is equivalent to one year.

DECREE N° 96-201 OF MARCH 7, 1996, CONCERNING SEVERANCE PAY

→ Section 1 of Decree N° 96-201 indicates that: If an employer terminates a work contract, an employee who has completed at least one year of effective service and has not committed a serious offence is entitled to severance pay. This pay is separate from any notice period.

→ Section 3 of Decree N° 96-201 provides that: Severance pay is calculated as a percentage of the employee's total monthly salary over the 12 months before the termination date, for each year they worked at the company. The total salary includes all payments received for work, but excludes reimbursements for expenses.
The percentage is determined by the employee's seniority:
▻ 30% for up to and including the fifth year.
▻ 35% for the period from the sixth to the tenth year, inclusive.
▻ 40% for the period after the tenth year.
Fractions of a year are also included in the calculation and are rounded down to the nearest month.

Severance pay is due to employees who have completed their probationary period and are not eligible for a pension. The calculation for the first year is 30 days' wages, and for each subsequent year, an additional one-third of a month's wage.

→ Section 39 LP indicates that:
(1) A worker who has completed his probation period and who is not eligible for pension shall have the right to receive severance pay from the employer where:
a) His contract of employment is terminated because of permanent cessation of operation of the Undertaking due to bankruptcy or for any other cause;
b) His contract of employment is terminated by the initiation of the employer in violation of the law;
c) He is reduced as per the conditions prescribed under this Proclamation;
d) Where the worker resigned due to sexual harassment or sexual violence by the employer or managerial employee; or where such act was committed by a co-worker and the incident was reported to the employer but the latter failed to take appropriate measure in due time;
e) He has terminated his contract of employment because of the employer’s maltreatment affecting his human dignity or morale or constituting a criminal offence under the Criminal Code;
f) He has resigned due to failure of the employer to take measures despite being informed of a threat to his safety or health;
g) His contract of employment is terminated because of his partial or total disability as certified by medical board;
h) Where he has given service to the employer for a minimum of five years’ service and his contract of employment is terminated because of sickness or death or his contract of employment is terminated on his own initiative provided that he has no contractual obligation relating to training to render service to the employer;
i) His contract of employment is terminated on his own initiative because of HIV/AIDS.

→ Section 40 provides for the "amount of severance pay"
(1) The severance pay referred to in Section 39 of this Proclamation shall:
(2) Be thirty times the average daily wages of the last week of service for the first year of service; and for the service of less than one year, be calculated in proportion to the period of service.
(3) In the case of a worker who has served for more than a year, payment shall be increased by one-third of the amount referred to in Sub-section (1) of this Section for every additional year of service; provided, however, that the total amount shall not exceed twelve months’ wage of the worker.
(…).

In addition, notes might be taken of provisions of Section 41 LP which provides for "compensation for termination of contract of employment without notice":
(1) A worker who terminates his contract of employment in accordance with Section 32(1) of this Proclamation shall be entitled, in addition to the severance pay referred to in Section 40 of this Proclamation, to a payment of compensation which shall be thirty times his daily wages of the last week of service. This provision shall apply to a worker covered by the relevant pension law.
(2) However, where the termination is based on Section 32 (1) (b) the worker shall, in addition to severance pay, be entitled to compensation of his daily wage multiplied by ninety. This provision shall also apply to a worker covered by the relevant pension law.

→ Section 32 on "Termination of contract of employment without prior notice" indicates that:
(1) The following shall be good causes to terminate a contract of employment without prior notice:
a) Where the employer has committed any act contrary to human dignity and morals or other acts punishable under the Criminal Law against the worker;
b) Where the workers has been a victim of sexual harassment or sexual violence by the employer or a managerial employee;
c) In the case of imminent danger threatening the worker’s safety or health, where the employer, having been made aware of such danger, failed to act within the time limit in accordance with the early warning given by the competent authority or appropriate trade union or the worker himself to avert the danger;
d) Where the employer has repeatedly failed to fulfil his basic obligations towards the worker as prescribed under this Proclamation, collective agreement, work rules or other relevant laws.

