Severance Pay and Notice Periods by Country: What It Costs to End Employment

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

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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)

Official source · Link to this row

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

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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

Official source · Australia hiring guide · Link to this row

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

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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

Official source · Link to this row

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

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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

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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)

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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)

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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

Official source · Brazil hiring guide · Link to this row

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

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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

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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)

Official source · Canada hiring guide · Link to this row

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

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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

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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

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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)

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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

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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

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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

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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

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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

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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

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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

Official source · Link to this row

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

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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

Official source · Link to this row

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

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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

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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)

Official source · France hiring guide · Link to this row

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

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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)

Official source · Germany hiring guide · Link to this row

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)

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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

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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)

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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

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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

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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)

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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)

Official source · India hiring guide · Link to this row

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

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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

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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)

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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)

Official source · Link to this row

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

Official source · Link to this row

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

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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

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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

Official source · Link to this row

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

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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

Official source · Link to this row

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

Official source · Link to this row