Severance Pay and Notice Periods by Country: What It Costs to End Employment
What an employer owes by law to end a permanent contract in 100 countries, at 1, 5 and 10 years of service. We read the labour code for each country, recorded notice, severance, probation and when severance applies, and costed every exit on the same salary.
- Data reviewed
- 26 Oct 2026
- Coverage
- 100 countries
- Research
- Dhiraj Das, Manjuri Dutta
14.7 weeks
median statutory cost of ending a contract at 5 years’ service
Original data21 of 97
countries owe no statutory severance for a no-fault dismissal
Original data4 weeks
median statutory notice for a worker with one year of service
World Bank B-READY 2025, 101 economies
36
countries have ILO Convention 158 on dismissal in force
ILO NORMLEX, Oct 2026
01 · The tracker Original research
Ending a five-year contract costs 14.7 weeks of pay in the median country
Each row shows the statutory minimum an employer owes to dismiss a permanent white-collar employee for an economic reason, at 1, 5 and 10 years of service. Open a row for the formula, the cap, the law and the dollar cost.
How much severance is required by law? Across the 97 countries with verified rules, the median employer owes 6.5 weeks of pay at one year of service, 14.7 weeks at five years and 21.6 weeks at ten, counting notice and severance together. 21 countries require no severance at all for a no-fault dismissal.
37
owe severance on any no-fault dismissal
30
owe it only when the job is made redundant
9
owe an end-of-service payment on every exit
21
have no statutory severance
36
cap severance by years or salary
Severance and notice tracker
100 countries · statutory minimums · reviewed 26 Oct 2026
Showing 12 of 100 countries
| Country | Notice, weeks 1 / 5 / 10 yrs | Severance, weeks 1 / 5 / 10 yrs | Severance owed | Max probation, months | |
|---|---|---|---|---|---|
| AlbaniaEurope | 4.3/8.7/13 | 0/10.8/21.7 | 19.5 | Any no-fault dismissal | 3 |
| ArgentinaAmericas | 4.3/4.3/8.7 | 2.9/14.5/29 | 18.8 | Any no-fault dismissal | 6 |
| ArmeniaAsia & Oceania | 8.7/8.7/8.7 | 4.3/4.3/4.3 | 13 | Redundancy only | 3 |
| AustraliaAsia & Oceania | 1/3/4 | 4/10/12 | 13 | Redundancy only | 0 |
| AustriaEurope | 6/13/13 | 0/0/0 | 13 | None by statute | 1 |
| AzerbaijanAsia & Oceania | 4/6/9 | 6.1/7.4/8.7 | 13.4 | Redundancy only | 3 |
| BahrainMiddle East & Africa | 4.3/4.3/4.3 | 2.2/8.6/17.1 | 12.9 | Redundancy only | 3 |
| BangladeshAsia & Oceania | 4.3/4.3/4.3 | 4.3/21.4/42.9 | 25.7 | Any no-fault dismissal | 6 |
| BelgiumEurope | 8/18/33 | 0/0/0 | 18 | None by statute | 0 |
| BoliviaAmericas | 12.9/12.9/12.9 | 4.3/21.7/43.3 | 34.6 | Any exit, incl. resignation | 3 |
| BrazilAmericas | 4.7/6.4/8.6 | 1.7/8.3/16.6 | 14.7 | Any no-fault dismissal | 3 |
| BulgariaEurope | 4.3/4.3/4.3 | 4.3/4.3/4.3 | 8.6 | Redundancy only | 6 |
| CambodiaAsia & Oceania | 2.1/4.3/8.7 | 0/0/0 | 4.3 | Any exit, incl. resignation | 3 |
| CanadaAmericas | 2/5/8 | 0/5/10 | 10 | Any no-fault dismissal | 0 |
| ChileAmericas | 4.3/4.3/4.3 | 3.4/17.1/34.2 | 21.4 | Any no-fault dismissal | 0 |
| ChinaAsia & Oceania | 4.3/4.3/4.3 | 4.3/21.7/43.3 | 26 | Any no-fault dismissal | 6 |
| ColombiaAmericas | 0/0/0 | 4.3/15.9/30.3 | 15.9 | Any no-fault dismissal | 2 |
| Costa RicaAmericas | 4.3/4.3/4.3 | 2.8/15.3/24.8 | 19.6 | Any no-fault dismissal | 3 |
| CroatiaEurope | 4.3/8.7/10.8 | 0/7.2/14.4 | 15.9 | Any no-fault dismissal | 6 |
| CyprusEurope | 2/7/8 | 0/0/0 | 7 | None by statute | 24 |
| Czech RepublicEurope | 8.7/8.7/8.7 | 8.7/13/13 | 21.7 | Redundancy only | 4 |
| DenmarkEurope | 13/17.3/26 | 0/0/0 | 17.3 | Any no-fault dismissal | 3 |
| Dominican RepublicAmericas | 5.6/5.6/5.6 | 4.2/23/46 | 28.6 | Any no-fault dismissal | 3 |
| EcuadorAmericas | 0/0/0 | 14.1/27.1/54.1 | 27.1 | Any no-fault dismissal | 3 |
| EgyptMiddle East & Africa | 13/13/13 | 4.3/21.7/54.1 | 34.7 | Redundancy only | 3 |
| El SalvadorAmericas | 0/0/0 | 1.4/7.1/14.2 | 7.1 | Any no-fault dismissal | 1 |
| EstoniaEurope | 4.3/8.6/12.9 | 4.3/4.3/4.3 | 12.9 | Redundancy only | 4 |
| EthiopiaMiddle East & Africa | 4.3/8.7/13 | 4.3/10/17.1 | 18.7 | Unverified | 2.8 |
| FinlandEurope | 2/8.7/17.3 | 0/0/0 | 8.7 | None by statute | 6 |
| FranceEurope | 4.3/8.7/8.7 | 1.1/5.4/10.8 | 14.1 | Any no-fault dismissal | 8 |
| GeorgiaAsia & Oceania | 4.3/4.3/4.3 | 4.3/4.3/4.3 | 8.6 | Any no-fault dismissal | 6 |
| GermanyEurope | 4/8.7/17.3 | 0/0/0 | 8.7 | None by statute | 6 |
| GhanaMiddle East & Africa | 2/4.3/4.3 | 0/0/0 | 4.3 | None by statute | 6 |
| GreeceEurope | 4.3/13/17.3 | 5.1/7.6/15.2 | 20.6 | Any no-fault dismissal | 12 |
| GuatemalaAmericas | 0/0/0 | 4.3/21.7/43.3 | 21.7 | Any no-fault dismissal | 2 |
| Hong KongAsia & Oceania | 4.3/4.3/4.3 | 0/8.3/16.7 | 12.6 | Redundancy only | 0 |
| HungaryEurope | 4.3/6.4/7.9 | 0/8.7/13 | 15.1 | Any no-fault dismissal | 3 |
| IcelandEurope | 4.3/13/13 | 0/0/0 | 13 | None by statute | 0 |
| IndiaAsia & Oceania | 4.3/4.3/4.3 | 4.3/25.4/43.3 | 29.7 | Redundancy only | 0 |
| IndonesiaAsia & Oceania | 2.8/2.8/2.8 | 8.7/34.6/56.3 | 37.4 | Any no-fault dismissal | 3 |
| IrelandEurope | 1/4/6 | 0/6.4/12.2 | 10.4 | Redundancy only | 6 |
| IsraelMiddle East & Africa | 4.3/4.3/4.3 | 2.8/7.6/13.7 | 11.9 | Any no-fault dismissal | 0 |
| ItalyEurope | 0/0/0 | 3.9/19.3/38.5 | 19.3 | Any exit, incl. resignation | 6 |
| JamaicaAmericas | 2/4/6 | 0/10/20 | 14 | Redundancy only | 0 |
| JapanAsia & Oceania | 4.3/4.3/4.3 | 0/0/0 | 4.3 | None by statute | 0 |
| JordanMiddle East & Africa | 4.3/4.3/4.3 | 0/0/0 | 4.3 | None by statute | 3 |
| KazakhstanAsia & Oceania | 4.3/4.3/4.3 | 4.3/4.3/4.3 | 8.6 | Redundancy only | 3 |
| KenyaMiddle East & Africa | 4.3/4.3/4.3 | 2.1/10.7/21.4 | 15 | Redundancy only | 12 |