▷ Severance pay
→ Section 87 of the Labour Code 2021 entitles workers dismissed for reasons other than serious misconduct to severance pay, except during the trial period. This provision supersedes section 70 of the Labour Code 1994, eliminating the requirement for a minimum two-year service period to qualify for severance pay.
→ Under section 90 of the LC 2021, severance pay or service compensation is calculated at a minimum of 20% of the average monthly salary over the last twelve months of effective work per year of continuous service with the same employer. This rate is a mandatory minimum, but collective agreements, company or establishment agreements, and individual contracts may provide more favourable terms. Fractions of years less than thirty calendar days are included in the calculation, and collective agreements may stipulate even more advantageous conditions.

▷ Unfair dismissals - Payment of damages
→ Section 91 of the LC 2021 defines "unfair dismissals" as those without valid grounds, motivated by a worker’s opinions, union activities, pregnancy, union membership or non-membership, or claims for recognized rights. Also deemed unfair are dismissals violating labour inspector authorization procedures, refusals to reinstate workers after contract suspension (per sections 51 and 209 LC 2021), or terminations due to workers filing complaints or participating in legal actions against employers for alleged legal violations. Unfair dismissals entitle workers to damages, with additional sanctions under section 98 of LC 2021, in cases of unfair economic dismissals. The determination of unfairness is left to competent courts.

▷ Dismissal during the trial period
→ Section 58 LC 2021 regarding termination of employment relationship during the trial period provides that the trial period may be terminated before the end of the term without any formality, notice, or termination compensation, with the exception of paid leave.

Severance pay is not statutorily required for individual dismissals for non-economic reasons, but it may be ordered by the "National Labour Commission" as a remedy for unfair termination.
→ Section 30 (1) Where the employment of a worker is terminated, the worker is entitled to annual leave in proportion to the period of service in the calendar year.
(2) The worker shall not be deprived of any other grants or awards to which the worker is entitled, including payment in lieu of notice of termination.
(3) Subsections (1) and (2) do not apply to cases where the employer has the right to dismiss a worker without notice.
→ Section 64 indicates that: Remedies for unfair termination
64. (1) A worker who claims that the employment of the worker has been unfairly terminated by the worker’s employer may present a complaint to the Commission.
(2) If, upon investigation of the complaint, the Commission finds that the termination of the employment is unfair, it may
(a) order the employer to reinstate the worker from the date of the
termination of employment;
(b) order the employer to re-employ the worker, either in the work for which the worker was employed before the termination or in other reasonably suitable work on the same terms and conditions enjoyed by the worker before the termination; or
(c) order the employer to pay compensation to the worker.

→ Under Section 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.
→ Section 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 2,288 hours, as set in Section 184 LC (i.e. 44 hours per week).
More favourable provisions for the employee may be included in the employment contract, the collective labour agreement or the internal regulations.
The employee also has the right to benefits, in accordance with the applicable legislation and regulations, including compensation for loss of employment due to economic, technological, or structural reasons.
▷ Note: To determine the monthly working time: 2288 hours divided by 12, or 191 hours as the 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.
▷ The simulation tool established by the Ministry of Labour to calculate severance pay is available online.

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.