| KuwaitMiddle East & Africa | 13/13/13 | 2.1/10.7/32.4 | 23.7 | Any exit, incl. resignation | 4.6 |
| LatviaEurope | 4.3/4.3/4.3 | 4.3/8.7/13 | 13 | Redundancy only | 3 |
| LebanonMiddle East & Africa | 4.3/8.7/13 | 0/0/0 | 8.7 | Unverified | 3 |
| LithuaniaEurope | 4.3/4.3/4.3 | 8.7/8.7/8.7 | 13 | Redundancy only | 3 |
| LuxembourgEurope | 8.7/17.3/26 | 0/4.3/8.7 | 21.6 | Any no-fault dismissal | 6 |
| MalaysiaAsia & Oceania | 4/8/8 | 0/0/0 | 8 | None by statute | 0 |
| MaltaEurope | 2/8/11 | 0/0/0 | 8 | None by statute | 6 |
| MauritiusMiddle East & Africa | 4.3/4.3/4.3 | 0/0/0 | 4.3 | None by statute | – |
| MexicoAmericas | 0/0/0 | 16.3/29.2/45.5 | 29.2 | Any no-fault dismissal | 1 |
| MongoliaAsia & Oceania | 4.3/4.3/4.3 | 4.3/13/17.3 | 17.3 | Redundancy only | 3 |
| MoroccoMiddle East & Africa | 8.7/8.7/13 | 2.2/10.9/27.3 | 19.6 | Any no-fault dismissal | 6 |
| NepalAsia & Oceania | 4.3/4.3/4.3 | 4.3/21.7/43.3 | 26 | Redundancy only | 6 |
| NetherlandsEurope | 4.3/8.7/13 | 1.4/7.2/14.4 | 15.9 | Any no-fault dismissal | 2 |
| New ZealandAsia & Oceania | 0/0/0 | 0/0/0 | 0 | None by statute | 3 |
| NigeriaMiddle East & Africa | 1/4.3/4.3 | 0/0/0 | 4.3 | None by statute | – |
| NorwayEurope | 4.3/8.7/13 | 0/0/0 | 8.7 | None by statute | 6 |
| OmanMiddle East & Africa | 13/13/13 | 4.3/21.7/43.3 | 34.7 | Any exit, incl. resignation | 3 |
| PakistanAsia & Oceania | 4.3/4.3/4.3 | 4.3/21.4/42.9 | 25.7 | Unverified | 3 |
| PanamaAmericas | 4.3/4.3/4.3 | 3.4/17/34 | 21.3 | Any no-fault dismissal | 3 |
| ParaguayAmericas | 4.3/6.4/8.6 | 2.1/10.7/21.4 | 17.1 | Any no-fault dismissal | 2 |
| PeruAmericas | 0/0/0 | 6.5/32.5/52 | 32.5 | Any no-fault dismissal | 3 |
| PhilippinesAsia & Oceania | 4.3/4.3/4.3 | 4.3/21.7/43.3 | 26 | Redundancy only | 6 |
| PolandEurope | 4.3/13/13 | 4.3/8.7/13 | 21.7 | Redundancy only | 3 |
| PortugalEurope | 4.3/8.6/10.7 | 2/10.1/20.2 | 18.7 | Redundancy only | 3 |
| QatarMiddle East & Africa | 4.3/8.7/8.7 | 3/15/30 | 23.7 | Any exit, incl. resignation | 6 |
| RomaniaEurope | 4/4/4 | 0/0/0 | 4 | None by statute | 3 |
| RwandaMiddle East & Africa | 4.3/4.3/4.3 | 8.7/13/17.3 | 17.3 | Redundancy only | 6 |
| Saudi ArabiaMiddle East & Africa | 8.6/8.6/8.6 | 2.2/10.8/32.5 | 19.4 | Any exit, incl. resignation | 6 |
| SerbiaEurope | 0/0/0 | 1.4/7.2/14.4 | 7.2 | Redundancy only | 6 |
| SingaporeAsia & Oceania | 1/4/4 | 0/0/0 | 4 | None by statute | 0 |
| SlovakiaEurope | 8.7/13/13 | 0/8.7/13 | 21.7 | Redundancy only | 3 |
| SloveniaEurope | 4.3/5.4/6.9 | 0.9/4.3/8.7 | 9.7 | Any no-fault dismissal | 6 |
| South AfricaMiddle East & Africa | 2/4/4 | 1/5/10 | 9 | Redundancy only | 0 |
| South KoreaAsia & Oceania | 4.3/4.3/4.3 | 4.3/21.4/42.9 | 25.7 | Any exit, incl. resignation | 0 |
| SpainEurope | 2.1/2.1/2.1 | 2.9/14.3/28.6 | 16.4 | Redundancy only | 6 |
| Sri LankaAsia & Oceania | 4.3/4.3/4.3 | 7.2/18/28.9 | 22.3 | Any no-fault dismissal | 0 |
| SwedenEurope | 4.3/13/26 | 0/0/0 | 13 | None by statute | 6 |
| SwitzerlandEurope | 8.7/8.7/13 | 0/0/0 | 8.7 | None by statute | 3 |
| TaiwanAsia & Oceania | 2.9/4.3/4.3 | 2.2/10.8/21.7 | 15.1 | Any no-fault dismissal | 0 |
| TanzaniaMiddle East & Africa | 4/4/4 | 1/5/10 | 9 | Any no-fault dismissal | 12 |
| ThailandAsia & Oceania | 4.3/4.3/4.3 | 12.9/25.7/42.9 | 30 | Any no-fault dismissal | 0 |
| TunisiaMiddle East & Africa | 4.3/4.3/4.3 | 2/10/13 | 14.3 | Any no-fault dismissal | 6 |
| TurkeyEurope | 4/8/8 | 1.3/6.4/12.9 | 14.4 | Any no-fault dismissal | 2 |
| UgandaMiddle East & Africa | 4.3/8.7/13 | 0/0/0 | 8.7 | None by statute | 12 |
| UkraineEurope | 8.7/8.7/8.7 | 4.3/4.3/4.3 | 13 | Redundancy only | 3 |
| United Arab EmiratesMiddle East & Africa | 4.3/4.3/4.3 | 3/15/36.4 | 19.3 | Any exit, incl. resignation | 6 |
| United KingdomEurope | 1/5/10 | 0/4.4/8.7 | 9.4 | Redundancy only | 0 |
| United StatesAmericas | 0/0/0 | 0/0/0 | 0 | None by statute | 0 |
| UruguayAmericas | 0/0/0 | 4.3/21.7/26 | 21.7 | Any no-fault dismissal | 0 |
| UzbekistanAsia & Oceania | 8.7/8.7/8.7 | 2.2/4.3/6.5 | 13 | Any no-fault dismissal | 3 |
| VietnamAsia & Oceania | 4.3/4.3/4.3 | 8.7/8.7/8.7 | 13 | Redundancy only | 2 |
| ZambiaMiddle East & Africa | 4.3/4.3/4.3 | 8.7/43.3/86.6 | 47.6 | Redundancy only | 3 |
Weeks of pay for a permanent employee dismissed for an economic reason. Open a row for the law and source.
What is changing
- 6 Apr 2026In forceUnited Kingdom
Maximum protective award for collective redundancy consultation failures doubled to 180 days’ pay.
- 1 Jun 2026In forceBelgium
Employer notice capped at 52 weeks for contracts starting from this date.
- Jul 2026In forceArgentina
Ley 27.802 changes the severance base. A constitutional challenge is still pending.
- 6 Oct 2026Passed, not signedIndonesia
New employment protection law passed by parliament. It takes effect a year after it is signed.
- 1 Jan 2027ScheduledUnited Kingdom
Unfair dismissal protection after 6 months’ service instead of 2 years, and the compensation cap removed.
- 19 Jul 2027ScheduledOman
Savings scheme due to replace end-of-service gratuity for expatriate employees.
Seniority pay of 15 days' wages per full year of service once the employee has 3+ years; notice 1 month (under 2 years), 2 months (2-5 years), 3 months (over 5 years).
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $24,176 incl. employer contributions on notice pay
- Law
- Labour Code (Law 7961/1995 as amended by Law 136/2015), arts. 143, 144, 145
Dismissal without cause costs 1 month's salary per year of service (or fraction over 3 months), on a salary base capped at 3x the collective-agreement average but never below 67% of actual pay, plus 1 month's notice (2 months after 5 years).
- Severance cap
- Yes: salary base capped at 3x the average salary of the applicable collective agreement, but not below 67% of the employee's normal monthly pay
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $23,151 incl. employer contributions on notice pay
- Law
- Ley de Contrato de Trabajo 20.744, arts. 92 bis, 231, 232, 245, as amended by Ley 27.742 (2024) and Ley 27.802 (2026)
Two months' notice and severance of one month's average salary on dismissal for staff reduction or liquidation.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $15,000 incl. employer contributions on notice pay
- Law
- Labour Code of the Republic of Armenia, arts. 115 and 129
Under the National Employment Standards, notice is 1-4 weeks by service (plus 1 week if over 45 with 2+ years), and redundancy pay runs from 4 weeks (1 year) up to 16 weeks (9-10 years), then 12 weeks from 10 years; employers with fewer than 15 employees are exempt from redundancy pay.
- Severance cap
- Yes: scale maximum 16 weeks (9-10 years); falls to 12 weeks at 10+ years
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $15,415 incl. employer contributions on notice pay
- Law
- Fair Work Act 2009 (Cth) ss. 117, 119, 121, 382-389
No employer-paid statutory severance for staff hired since 2003 (the employer pays 1.53% of pay into a severance fund instead); employer notice is 6 weeks in the first 2 years, 2 months from year 3, 3 months from year 6, to quarter-end unless the contract allows the 15th or month-end.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $19,410 incl. employer contributions on notice pay
- Law
- Angestelltengesetz (AngG) s.19 (probation), s.20 (notice); ABGB s.1159; BMSVG (severance fund); ArbVG s.105
On staff reduction or liquidation, severance of 1 month's average salary (under 1 year), 1.4 (1-5 years), 1.7 (5-10 years) or 2.0 (over 10 years); notice of 2, 4, 6 or 9 weeks by service.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $16,985 incl. employer contributions on notice pay
- Law
- Labour Code of the Republic of Azerbaijan (1999), arts. 51, 70(b), 77
30 days' notice; redundancy (closure or downsizing) pays half the Art. 111 compensation of 2 days' wages per month of service (min 1 month, max 12 months before halving).
- Severance cap
- Yes: Art. 111 compensation max 12 months (6 months for Art. 110 redundancy at half)
- Owed when the employee resigns
- Yes
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $15,480 incl. employer contributions on notice pay
- Law
- Labour Law for the Private Sector, Law No. 36/2012 (as amended, incl. Law 37/2015 on Art. 110), Arts. 21, 99, 110, 111
Retrenchment of a worker with 1+ year: one month's written notice (or pay) plus 30 days' wages per completed year or gratuity if higher.
- Severance cap
- No
- Owed when the employee resigns
- Partial
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $29,654 incl. employer contributions on notice pay
- Law
- Bangladesh Labour Act 2006 (as amended 2013, 2018), ss. 4, 20, 26, 27
No statutory severance; employer notice for contracts started from 2014 follows a seniority table: 8 weeks at 1 year, 18 weeks at 5 years, 33 weeks at 10 years (or pay in lieu).
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $28,412 incl. employer contributions on notice pay
- Law
- Employment Contracts Act of 3 July 1978, art. 37/2 (notice); CAO/CCT No. 109 (dismissal reasons)
Indemnity of 1 month's pay (average of last 3 months) per year of service is owed on any exit after 90 days, including resignation; a dismissed worker not given 90 days' notice also gets desahucio of 3 months' pay.
- Severance cap
- No
- Owed when the employee resigns
- Yes
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $42,409 incl. employer contributions on notice pay
- Law
- Ley General del Trabajo (1942) arts. 12, 13, 19; Decreto Reglamentario 224 art. 13; DS 28699 (2006); DS 0110 (2009)
Notice of 30 days plus 3 days per completed year of service (max 90 days); on dismissal without just cause the employer pays a fine of 40% of the employee's FGTS balance.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $19,605 incl. employer contributions on notice pay
- Law
- CLT arts. 445, 477, 487; Lei 12.506/2011 art. 1; Lei 8.036/1990 art. 18 para. 1
30 days' notice for indefinite contracts (can be agreed up to 3 months), plus compensation of up to 1 month's gross pay while the employee remains unemployed after a redundancy-type dismissal.
- Severance cap
- Yes: 1 month's gross pay
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $10,861 incl. employer contributions on notice pay
- Law
- Kodeks na truda (Labour Code) arts. 70, 222(1), 326, 328
Seniority indemnity of 15 days' wages per year is paid during employment (7.5 days each June and December), so little is left to pay at exit; notice is 15 days (6m-2y), 1 month (2-5y), 2 months (5-10y), 3 months (10y+).
- Severance cap
- No
- Owed when the employee resigns
- Partial
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $5,130 incl. employer contributions on notice pay
- Law
- Labour Law 1997 as amended 2018, arts. 68, 74, 75, 89; Prakas No. 443/2018 on seniority indemnity
Ontario ESA: notice from 1 week (3 months' service) up to 8 weeks (8+ years); severance of 1 week per year of service (pro-rated months) after 5 years if the employer's payroll is at least CAD 2.5 million, capped at 26 weeks.
- Severance cap
- Yes: 26 weeks
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $11,942 incl. employer contributions on notice pay
- Law
- Employment Standards Act, 2000 (Ontario), ss. 54-58 (notice), 63-65 (severance)
Dismissal for business needs requires 30 days' notice (or pay in lieu) and severance of 30 days' pay per year of service (fraction over 6 months counts), capped at 11 years and a 90 UF monthly salary base.
- Severance cap
- Yes: 330 days (11 years) and salary base capped at 90 UF/month
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $24,955 incl. employer contributions on notice pay
- Law
- Codigo del Trabajo, arts. 161, 162, 163, 172
One month's average pay per year of service (6-12 months counts as a full year), plus 30 days' notice or one month's pay in lieu.
- Severance cap
- Yes: monthly base capped at 3x local average monthly wage, and then max 12 years
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $31,707 incl. employer contributions on notice pay
- Law
- Labour Contract Law of the PRC (2007, amended 2012), arts. 19, 40, 41, 46, 47, 87
Dismissal without just cause of an indefinite-term employee earning under 10 minimum wages costs 30 days' salary for the first year plus 20 days for each further year (pro-rated); at 10+ minimum wages it is 20 days plus 15 days per further year.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $18,346 incl. employer contributions on notice pay
- Law
- Codigo Sustantivo del Trabajo, arts. 64 (as amended by Ley 789/2002 art. 28), 76-80; Ley 2466 de 2025
Dismissal without cause requires 1 month's notice after a year's service and cesantia of 19.5 to 22 days' pay per year depending on total seniority, counting at most the last 8 years.
- Severance cap
- Yes: last 8 years of service
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $23,940 incl. employer contributions on notice pay
- Law
- Codigo de Trabajo, arts. 28, 29 (as amended by Ley de Proteccion al Trabajador 7983, 2000)
Notice of 1 month at 1 year, 2 months at 5 years and 2.5 months at 10 years; severance of at least one third of average monthly pay per year of service after 2 years, capped at 6 months' pay.
- Severance cap
- Yes: 6 months' average pay (unless agreed otherwise)
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $20,002 incl. employer contributions on notice pay
- Law
- Zakon o radu (NN 93/14 to 64/23) arts. 53, 122, 126
Notice of 2 weeks after 1 year, 7 weeks after 5 years and 8 weeks after 10 years; redundancy pay (after 2 years) is paid by the state Redundancy Fund, not by the employer.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $9,329 incl. employer contributions on notice pay
- Law
- Termination of Employment Law 1967 (Law 24/1967) as amended, ss. 3, 5, 9, 16
Two months' notice regardless of tenure, plus severance of 1 month's average earnings under 1 year, 2 months for 1-2 years and 3 months from 2 years.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $28,431 incl. employer contributions on notice pay
- Law
- Zakonik prace (Act No. 262/2006 Coll.) pars. 35, 51, 52(c), 67, as amended by Act 120/2025
Employer notice rises from 3 months (after 6 months' service) to 6 months (after about 9 years); statutory severance of 1 month's pay applies only after 12 years (3 months after 17 years).
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $21,798 incl. employer contributions on notice pay
- Law
- Funktionærloven (LBK nr. 1002 af 24/08/2017, as last amended by lov nr. 715 af 20/06/2025), §§ 2, 2a, 2b
An employer may end an indefinite contract without cause (desahucio) with 28 days' notice (or pay in lieu) after 1 year, plus cesantía of 21 days' wages per year for 1-5 years' service and 23 days per year for every year once service exceeds 5 years.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $34,008 incl. employer contributions on notice pay
- Law
- Código de Trabajo (Ley 16-92), arts. 75, 76, 80
Dismissal without cause (despido intempestivo) costs 3 months' pay up to 3 years' service, then 1 month per year (max 25 months), plus a desahucio bonus of 25% of a month's pay per year of service.