No provision in the LC. However, severance pay is governed by the New 2022 Inter-occupational Collective Agreement (ICA 2022):
→ Section 38 of the ICA 2022 states that: In the event of dismissal by the employer, a worker who has completed a continuous service period in the company at least equal to the reference period for entitlement to leave, as set by the regulations in force, is entitled to severance pay distinct from the notice period.
▻ Workers are eligible for severance pay when they reach the required length of service for its attribution following multiple hires within the same company, if their previous departures were caused by a workforce reduction or job elimination. In such cases, the amount of the severance pay is determined by deducting any sums that may have been paid for this reason during previous dismissals.
▻ This indemnity is calculated, for each year of service completed in the company, by a determined percentage of the average total monthly wage of the twelve (12) months of activity that preceded the date of dismissal.
▻ The term "total wage" refers to all benefits that constitute compensation for work, with the exception of those that are reimbursements of expenses.
▻ The percentage is set at:
A) Individual or for personal reasons dismissal:
▻ 25% for the first 5 years;
▻35% for the following 5 years;
▻40% for the period extending beyond the tenth year.
B) Dismissal for economic, technological, or structural reasons:
▻30% for the first 5 years;
▻35% for the following 5 years;
▻40% for the period extending beyond the tenth year.
C) Retirement Departure:
▻ 30% for the first 5 years;
▻ 35% for the following 5 years:
▻ 45% for the period extending beyond the tenth year.
D) In case of death:
▻ 30% for the first 5 years;
▻ 35% for the following 5 years;
▻ 45% for the period extending beyond the tenth year.
→ In the calculation made on the basis indicated above, fractions of a year must be taken into account.
Severance pay is not due:
▻ in the case of resignation;
▻ in the case of termination of the employment contract resulting from gross misconduct by the worker;
▻ when the worker definitively leaves service to begin receiving the statutory retirement allowance.
However, in this latter case, a special allowance, known as "retirement departure indemnity," is paid to the worker. This indemnity is calculated on the basis of the average total monthly wage (SMGM) and according to the percentages set in paragraph C of this Section.

No statutory severance pay.

No provision in the LC. However, severance pay is governed by Section 30 of the Inter-occupational Collective Agreement:
Workers are entitled to severance pay, provided they have been continuously employed for a period of at least one year and have 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.

→ Section 60 LA Indicates that:
(1) Subject to the provision of the Social Insurance Act 1990 or any other beneficial scheme, the worker who completed a period of not less than three years of continuous service shall be entitled to a gratuity for the period of his/her service to be calculated as follows: -
(a) If he/she has completed a period of not less than three years, and not more than ten years, he/she is entitled to one month’s basic salary in respect of each year of service;
(b) If he/she has completed more than ten years, he/she shall be entitled to one month and half of the basic salary and if he/she has completed more than fifteen years, he/she shall be entitled to one and three quarters of a month’s basic salary in respect of each additional year of service; provided that the gratuity shall not exceed thirty six months’ basic salary.
(2) The gratuities are calculated on the last month’s basic salary
(3) The gratuity of the production worker shall be calculated on the average of the actual income during the last three years.

▻ The amount of severance pay is subject to negotiation between the employer and the workers or the trade union that represents them.
→ Section 89 EA: The calculation of severance pay shall be negotiable between the employer and the workers or the labour union that represents them.
→ Under Section 87 EA, severance pay is due in the following circumstances:
- unfair dismissal of the employee by the employer
- death of the employee at work not attributable to any misconduct of the employee
- termination by the employee due to physical incapacity not attributable to any misconduct of the employee
- termination by reason of the death or insolvency of the employer;
- termination by a labour officer following the inability or the refusal of the employer to pay wages
- other cases as provided by the Minister.
▷ The law also lists circumstances where severance pay is not due (i.e summary dismissal).
→ Section 88 EA: (1) No severance allowance shall be paid in circumstances where an employee -
(a) is summarily dismissed with justification;
(b) is dismissed by the employer and unreasonably refuses to accept an offer of re-employment by the employer at the same place of work, under no less favourable terms and wage rate than he or she was employed at immediately prior to the dismissal; or
(c) abandons his or her employment, or absconds from his or her place of work without leave for a period of more than three days without any explanation being provided to the employer.
(2) No severance allowance shall be paid where -
(a) the employer is a partnership, and the employee's employment ceases on the dissolution of the partnership and the employee either enters the employment of one or more of such partners immediately after such dissolution or the employee is offered, and unreasonably refuses employment on less favourable terms by one or more of such partners;
(b) the employee's employer dies, and the employee either enters the employment of the personal representative, widow, widower, or any heir of the deceased employer or immediately after such death, he or she is offered, and unreasonably refuses employment on less favourable terms by any such person or persons; or
(c) the contract which is terminated is a probationary contract.
(3) Where an employee accepts employment in the circumstances mentioned in subsection (2)(a), there shall be no break in continuity of service and the new employer or employers shall assume responsibility for all rights, including severance allowance of the employee arising in connection with his or her period of employment with his or her former employer or employers.
▷ Note: It is presumed that, in the event of ordinary fair dismissal (including collective dismissals for economic reasons), the dismissed employee is not entitled to severance pay.