- Severance cap
- Yes: 25 months' pay (art. 188 indemnity only)
- Owed when the employee resigns
- Yes
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $31,269 incl. employer contributions on notice pay
- Law
- Código del Trabajo (Codificación 2005, as amended), arts. 15, 185, 188
For economic dismissal, one month's wage per year for the first 5 years and 1.5 months' per year after; 3 months' notice on open-ended contracts.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $42,858 incl. employer contributions on notice pay
- Law
- Labour Law No. 14 of 2025, arts. 156, 164-165
Dismissal without just cause costs 30 days' basic pay per year of service (pro rata, minimum 15 days' pay), with the monthly salary base capped at 4 times the sector minimum wage.
- Severance cap
- Yes: salary base capped at 4x the sector minimum wage (USD 1635.20/month for commerce & services)
- Owed when the employee resigns
- Partial
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $8,192 incl. employer contributions on notice pay
- Law
- Código de Trabajo (Decreto 15/1972) arts. 28, 58; Ley Reguladora de la Prestación Económica por Renuncia Voluntaria (2013); Decreto Ejecutivo No. 11 (2025) minimum wage
Employer notice is 15, 30, 60 or 90 calendar days depending on service; on economic-ground termination the employer pays a flat 1 month's average wage.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $18,239 incl. employer contributions on notice pay
- Law
- Employment Contracts Act (Töölepingu seadus, RT I 2009, 5, 35), §§ 86, 89, 97, 100
30 days' average wage for the first year plus one-third of that (10 days) for each further year, capped at 12 months' wages; notice runs from 1 to 3 months by service.
We could not confirm this row against the official text on the review date, so it is left out of every count on this page.
- Severance cap
- Yes: 12 months' wages
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $22,681 incl. employer contributions on notice pay
- Law
- Labour Proclamation No. 1156/2019, Art 11, 35, 39, 40
Employer notice is 14 days up to 1 year of service, then 1, 2, 4 or 6 months at the 4-, 8- and 12-year steps; there is no statutory severance pay.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $12,076 incl. employer contributions on notice pay
- Law
- Employment Contracts Act (Työsopimuslaki 55/2001), ch. 1 s. 4; ch. 6 s. 3; ch. 7 s. 3
After 8 months' service, a legal dismissal indemnity of 1/4 month's pay per year for the first 10 years and 1/3 month per year after that; employer notice is 1 month from 6 months' service and 2 months from 2 years.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $20,596 incl. employer contributions on notice pay
- Law
- Code du travail, arts. L1221-19 to L1221-21 (probation), L1234-1 (notice), L1234-9 and R1234-2 (indemnity), L1232-1 (real and serious cause)
Employer gives 30 calendar days' notice plus at least one month's pay as severance (or 3 days' notice plus at least two months' pay); not service-linked.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $10,022 incl. employer contributions on notice pay
- Law
- Labour Code of Georgia (Organic Law No. 4113-RS), arts. 17, 47(1)(a), 48
No mandatory statutory severance; employer notice is 4 weeks (to the 15th or month-end) rising to 2 months after 5 years and 4 months after 10 years, to month-end.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $12,438 incl. employer contributions on notice pay
- Law
- BGB s.622 (notice, probation); KSchG s.1 (social justification), s.1a (optional severance)
Redundancy pay is required but its amount is negotiated between employer and worker or union (no statutory formula); notice is 2 weeks under 3 years and 1 month for 3 years or more.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $5,607 incl. employer contributions on notice pay
- Law
- Labour Act 2003 (Act 651), s17, s62-65; Labour Regulations 2007 (L.I. 1833)
Employer may give notice (1 month at 1-2 years, 3 at 5-10, 4 at 10+) and then pays half the dismissal compensation, or dismiss without notice and pay full compensation (2 months' pay at 1-4 years, 3 at 4-6, 6 at 10 years).
- Severance cap
- Yes: 12 months' pay (for service after 12 Nov 2012)
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $27,114 incl. employer contributions on notice pay
- Law
- Law 2112/1920 and Law 3198/1955 as amended by Law 4093/2012; Law 4808/2021; Law 5053/2023; Law 5239/2025
An employee dismissed without just cause after probation gets 1 month's pay per year of service (pro rata), based on average pay over the last 6 months; no statutory employer notice.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $25,038 incl. employer contributions on notice pay
- Law
- Código de Trabajo (Decreto 1441) arts. 81, 82, 83; Decreto 76-78; Decreto 42-92; Constitución art. 102(o)
Severance of 2/3 of the last month's wages per year of service after 24 months (wage capped at HK$22,500, total capped at HK$390,000); one month's notice if the contract is silent.
- Severance cap
- Yes: monthly wage capped at HK$22,500 (HK$15,000 per year of service), total HK$390,000
- Owed when the employee resigns
- Partial
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $14,633 incl. employer contributions on notice pay
- Law
- Employment Ordinance (Cap. 57), ss. 6, 31B-31G, 31R-31V, Part VIA
Notice is 30 days plus 5 days after 3 years, 15 after 5, 20 after 8 and 25 after 10 years; severance of 1 month's absence fee after 3 years, 2 after 5, 3 after 10 years.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $18,383 incl. employer contributions on notice pay
- Law
- Munka Torvenykonyve (Act I of 2012) pars. 45, 66, 69, 77
Statute gives 1 month's notice after 1 year, 2 months after 3 years and 3 months after 5 years of service, always to the end of a month; there is no statutory severance or probation.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $17,880 incl. employer contributions on notice pay
- Law
- Act on workers' rights to notice and wages (Lög nr. 19/1979 um rétt verkafólks til uppsagnarfrests), art. 1 (lagasafn 157c, 1 Sep 2026)
Retrenchment: 1 month's notice (or pay) plus 15 days' pay per completed year, plus 15 days' wages to the Worker Re-skilling Fund; gratuity of 15/26 of monthly wage per year after 5 years (cap INR 20 lakh) is also payable.
- Severance cap
- Yes: gratuity capped at INR 20 lakh (binds at 10y for USD 60k); retrenchment compensation uncapped
- Owed when the employee resigns
- Partial
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $34,289 incl. employer contributions on notice pay
- Law
- Code on Industrial Relations 2020, s.70 and s.83 (Re-skilling Fund); Industrial Relations (Central) Rules 2026; Code on Social Security 2020, s.53 (gratuity)
Efficiency dismissal to prevent losses: 1x severance (2 months at 1y, 6 at 5y, 9 at 8y+) plus 1x long-service pay (2 months at 3-6y, 4 at 9-12y) plus compensation of rights; 14 working days' written notice of intent.
- Severance cap
- Yes: scale tops at 9 months severance + 10 months long-service pay (24+ yrs)
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $43,328 incl. employer contributions on notice pay
- Law
- Law 13/2003 as amended by Law 6/2023, art. 156; GR 35/2021 arts. 37, 40, 43
After 2 years' service, statutory redundancy pay of 2 weeks' pay per year of service plus 1 bonus week, with week's pay capped at EUR 600; employer notice is 1 week up to 2 years, 2 weeks for 2-5 years, 4 weeks for 5-10 years, 6 weeks for 10-15 years.
- Severance cap
- Yes: week's pay capped at EUR 600
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $12,586 incl. employer contributions on notice pay
- Law
- Redundancy Payments Acts 1967-2014 (Sch. 3); Minimum Notice and Terms of Employment Act 1973, s.4; EU (Transparent and Predictable Working Conditions) Regulations 2022 (probation); Unfair Dismissals Acts 1977-2015
Severance of one month's latest salary per year of service after 1 year, largely pre-funded through pension severance contributions; notice of one month after the first year.
- Severance cap
- No
- Owed when the employee resigns
- Partial
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $14,281 incl. employer contributions on notice pay
- Law
- Severance Pay Law 5723-1963, s.1, s.14; Prior Notice for Dismissal and Resignation Law 5761-2001; Extension Order on Mandatory Pension (2008, as amended)
TFR (end-of-service allowance) of about one year's pay divided by 13.5 per year of service, revalued yearly and owed on any exit; there is no statutory notice period, which is set by the collective agreement (CCNL).