→ Under section 3 of the ECA 2019:
▻ “severance pay” means the wages and benefits paid to an employee whose contract of employment is terminated in accordance with section 54.
▻ “gratuity” means a payment made to an employee in respect of a person’s service on the expiry of a long-term contract of employment based on basic pay earnings that have accrued to the employee during the term of service.

→ Under Section 54 of the ECA 2019:
(1) An employer shall pay an employee a severance pay, where the employee’s contract of employment is terminated or has expired, in the following manner:
(a) where an employee has been medically discharged from employment, in accordance with section 38(5);
(b) where a contract of employment is for a fixed duration, severance pay shall either be a gratuity at the rate of not less that twenty-five percent of the employee’s basic pay earned during the contract period or the retirement benefits provided by the relevant social security scheme that the employee is a member of, as the case may be;
(c) where a contract of employment of a fixed duration has been terminated, severance pay shall be a gratuity at the rate of not less than twenty-five percent of the employee’s basic pay earned during the contract period as at the effective date of termination;
(d) where a contract of employment has been terminated by redundancy in accordance with section 55, the severance pay shall be a lump sum of two months’ basic pay for each year served under the contract of employment; or
(e) where an employee dies in service, the severance pay shall be two months’ basic pay for each year served under the contract of employment.
(2) Where an employee dies before receiving the severance pay, the employer shall pay the severance pay to the employee’s estate in accordance with the Intestate Succession Act or the Wills and Testate Estates Act.
(3) The severance pay under this section shall not be paid to a casual employee, a temporary employee, an employee engaged on a long-term contract or an employee serving a period of probation.
(4) The Minister shall prescribe the formula for the minimum computation of severance pay.

▶ In addition, severance pay is equally due when a worker falls within the scope of the Minimum Wages and Conditions of Employment (General) Order, 2010 ([MWCEGO) or the Minimum Wages and Conditions of Employment (Shop Workers) Order, 2010 (MWCESO).
▻ 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 than 2 months' basic pay for each completed year of service (MWCEGO: sec. 9 and MWCESO: sec. 10).
▻ The 2010 Minimum Wage Orders also foresee in their sections 12 (MWCEGO) and 11 (MWCESO) 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), the Labour Commissioner or labour officer determines whether the circumstances of the case warrant summary dismissal of the employee. The employee so dismissed shall be entitled to severance benefits of no less than two months’ basic pay for each completed year of service.

▷ Note: No explicit references are made to severance or redundancy pay under the labour legislation. However, the Labour Amendment Act of 2023 introduced significant changes to the retrenchment process in Zimbabwe, amending Section 12C of the Labour Act [5 of 2015] to provide guidelines. In addition, the Minister of Public Service, Labour, and Social Welfare promulgated the Labour (Retrenchment) Regulations, 2024 (Statutory Instrument 191 of 2024), which came into effect on 6 December 2024. These regulations establish a framework for handling retrenchment in Zimbabwe.

▶ Under section 5 of the Labour (Retrenchment) Regulations, 2024: "Unless better terms are negotiated and agreed between the employer and the employee or employees concerned or their representatives, a minimum retrenchment package of one month’s salary or wages for every year of service as an employee or the equivalent, lesser proportion of (one month’s salary or wages for a lesser period of service) shall be paid as compensation for loss of employment.
▶ Under section 12C (2) of the Labour Amendment Act, 2023 "Retrenchment and compensation for loss of employment on retrenchment":
(2) Unless better terms are negotiated and agreed between the employer and the employee or employees concerned or their representatives—
(a) a minimum retrenchment package shall be payable by the employer as compensation for retrenchment not later than days from the date on which the retrenchment takes effect, unless the affected employees agree to a longer or shorter or staggered period of payment of the package; (...).

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).