- Severance cap
- No
- Owed when the employee resigns
- Yes
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $22,269 incl. employer contributions on notice pay
- Law
- Civil Code arts. 2118 (notice), 2120 (TFR); Law 604/1966; D.Lgs. 104/2022 art. 7; Law 199/2025 art. 1(203)
Notice is 2 weeks under 5 years' service, 4 weeks for 5-10, 6 weeks for 10-15; redundancy pay is owed only after 104 weeks' service at 2 weeks' pay per year up to 10 years and 3 weeks per year after that.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $16,731 incl. employer contributions on notice pay
- Law
- Employment (Termination and Redundancy Payments) Act 1974, s. 3 and s. 5; Employment (Termination and Redundancy Payments) Regulations; Labour Relations and Industrial Disputes Act
No statutory severance; the employer must give 30 days' notice or pay in lieu, and the dismissal must be objectively reasonable.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $5,681 incl. employer contributions on notice pay
- Law
- Labor Standards Act (Act No. 49 of 1947), arts. 20-21; Labor Contract Act (Act No. 128 of 2007), art. 16
No statutory severance for employees covered by Social Security (all private employers must register staff); one month's notice; arbitrary dismissal compensation 3-6 months.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $5,671 incl. employer contributions on notice pay
- Law
- Labour Law No. 8 of 1996 (as amended 2019, 2023), arts. 23, 25, 31, 32, 35
One month's written notice and one month's average salary as compensation on dismissal for staff reduction (two months' pay if the dismissal is for an economic downturn).
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $10,692 incl. employer contributions on notice pay
- Law
- Labour Code of the Republic of Kazakhstan No. 414-V (2015), arts. 36, 52, 131
15 days' pay per completed year of service on redundancy, plus 1 month's notice or 1 month's pay in lieu.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $17,605 incl. employer contributions on notice pay
- Law
- Employment Act 2007 (No. 11 of 2007), s35, s40, s42, s43, s45
15 days' pay per year for the first 5 years and one month's pay per year after, capped at 18 months' pay; 3 months' notice for monthly-paid staff.
- Severance cap
- Yes: 1.5 years' remuneration
- Owed when the employee resigns
- Partial
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $29,071 incl. employer contributions on notice pay
- Law
- Private Sector Labour Law No. 6 of 2010, arts. 32, 44, 51, 53
Employer gives 1 month's notice for staff reduction and pays severance of 1 month's pay under 5 years, 2 months for 5-10 years, 3 months for 10-20 years and 4 months for 20+ years.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $16,171 incl. employer contributions on notice pay
- Law
- Labour Law (Darba likums), ss. 46, 101(1)(9), 103, 112
Notice of 1 to 4 months by service; end-of-service indemnity is paid by the NSSF fund (employer tops up any shortfall), not as a direct employer severance.
We could not confirm this row against the official text on the review date, so it is left out of every count on this page.
- Severance cap
- No
- Owed when the employee resigns
- Partial
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $12,397 incl. employer contributions on notice pay
- Law
- Labour Code of 23 Sept 1946, art. 50 (as amended by Law 207/2000); Social Security Code, EOS branch
Employer gives 1 month's notice (2 weeks under 1 year) for no-fault dismissal and pays 2 months' average pay as severance once service is 1 year or more.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $15,089 incl. employer contributions on notice pay
- Law
- Labour Code (Darbo kodeksas, Law No. XII-2603), arts. 36, 57, 59
Employer notice is 2 months under 5 years, 4 months for 5-10 years and 6 months for 10+ years; severance is 1 month's pay after 5 years and 2 months after 10 years, rising to 12 months at 30 years.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $27,518 incl. employer contributions on notice pay
- Law
- Labour Code (Code du travail), arts. L.121-5, L.124-3, L.124-5, L.124-7
Notice of 4 weeks (under 2 years), 6 weeks (2-5 years) or 8 weeks (5+ years); statutory termination benefits apply only to employees earning RM4,000 a month or less.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $10,809 incl. employer contributions on notice pay
- Law
- Employment Act 1955 (Act 265) as amended by Act A1651, s. 12, s. 60J, First Schedule para 1A; Employment (Termination and Lay-Off Benefits) Regulations 1980; Industrial Relations Act 1967, s. 20
No statutory severance; notice runs from 1 week (1-6 months' service) to 8 weeks (4-7 years), plus 1 week per extra year up to 12 weeks.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $10,154 incl. employer contributions on notice pay
- Law
- Employment and Industrial Relations Act (Cap. 452), art. 36
No severance on a lawful (justified) reduction of workforce, only 30 days' wages in lieu of notice; severance of 3 months' remuneration per year applies only if the termination is found unjustified.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $5,433 incl. employer contributions on notice pay
- Law
- Workers' Rights Act 2019 (Act No. 20 of 2019), s63, s64, s69-72, Part VIII (PRGF)
Dismissal without a legal just cause costs 3 months' salary plus 20 days' salary per year of service, plus a seniority premium of 12 days per year (salary capped at twice the minimum wage).
- Severance cap
- Yes: seniority premium salary base capped at 2x minimum wage (MXN 630.08/day in 2026); 3-month and 20-day indemnities uncapped
- Owed when the employee resigns
- Partial
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $33,692 incl. employer contributions on notice pay
- Law
- Ley Federal del Trabajo, arts. 39-A, 47-50, 162, 485-486 (last reform 14 May 2026)
A one-time payment of 1 to 4 months' base salary by tenure (1 month for 6 months-2 years up to 4 months for 10+ years) on liquidation or staff reduction, plus 30 days' notice.
- Severance cap
- Yes: 4 months' base salary
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $20,582 incl. employer contributions on notice pay
- Law
- Labour Law of Mongolia (revised edition, 2 Jul 2021), arts. 80.1, 80.4, 80.5, 82
96 hours' wage per year for years 1-5, 144 hours for years 6-10, 192 for 11-15 and 240 beyond; managers get 1-3 months' notice.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $24,734 incl. employer contributions on notice pay
- Law
- Labour Code (Law No. 65-99), arts. 14, 35, 41, 43, 52-53; Decree 2-04-469
Retrenchment: 30 days' notice plus one month's basic remuneration per year of service; gratuity (8.33% of basic) is paid into the Social Security Fund during employment.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $30,992 incl. employer contributions on notice pay
- Law
- Labour Act 2017 (2074), ss. 13, 53, 139, 145
Transition payment of one-third of a monthly salary per year of service from day one, capped at EUR 102,000 (2026) or one annual salary if higher; employer notice 1 month under 5 years, 2 months 5-10 years, 3 months 10-15 years, 4 months from 15 years.
- Severance cap
- Yes: EUR 102,000 (2026) or one year's salary if higher
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $20,173 incl. employer contributions on notice pay
- Law
- Civil Code (BW) Book 7, arts. 7:652 (probation), 7:669 (reasonable ground), 7:672 (notice), 7:673 (transition payment)
Official source · Netherlands hiring guide · Link to this row
No statutory notice period or redundancy pay: notice is whatever the employment agreement says (or 'reasonable' if silent), and redundancy compensation is owed only if the agreement provides it.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $0 incl. employer contributions on notice pay
- Law
- Employment Relations Act 2000, ss. 67A-67B, 103A; Employment Relations Amendment Act 2026
No statutory severance (redundancy pay is left to negotiation or collective agreement); Labour Act notice runs from 1 day to 1 month depending on service.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $5,557 incl. employer contributions on notice pay
- Law
- Labour Act, Cap L1 LFN 2004, s11 (notice), s20 (redundancy), s91 (definition of worker)
Employer notice is 1 month, rising to 2 months after 5 years and 3 months after 10 years (more for employees aged 50+); there is no statutory severance.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $11,655 incl. employer contributions on notice pay
- Law
- Working Environment Act (Arbeidsmiljøloven, LOV-2005-06-17-62), §§ 15-3, 15-6, 15-7
Expat employees get at least one month's BASIC wage per year of service; redundancy needs ministry committee approval and at least 3 months' notice.
- Severance cap
- No
- Owed when the employee resigns
- Yes
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $41,763 incl. employer contributions on notice pay
- Law
- Labour Law, Royal Decree No. 53/2023, arts. 1(22), 11, 37, 38, 44-46, 61
Punjab (largest province): one month's notice or pay, plus gratuity of 30 days' wages per completed year (or part over 6 months) where there is no employer-funded provident fund.
We could not confirm this row against the official text on the review date, so it is left out of every count on this page.
- Severance cap
- No
- Owed when the employee resigns
- Yes
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $30,249 incl. employer contributions on notice pay
- Law
- Punjab Industrial and Commercial Employment (Standing Orders) Ordinance 1968 (as applied in Punjab), Standing Orders 1, 11-A, 12
Economic dismissal needs Labour Ministry (MITRADEL) approval and 30 days' notice, then costs an indemnity of 3.4 weeks' pay per year for the first 10 years (1 week per year after that) plus a seniority premium of 1 week per year.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $25,187 incl. employer contributions on notice pay
- Law
- Código de Trabajo (Decreto de Gabinete 252/1971) arts. 78, 213(C), 214, 215, 224, 225; Ley 95/1976; Ley 8/1981; Ley 44/1995
Dismissal without cause needs notice of 30-90 days by service (30 to 1 yr, 45 to 5 yrs, 60 to 10 yrs, 90 beyond) plus an indemnity of 15 days' wages per year or 6-month fraction; at 10 years' service the worker gains job stability (double indemnity in lieu of reinstatement).
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $20,949 incl. employer contributions on notice pay
- Law
- Código del Trabajo (Ley 213/93, as amended by Ley 496/95) arts. 58, 78, 87, 91, 94-97
Dismissal without a legal cause (incl. individual redundancy) is an arbitrary dismissal costing 1.5 monthly salaries per year of service (pro-rated by months), capped at 12 monthly salaries.
- Severance cap
- Yes: 12 monthly salaries
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $37,500 incl. employer contributions on notice pay
- Law
- TUO del Decreto Legislativo 728, Ley de Productividad y Competitividad Laboral (D.S. 003-97-TR), arts. 10, 34, 38, 46
Redundancy pay of at least one month's pay per year of service (6+ months counts as a full year, minimum one month), with written notice to the employee and DOLE at least one month before.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $30,109 incl. employer contributions on notice pay
- Law
- Labor Code of the Philippines (PD 442, renumbered by RA 10151 / DOLE DA 01-2015), arts. 296, 298, 299
Official source · Philippines hiring guide · Link to this row
Redundancy pay of 1 month's pay under 2 years, 2 months for 2-8 years and 3 months over 8 years, capped at 15x minimum wage; notice 2 weeks / 1 month / 3 months by tenure.
- Severance cap
- Yes: 15x statutory minimum wage (PLN 72090 in 2026; not binding for USD 60k)
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $28,338 incl. employer contributions on notice pay
- Law
- Kodeks pracy (Labour Code 1974) arts. 25, 30, 36, 45; Act of 13 March 2003 on special rules for terminating employment for reasons not concerning employees, arts. 8 and 10
For job elimination the employer gives 15-75 days' notice by seniority and pays 14 days' base pay per full year of service, capped at 12 months' pay.
- Severance cap
- Yes: 12 months' base pay (240x minimum wage); monthly base counted up to 20x minimum wage
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $24,137 incl. employer contributions on notice pay
- Law
- Labour Code (Código do Trabalho, Lei 7/2009, last amended by Lei 32/2025), arts. 112, 363, 366, 371, 372
At least 3 weeks' basic wage per completed year of service after 1 year; notice is 1 month in the first 2 years and 2 months after.
- Severance cap
- No
- Owed when the employee resigns
- Yes
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $28,350 incl. employer contributions on notice pay
- Law
- Labour Law No. 14 of 2004, arts. 39, 49, 54, as amended by Law No. 18 of 2020
At least 20 working days' notice for dismissal for reasons not related to the employee; the Labour Code sets no statutory severance (amounts come only from collective or individual agreements).
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $4,722 incl. employer contributions on notice pay
- Law
- Codul muncii (Law No. 53/2003, republished) arts. 31, 65, 67, 75
Terminal benefit for economic or technological dismissal after 12 months' service: 2 months' average salary under 5 years, 3 months for 5-10 years, 4 months for 10-15 years (up to 7 months over 25 years); notice is 15 days under 1 year and 1 month after.
- Severance cap
- Yes: 7 months' salary (over 25 years)
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $20,373 incl. employer contributions on notice pay
- Law
- Law No. 66/2018 of 30/08/2018 regulating labour in Rwanda, Art 13, 24-26, 31 (as amended by Law No. 027/2023)
Half a month's wage per year for the first 5 years and one month's wage per year after, on the last wage; employer gives 60 days' notice on an open-ended contract.
- Severance cap
- No
- Owed when the employee resigns
- Partial
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $24,002 incl. employer contributions on notice pay
- Law
- Labor Law (Royal Decree M/51 of 1426H) as amended by Royal Decree M/44 of 1446H, arts. 53, 75, 77, 84, 85
Redundancy pay of at least one third of monthly salary per completed year of service with the employer; no notice period for redundancy dismissals.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $8,308 incl. employer contributions on notice pay
- Law
- Labour Law (Zakon o radu, Sl. glasnik RS 24/2005 ... 109/2025), arts. 36, 158, 179(5)(1), 189
No statutory severance or retrenchment benefit; if the contract is silent, notice runs from 1 day to 4 weeks by tenure.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $5,409 incl. employer contributions on notice pay
- Law
- Employment Act 1968, ss. 10, 11, 45; Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment
Notice of 2 months after 1 year and 3 months after 5 years for organisational dismissals; severance of 1 month's average earnings for 2-5 years, 2 for 5-10, 3 for 10-20 and 4 for 20+ years.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $30,318 incl. employer contributions on notice pay
- Law
- Zakonnik prace (Act No. 311/2001 Coll.) pars. 45, 62, 63, 76
Notice of 30 days for 1-2 years, then 2 more days per completed year to a 60-day cap (80 days after 25 years); severance of 1/5 of monthly pay per year up to 10 years and 1/4 per year for 10-20 years, capped at 10 months' pay.
- Severance cap
- Yes: 10 months' average pay (unless sector CBA differs)
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $12,195 incl. employer contributions on notice pay
- Law
- Zakon o delovnih razmerjih (ZDR-1, Uradni list RS 21/13 as amended) arts. 94, 108, 125
At least 1 week's pay per completed year of service on dismissal for operational requirements; notice is 2 weeks up to 1 year of service and 4 weeks after that.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $10,486 incl. employer contributions on notice pay
- Law
- Basic Conditions of Employment Act 75 of 1997, s37 (notice) and s41 (severance); Labour Relations Act 66 of 1995, s188-189
Retirement allowance of 30 days' average wage per year of service once the employee has 1+ year, owed on any exit, plus 30 days' notice or pay in lieu.
- Severance cap
- No
- Owed when the employee resigns
- Yes
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $30,145 incl. employer contributions on notice pay
- Law
- Labor Standards Act, arts. 23, 24, 26; Employee Retirement Benefit Security Act, arts. 4, 8
For a fair objective (economic) dismissal, 20 days' pay per year of service (pro rata by month) capped at 12 months' pay, with 15 days' notice or pay in lieu.
- Severance cap
- Yes: 12 months' pay
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $19,701 incl. employer contributions on notice pay
- Law
- Estatuto de los Trabajadores (RDL 2/2015), arts. 14.1 (probation), 52.c and 53.1 (objective dismissal, notice, indemnity), 56.1
Non-disciplinary termination needs the worker's consent or Commissioner approval; compensation is 2.5 months' salary per year for years 1-5, 2 months for 6-14 (cap LKR 2.5m), plus gratuity of half a month per year after 5 years.
- Severance cap
- Yes: TEWA compensation capped at LKR 2.5 million (binds at all three points for USD 60k)
- Owed when the employee resigns
- Partial
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $26,475 incl. employer contributions on notice pay
- Law
- Termination of Employment of Workmen (Special Provisions) Act No. 45 of 1971 and compensation formula gazettes; Payment of Gratuity Act No. 12 of 1983; Shop and Office Employees Act 1954
Employer notice is 1 month, rising by 1 month for every 2 years of service to 6 months after 10 years; there is no statutory severance.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $20,385 incl. employer contributions on notice pay
- Law
- Employment Protection Act (Lag (1982:80) om anställningsskydd), §§ 6, 7, 11 (as amended to SFS 2022:836)
No severance unless the employee is 50 or older with 20+ years' service (2-8 months' pay, reducible by employer pension contributions); employer notice is 1 month in year 1, 2 months in years 2-9, 3 months from year 10, to month-end.