According to articles 185 and 188 of Labour Code, severance pay shall be paid considering lenght of service:
1) Up to three years of service, with the value corresponding to three months of remuneration; and,
(2) Over three years, with the value equivalent to one month of remuneration for each year of service, without in any case that value exceeding twenty-five months of remuneration.

Bonus for “desahucio” is due in the amounts to 25% of last monthly salary per year of service (which would be paid in case of desahucio according to article 184 of Labour Code).

If dismissal is for an alleged just cause but the prior approval (“visto bueno”) of Labour Inspector is denied, then an additional amount of one monthly salary deposited by the employer is paid to the employee, in addition to severance pay and bonus for desahucio. This situation only applies if the employer requests the suspension of the employee during the prior approval (“visto bueno”) procedure.

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).

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"]

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).

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).

See remarks under severance pay.
→ Section 25(3) LL 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 follows:
- If the length of service is 1 year: one month's salary [not clear whether this 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

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)

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.

Art. 129 LC

Same as severance pay: see section 46(4) ECL, read together with section 47 ECL.

Same as severance pay: see sec. 6(1) of the Employment (Termination and Lay-off Benefits) Regulations 1980.

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).

Same as severance pay (no specific provision for economic dismissal)

Not more than 1 month's salary following any individual or collective dismissal on economic grounds. [Art. 222 (1) LC]

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.

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"

Article 67 (6) Act 50/1990: When an employer or company obtains authorization from the Ministry of Labor and Social Security for the definitive closure, total or partial, of his company, or to carry out a collective dismissal, he must pay the affected workers with the measure, the legal compensation that would have been due to the worker if the dismissal had occurred without just legal cause. If the company or the employer has a taxable net worth less than one thousand (1,000) monthly minimum wages, the amount of the compensation will be equivalent to fifty percent (50%) of the aforementioned.

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.

There is no statutory provision for redundancies.

No specific redundancy payment. Severance pay covers economic (individual and collective) dismissals (Art. L 1234-9 LC).

No specific redundancy payment - See severance pay.

See remarks under severance pay.

No statutory provision for redundancies. However, article 85 Labour Code states that it is possible to terminate an employment contracts: force majeure or fortuitous case; insolvency, bankruptcy or judicial or extrajudicial liquidation of the company; or the incapacity or death of the employer. In these cases, the General Labour Inspectorate or the Labour and Social Welfare Courts, if litigation has arisen, must discretionary graduate the amount of the company's obligations as regards for dismissal, considering the parameters set out by articles 82, 83, 84 and 85 of Labour Code, without in any case these being less than amount of two days of salary, or greater than 4 months of salary, for each worker. For this purpose, the economic capacity of the respective company must be taken into account, in harmony with the time that each contract is in force.
However, greater compensation may be imposed in favour of workers in the event that the insolvency or bankruptcy of the company has been caused in a guilty or fraudulent manner by the employer.

No specific redundancy pay. In the event of termination of employment following a suspension of an employment contract for more than 120 days for economic reasons authorized by the administration, employee are not entitled to any severance payment.
An employee under a contract of indefinite duration who is dismissed for economic reasons will be only entitled to severance pay and only if the employment was terminated by way of unjustified dismissal.

•No specific redundancy payment. Severance pay covers any dismissal for economic reasons (sec. 77 LC).

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.

No specific redundancy payment, but the "end of service remuneration" covers termination for any reason, therefore including economic reasons.
(see art. 32 LL)

Art. 436 FLA: 3 months' salary + seniority award (12 days per year of service).
Art. 439: When termination is due to new machinery or working procedures, when an agreement is not reached between the parties, the employer has to obtain the Tribunal’s authorization according to the special collective proceedings established in Art. 897 and related ones. Workers losing their jobs are entitled to a compensation:
4 months of wages + 20 days of wages per year of service or any amount agreed in work contracts –if it is higher- and the seniority award (Art. 162 FLA)

Note: The Supreme Court determined the basis for calculation of the seniority award: it cannot be below the minimum wage but cannot be either above two minimum wages. Therefore, it is capped (unlike other types of compensation established in the FLA).