- Severance cap
- Yes: max 8 months' pay (min 2 months; court sets amount)
- Owed when the employee resigns
- Partial
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $11,735 incl. employer contributions on notice pay
- Law
- Code of Obligations (OR/CO), arts. 335b (probation), 335c (notice), 336-336a (abusive dismissal), 339b-339d (severance allowance)
Half a month's average wage per year of service, capped at 6 months (new pension system), plus 10-30 days' notice depending on tenure.
- Severance cap
- Yes: 6 months' average wage
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $18,376 incl. employer contributions on notice pay
- Law
- Labor Standards Act, arts. 11, 16, 17; Labor Pension Act, art. 12
7 days' basic wage per completed year of service after 12 months, for up to 10 years; 28 days' notice for monthly-paid staff.
- Severance cap
- Yes: 10 years of service
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $11,008 incl. employer contributions on notice pay
- Law
- Employment and Labour Relations Act 2004 (Cap 366), s35, s37, s41, s42; GN 42/2007 Code of Good Practice r10
Severance of 30 days' wages (120 days-1y), 90 days (1-3y), 180 days (3-6y), 240 days (6-10y), 300 days (10-20y), 400 days (20y+), plus at least one pay period's notice.
- Severance cap
- Yes: scale tops at 400 days' wages (20+ yrs)
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $34,660 incl. employer contributions on notice pay
- Law
- Labour Protection Act B.E. 2541 (1998) as amended (No. 7 B.E. 2562), ss. 17, 17/1, 118, 121
One day's wage per month of service, capped at 3 months' wage; one month's notice.
- Severance cap
- Yes: 3 months' wage
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $17,324 incl. employer contributions on notice pay
- Law
- Code du travail (Law 66-27), arts. 14, 21, 22, 23bis; Law No. 2025-9 of 2025
Kidem tazminati of 30 days' gross wage per year of service after 1 year, capped at TRY 73,729.87 per year (Jul-Dec 2026); notice 2-8 weeks by service.
- Severance cap
- Yes: 73729.87 TL per year of service (Jul-Dec 2026)
- Owed when the employee resigns
- Partial
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $18,037 incl. employer contributions on notice pay
- Law
- Labour Law No. 4857, arts. 15, 17, 18, 120; Labour Law No. 1475, art. 14
No statutory severance for a redundancy under the Employment Act 2006 (s.89 leaves it to the contract); a new rule of one month per year is signed but not yet in force.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $11,042 incl. employer contributions on notice pay
- Law
- Employment Act 2006 (Act 6 of 2006), s58, s67, s87-89; Employment (Amendment) Act 2025 (assented 29 Apr 2026)
Two months' written notice and severance of at least one month's average earnings on dismissal for staff reduction.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $17,208 incl. employer contributions on notice pay
- Law
- Labour Code of Ukraine (KZpP, 322-VIII), arts. 27, 40(1), 44, 49-2
Expat employees get 21 days' BASIC wage per year for the first 5 years and 30 days' basic wage per year after that (min. 1 year service), capped at 2 years' wage; notice 30-90 days.
- Severance cap
- Yes: 2 years' wage
- Owed when the employee resigns
- Yes
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $22,269 incl. employer contributions on notice pay
- Law
- Federal Decree-Law No. 33 of 2021 (as amended), arts. 9, 43, 47, 51
Official source · United Arab Emirates hiring guide · Link to this row
After 2 years' service, 1 week's pay per year of service at age 22-40 (0.5 under 22, 1.5 from 41), with week's pay capped at £751 and service at 20 years; employer notice is 1 week per year of service (1 week under 2 years), max 12 weeks.
- Severance cap
- Yes: week's pay capped at £751 (GB, from 6 Apr 2026), max 20 years, max £22,530
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $11,885 incl. employer contributions on notice pay
- Law
- Employment Rights Act 1996, s.86 (notice), ss.135 and 162 (redundancy pay), s.108 (qualifying period)
Official source · United Kingdom hiring guide · Link to this row
No federal statutory notice or severance for an individual dismissal; employment is at-will and severance is contractual only.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $0 incl. employer contributions on notice pay
- Law
- Fair Labor Standards Act (no severance provision); Worker Adjustment and Retraining Notification Act, 29 U.S.C. 2101-2109 (not triggered)
Official source · United States hiring guide · Link to this row
A monthly-paid employee dismissed for any reason other than serious misconduct gets 1 month's pay per year of service or fraction, capped at 6 months.
- Severance cap
- Yes: 6 monthly salaries
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- No
- Exit cost at 5 years, $60,000 salary
- $25,038 incl. employer contributions on notice pay
- Law
- Ley 10.489 (1944) art. 4, as amended by Ley 10.570 (1945); Ley 12.597 (1958) for day/piece-rate workers
Two months' notice on staff reduction; severance scaled by service: 50% of average monthly pay (under 3 years), 75% (3-5), 100% (5-10), 150% (10-15), 200% (over 15).
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $16,205 incl. employer contributions on notice pay
- Law
- Labour Code of the Republic of Uzbekistan (ZRU-798, 2022), arts. 130, 161, 165, 173
Job-loss allowance of one month's average salary per year of service not covered by unemployment insurance, minimum two months, plus 30 days' notice to the employee and the provincial People's Committee.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $15,476 incl. employer contributions on notice pay
- Law
- Labour Code No. 45/2019/QH14, arts. 25, 34, 36, 42, 43, 47; Decree 145/2020/ND-CP, art. 8
At least two months' basic pay per year of service on redundancy, paid by the last working day; 30 days' notice for monthly contracts.
- Severance cap
- No
- Owed when the employee resigns
- No
- Valid reason needed to dismiss
- Yes
- Exit cost at 5 years, $60,000 salary
- $55,171 incl. employer contributions on notice pay
- Law
- Employment Code Act No. 3 of 2019, ss. 27, 52, 53, 54, 55
02 · Key findings
Most of the world pays for an exit. The bill grows fast with tenure.
Three findings come from our 100-country check, and three from the World Bank, the OECD and the ILO.
14.7 weeks
is the median cost of ending a 5-year employee’s contract across 97 countries, counting statutory notice and severance.
EmployerRecords research, Oct 2026
21 of 97
countries owe no statutory severance for a no-fault dismissal. In most of them notice still applies.
EmployerRecords research, Oct 2026
37 of 97
countries owe a 10-year employee more than six months’ pay on exit. 6 owe more than a year.
EmployerRecords research, Oct 2026
4 weeks
is the median statutory notice for a one-year worker in every income group the World Bank measured.
World Bank B-READY 2025, 101 economies
1.1 months
average severance at four years of service across OECD countries, next to 1.3 months of notice.
OECD Employment Outlook 2026
36
countries have ILO Convention 158 in force, the treaty that sets the valid-reason rule for dismissal.
ILO NORMLEX, Oct 2026
03 · At a glance
Severance and notice at a glance: the 14 numbers that matter
Our data
- 01
14.7 weeks Median statutory cost of ending a 5-year employee’s contract across 97 countries, notice plus severance.EmployerRecords research, Oct 2026
- 02
6.5 weeks Median at 1 year of service. Most of it is notice pay.EmployerRecords research, Oct 2026
- 03
21.6 weeks Median at 10 years of service.EmployerRecords research, Oct 2026
- 04
21 of 97 countries with no statutory severance for a no-fault dismissal. Notice can still apply.EmployerRecords research, Oct 2026
- 05
37 of 97 countries where a 10-year employee is owed more than six months’ pay on exit.EmployerRecords research, Oct 2026
- 06
2 countries in our set that owe nothing by statute at 1 year: United States and New Zealand.EmployerRecords research, Oct 2026
Rules
- 07
73 of 97 countries that require a valid reason to dismiss.EmployerRecords research, Oct 2026
- 08
8 of 97 countries where a statutory end-of-service payment is owed even when the employee resigns.EmployerRecords research, Oct 2026
- 09
36 of 97 countries that cap severance by years of service, salary or both.EmployerRecords research, Oct 2026
- 10
32 of 97 countries that allow a probation period of six months or more.EmployerRecords research, Oct 2026
Official sources
- 11
4 weeks Median statutory notice for a worker with one year of service, the same across income groups (101 economies).World Bank B-READY 2025
- 12
1.3 months Average notice in OECD countries at four years of service. Average severance is 1.1 months.OECD Employment Outlook 2026, rules at 1 Jan 2025
- 13
36 countries where ILO Convention 158 on termination of employment is in force.ILO NORMLEX, Oct 2026
- 14
16.7% Share of unemployed people worldwide who receive unemployment cash benefits.ILO World Social Protection Report 2024-26, 2023 data
04 · Notice or severance
Notice is about a month almost everywhere. Severance is where countries split apart.
The median notice period in our data is 4.3 weeks at every tenure we measured. Severance is larger than notice at five years in 55 of 97 countries, so the lump sum, not the notice, decides how expensive an exit is.
Exit cost at 5 years in major hiring markets
Weeks of pay, statutory minimum, permanent employee dismissed for an economic reason. Bars on a 0 to 52 week scale.
- India4.3 + 25.4 = 29.7
- Mexico0 + 29.2 = 29.2
- Philippines4.3 + 21.7 = 26
- China4.3 + 21.7 = 26
- Poland13 + 8.7 = 21.7
- Italy0 + 19.3 = 19.3
- United Arab Emirates4.3 + 15 = 19.3
- Spain2.1 + 14.3 = 16.4
- Netherlands8.7 + 7.2 = 15.9
- Brazil6.4 + 8.3 = 14.7
- France8.7 + 5.4 = 14.1
- Australia3 + 10 = 13
- Canada5 + 5 = 10
- United Kingdom5 + 4.4 = 9.4
- Germany8.7 + 0 = 8.7
- Japan4.3 + 0 = 4.3
- Singapore4 + 0 = 4
- United States0 + 0 = 0
05 · Tenure
Year one and year ten can be different countries entirely
Most severance formulas pay a set number of days or weeks for each year worked, so the gap between countries widens every year. Indonesia goes from 11.5 to 59.1 weeks over ten years. Germany stays at 17.3 because only notice is statutory.
Weeks owed at 1 year and at 10 years
Notice plus severance, statutory minimum. Scale 0 to 60 weeks.
- Indonesia11.5 → 59.1
- China8.6 → 47.6
- India8.6 → 47.6
- Philippines8.6 → 47.6
- Mexico16.3 → 45.5
- Spain5 → 30.7
- Brazil6.4 → 25.2
- France5.4 → 19.5
- United Kingdom1 → 18.7
- Canada2 → 18
- Germany4 → 17.3
- Australia5 → 16
- Japan4.3 → 4.3
- United States0 → 0
36 of 97
countries cap severance by years of service, salary or both.
Caps matter as much as rates. The UK, Turkey and Hong Kong cap the pay used in the formula, which keeps a well-paid employee’s severance far below the headline rule.
06 · Exit cost in US dollars Our calculation
On a $60,000 salary, a five-year exit costs $18,383 in the median country
We priced the same exit everywhere: an employee on $60,000 a year with five years of service. Notice pay carries the employer’s social contributions from our payroll tax data. Severance usually does not, so it is counted at face value.
The 15 most expensive exits at 5 years
US dollars, statutory minimum, $60,000 salary.
- Zambia$55,171
- Indonesia$43,328
- Egypt$42,858
- Bolivia$42,409
- Oman$41,763
- Peru$37,500
- Thailand$34,660
- India$34,289
- Dominican Republic$34,008
- Mexico$33,692
- China$31,707
- Ecuador$31,269
- Nepal$30,992
- Slovakia$30,318
- South Korea$30,145
$0
is the statutory exit cost in the United States at any tenure. The same employee in Zambia costs $55,171.
$18,383
median exit cost at five years across 97 countries, with notice pay and the employer’s contributions on it.
Gulf states
Figures assume the whole salary is basic pay. Where basic pay is half the package, as is common, the gratuity is about half what we show.
07 · Probation and no-severance countries
The cheapest exit is the first few months
Probation is when most countries let you end a contract with little or no notice. 32 of 97 countries allow six months or more; 20 set no statutory probation, which leaves it to the contract.
Maximum statutory probation
Months, selected countries. Bars on a 0 to 24 month scale.
- Cyprus24 mo
- Greece12 mo
- Kenya12 mo
- France8 mo
- Tunisia6 mo
- Germany6 mo
- Spain6 mo
- Italy6 mo
- Argentina6 mo
- China6 mo
- Philippines6 mo
- United Arab Emirates6 mo
- Saudi Arabia6 mo
- Poland3 mo
- Brazil3 mo
- Netherlands2 mo
- Mexico1 mo
- India0 mo
- Singapore0 mo
- United Kingdom0 mo
- Australia0 mo
- Japan0 mo
- Canada0 mo
- United States0 mo
21
No statutory severance
Notice may still apply, and a valid reason is usually still needed.
8
Owed even on resignation
Gratuity or accrual schemes pay out on every exit, so budget them from day one.
20
No statutory probation
A trial period only exists if the contract creates one.
08 · For employers
Budget the exit before you make the offer
Termination rules follow the country where the employee works, not where your company sits. An employer of record still applies the local notice and severance and passes the cost through on its invoice.
Price the hire and its exit together with the EOR cost calculator.
- Read the row before you hire. Note the severance rule and any cap for the country.
- Set probation in the contract. Where probation is not automatic, it only applies if the contract says so.
- Accrue severance from year one in countries that pay for every year of service.
- Check who counts as a worker. In India, Pakistan and Bangladesh, managers can fall outside retrenchment rules.
- Ask your EOR how it bills exits: at cost, with a fee, or through a monthly accrual.
- Recheck before you dismiss. Belgium, Argentina, the UK and Indonesia changed or are changing the rules.
4 weeks
median notice for a one-year worker in 101 economies
World Bank B-READY 2025
1.3 + 1.1
months of notice and severance at four years, OECD average
OECD Employment Outlook 2026
16.7%
of unemployed people worldwide receive unemployment cash benefits
ILO, 2023 data
09 · Methodology
One employee, one exit, 100 labour codes
The scenario
A permanent, full-time white-collar employee aged 35, dismissed for an economic reason by a private employer with 50 staff. Statute only, no collective agreements.
What we count
Statutory notice the employer owes, and any lump sum owed at exit: severance, redundancy pay, gratuity, Italy’s TFR, Brazil’s 40% FGTS fine. Amounts paid into outside funds during employment are left out.
Sources
Labour codes, labour ministries and official gazettes for 79% of rows; law firm country guides where official texts would not load. Every row links to its source.
Why 97 and not 100
We checked 100 countries. Ethiopia, Lebanon and Pakistan stay in the table but are left out of every count, because their official texts could not be confirmed on the review date.
Every change logged
Updates are recorded with the date, the old value, the new value and the source. Data reviewed 26 Oct 2026.
Months convert at 4.33 weeks. Where a cap depends on salary, we applied it to a $60,000 salary converted at ECB reference rates of 23 Oct 2026. Our numbers differ from indexes that use a different salary, tenure or dismissal type. How we source and check data is set out in our editorial guidelines.
10 · FAQ
Severance and notice: common questions
How much severance is required by law?
It depends on the country and on length of service. Across the 97 countries we checked, the median statutory cost of dismissing an employee with five years of service is 14.7 weeks of pay, counting notice and severance. 21 countries require no severance at all for a no-fault dismissal, while Zambia, Indonesia and Egypt are among those owing more than six months at five years.
Which country has the highest severance pay?
In our scenario the highest exit cost at five years of service is Zambia, at 47.6 weeks of pay. Indonesia and Oman follow. Rankings change with tenure and salary because many countries cap severance.
Which countries have no severance pay?
21 of the 97 countries we checked have no statutory severance for a no-fault dismissal, including the United States, New Zealand, Japan and Germany. Germany and Japan still require notice and a valid reason, so exits there usually end in a negotiated settlement.
Do you get severance if you resign?
Usually not. In 8 of 97 countries a statutory end-of-service payment is still owed on resignation, mostly gratuity or accrual schemes such as Italy’s TFR and the end-of-service gratuity in Gulf states.
What is the difference between notice and severance?
Notice is the period of employment, or pay in lieu, the employer owes before the contract ends. Severance is a separate lump sum for losing the job. Many countries require both, and the median notice at every tenure in our data is about one month.
Which countries allow at-will employment?
Very few. 73 of the 97 countries we checked require a valid reason to dismiss. The United States is the main at-will country; a few others, such as Belgium, let employers dismiss without a stated reason but make up for it with long notice.
How long can a probation period be?
The median statutory maximum in our data is 3 months. 32 countries allow six months or more, and 20 set no statutory probation at all, leaving it to the contract.
Related research
More EmployerRecords research on hiring across borders
Reports built the same way: official sources first, plus data we collect ourselves.
All research reports · Spotted a rule change? Send us the official source and we will update the row and log it.