In the redundancy payment table below, the seniority award is included in the calculation (otherwise it would be 3 months equally irrespective of the number of years worked.)

No specific redundancy payment. Severance pay covers economic (individual and collective) dismissals

Article 78 provides subparagraphs with situations that might be considered redundancy: h) The total closure of the company, or the definitive reduction of the tasks, prior written communication to the Administrative Labor Authority, which will give summary participation to the workers before issuing the respective resolution; i) The exhaustion of the subject matter of an extractive industry.

For the cases of subparagraphs (d), (g) and (i), articles 79 (3) and 80 (1) provides that a compensation corresponding to, once the trial period has been completed, up to five years old, with one month's salary; to the one who was more than five to ten years old, with two months of wages, and to the one who had more than ten years of seniority, with three months of wages.

In the cases corresponding subparagraph (h), if the requirements have not been met, the compensation will be paid according to Article 91 (see remarks of severance payment).

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.

No specific redundancy payment. Severance pay covers economic dismissals (see remarks under severance pay).

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.

•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.

Article 158 of Labour Law establishes 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". Although the text of the law uses the word severance, in this case it is only paid in the event of redundancy. 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.

Article 158
(1) The employer shall, prior to canceling the employment contract, pursuant to Article 179, paragraph 5, item 1) of this Act, pay to the employee a severance pay in accordance with this Article.
(2)The amount of severance pay referred to in paragraph 1 of this Article is determined by a bylaw or employment contract, provided that it may not be lower than the sum of the third of the employee's salary for each full year of work in employment relationship with the employer where he exercises the right to severance pay.
(3)When determining the amount of the severance pay, the time spent in employment relationship with the employer's predecessor in case of status change and change of employer within the meaning of Article 147 of this Act, as well as time spent at affiliates of the employer in accordance with the law, are also taken into account.

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.
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).

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.

According to the Art. 169 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.

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.

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.

Art. 54 LC

No specific redundancy payment. The employee whose contract is terminated with notice for economic reasons will be entitled to severance pay.

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.

Art. 100 ECA: upon termination of employment due to a lay-off, the employee is entitled to one month's wages.

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.

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.

▷ Note: No provisions for specific redundancy payment; severance pay covers dismissals for economic reasons. (§§ Sections 1 and 2 of the ARRÊTÉ N° 016/MTPS/SG/CJ of 26 May 1993 (Fixant les modalités d'attribution et de calcul de l’indemnité de licenciement)).

No specific redundancy payment: severance pay covers dismissals for economic reasons.
However, an end-of-contract indemnity is paid to a worker on a fixed-term contract that is not renewed. The rate is 3% of the total gross remuneration earned throughout the contract's duration.

→ Section 15.8 LC indicates that: When a fixed-term contract ends without being converted into a permanent one, the employee is entitled to an end-of-contract indemnity as a salary supplement.
▻ Indemnity Calculation and Payment
The rate for this indemnity is 3% of the total gross salary the employee received during the contract's duration. This payment is made to the employee at the same time as their final paycheck.
▻ Exceptions
This end-of-contract indemnity is not owed in the following situations:
• The employee refuses a new permanent contract for the same or a similar job with at least an equivalent salary.
• The contract is terminated early by the employee.
• The contract is terminated early due to a serious offence committed by the employee.

Redundancy pay is a fundamental entitlement for employees terminated due to workforce reduction. The formula is the same as the general severance pay calculation plus 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.
→ Section 40(4) provides that: Where a contract of employment is terminated in accordance with Section 24(4) and 29 of this Proclamation, the worker shall be paid, in addition to payments under Sub-section (1) and (2) of this Section, an amount equal to the worker’s average daily wage of the last week of service multiplied by 60.

There is no distinction between severance pay and redundancy pay.
→ Section 87 of the Labour Code 2021 entitles workers dismissed for reasons other than serious misconduct to severance pay, except during the trial period.

▷ Note: Section 88 of the Labour Code 2021 entitles workers to "compensation for services rendered" upon retirement, to the beneficiaries of a deceased worker, or to resigning workers with at least two years of service or an amicable departure.
▻ Severance pay and compensation for services rendered are not cumulative (§ 89 LC 2021).

The amount of redundancy payment is not fixed by law but is a matter of negotiation between the employer and the employee or union. Disputes can be referred to the National Labour Commission.
→ Section 65(4) LA indicates that: the amount of redundancy pay and the terms and conditions of payment are matters which are subject to negotiation between the employer or a representative of the employer on the one hand and the worker or the trade union concerned on the other.
→ Under Section 65(5), any dispute that concerns the redundancy pay and the terms and conditions of payment may be referred to the Commission by the aggrieved party for settlement, and the decision of the Commission shall subject to any other law be final.

→ Section 70 LC indicates that: Employees are entitled to the notice and dismissal compensation provided for in Sections 51 and 52 above, respectively, whether or not the employer obtains authorization for dismissal, in accordance with Sections 66, 67 and 69 above. However, in the event of dismissal in accordance with the said Sections, without the aforementioned authorization, the dismissed employees will only benefit from the damages provided for in Section 41 above by court decision if they are not reinstated in their positions while retaining their rights. (...).
→ In addition Section 41 LC provides that In the event of wrongful termination of the employment contract by one of the parties, the injured party has the right to claim damages.
The parties may not waive in advance any possible right to request damages resulting from the breach of contract, whether abusive or not. (...).
Note: Redundancy calculation shall be the same as severance pay.

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.

Severance pay + specific additional payment of 1 month's gross wages for individual and collective dismissals on economic grounds (Section 86 LC).
▷ Labour Code (LC):
→ Section 86 indicates that: A worker dismissed for economic reasons is entitled, in addition to the notice period and any potential severance pay, to a special non-taxable indemnity (redundancy), paid by the employer and equal to one (1) month of gross salary. (...).

No statutory redundancy pay.
→ Section 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".
It is unclear whether such regulations have been adopted so far.
- As a result, besides the duties imposed by Section 20 (1), where there is no collective bargaining agreement reached between any employees’ union and the employer, the courts often resort to the common law principles on redundancy.
- If there exists a collective bargaining agreement, or the company’s redundancy policy is engrafted in the employees’ individual contracts, there would be contractual expectations, and the employer will be duty-bound to meet those expectations. In practice, a worker is typically entitled to the following payments at the termination of employment in the event of a redundancy:
(a) agreed redundancy or severance payment
(b) salary in lieu of contractual notice (if applicable)
(c) accrued salary up until the effective termination date
(d) monetary value of any accrued but unutilized annual leave entitlement as at the effective termination date
(e) any accrued but unpaid incentives, awards or bonuses
Source: Nigeria: Employment and Labour Law, ICGL Online

Section L.62 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.

No statutory provision.

→ Under section 3 of the ECA 2019:
▻ “Redundancy” means the termination of a contract of employment in accordance with section 55;
▻“Redundancy payment” means the sum that an employee, whose employment has been terminated due to redundancy, is entitled to receive from the employer and any applicable third party scheme.

▷ Redundancy:
→ Under section 55. (1) An employer is considered to have terminated a contract of employment of an employee by reason of redundancy if the termination is wholly or in part due to —
(a) the employer ceasing or intending to cease to carry on the business by virtue of which the employees were engaged;
(b) the business ceasing or diminishing or expected ceasing or diminishing the requirement for the employees to carry out work of a particular kind in the place where the employees were engaged; or
(c) an adverse alteration of the employee’s conditions of service which the employee has not consented to.
(2) Where an employer intends to terminate a contract of employment by reason of redundancy, the employer shall—
(a) give notice of not less than thirty days to the employee or a representative of the employee of the impending redundancy and inform the representative on the number of employees, if more than one to be affected and the period within which the termination is intended to be carried out;
(b) afford the employee or representative of the employees an opportunity to consult on the measures to be taken to minimise the termination and the adverse effects on the employee; and
(c) not less than sixty days prior to effecting the termination, notify an authorised officer of the impending termination by reason of redundancy and submit to that authorised officer information on—
(i) the reasons for the termination by redundancy;
(ii) the number of categories of employees likely to be affected;
(iii) the period within which the redundancy is to be effected; and
(iv) the nature of the redundancy package.
(3) Subject to section 57, an employee whose contract of employment has been terminated by reason of redundancy shall—
(a) unless better terms are agreed between the employer and the employee concerned or the employee’s representatives, be entitled to a minimum redundancy payment of not less than two months’ pay for every year served and other benefits the employee is entitled to as compensation for loss of employment; and
(b) be paid the redundancy payment not later than the last day of duty of the employee, except that where an employer is unable to pay the redundancy payment on the last day of duty of the employee, the employer shall continue to pay the employee full wages until the redundancy package is paid.

▷ The exemption from redundancy is provided for under section 56 of the ECA.
→ Under section 56 (1) of ECA 2019: Subject to the Constitution, an employer who is unable to pay an employee a redundancy payment in accordance with section 55 due to the employer’s financial incapacity, may apply to the Labour Commissioner for exemption from paying the redundancy payment—
(a) as a lumpsum; or
(b) on or before the date of expiry of the notice of redundancy.
(2) An application under subsection (1) shall be accompanied with—
(a) proof of the employer’s financial incapacity to pay the redundancy payment as a lumpsum or not later than the date of the expiry of the notice of redundancy; and
(b) where the employer is unable to pay the redundancy payment as a lumpsum, the employer’s proposed payment plan specifying the proposed instalments of the redundancy payment and dates of payment.
(3) Where the Labour Commissioner considers that the employer’s proposed payment plan under subsection (2), is not reasonable, the Labour Commissioner shall propose an alternative payment plan.
(4) The Labour Commissioner shall, within thirty days of receipt
of an application under subsection (1)—
(a) grant the exemption, with or without conditions; or
(b) refuse to grant the exemption, and give reasons for the refusal.
(5) The Labour Commissioner may revoke an exemption granted under subsection (4) if—
(a) the exemption was granted on materially incorrect or misleading information;
(b) there has been a material change of circumstances since the exemption was granted; or
(c) the employer exempted fails to comply with any condition on which the exemption was granted.
(6) The Labour Commissioner shall, where the Labour Commissioner proposes to revoke an exemption granted under subsection (4) give notice, in writing, of the proposed action to the employer to which the exemption was granted and request the employer to submit to the Labour Commissioner, within seven days of the notice, any representation which the employer may wish to make on the proposed revocation.
(7) An employer who fails to comply with a condition of exemption is liable to an administrative penalty; and
(8) An employer shall, where the employer pays an employee a redundancy package in accordance with this section, submit proof of the payment to the Labour Commissioner, within seven days of the payment.
(9) This section does not apply to—
(a) an employer who ceases to carry on business by reason of bankruptcy or compulsory liquidation;
(b) a casual employee;
(c) a temporary employee;
(d) an employee engaged for a long-term and the redundancy coincides with the expiration of that term; or
(e) an employee on probation.

▶ Also see Minimum Wages and Conditions of Employment (General) Order, 2010 (S.I. No. 2 of 2011), sec. 10 and MWCE (Shop Workers) Order 2010 (S.I. No. 1 of 2011), sec. 9: redundancy payment shall be not less than 2 months for each completed year of service.

Note: No explicit references are made to severance or redundancy pay under the labour legislation. However, the Labour Amendment Act of 2023 introduced significant changes to the retrenchment process in Zimbabwe, amending Section 12C of the Labour Act [5 of 2015] to provide guidelines. In addition, the Minister of Public Service, Labour, and Social Welfare promulgated the Labour (Retrenchment) Regulations, 2024 (Statutory Instrument 191 of 2024), which came into effect on 6 December 2024. These regulations establish a framework for handling retrenchment in Zimbabwe.

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.

There is no specific provisions concerning redundancies, but in case of dismissals generated by closure of enterprises, the employer must pay severance compensation for unjustified dismissal (despido intempestivo) and the indemnity correspondent to desahucio (articles 185, 188 and 193 of Labour Code).

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.

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.