The rules on severance pay in detail

In the event of the dismissal of a salaried employee who has been continuously employed in the same company for 12 years, the employer must, on termination of the employment relationship, pay one month’s salary. If the employee has been working for 17 years, the obligation is to pay three months’ salary. This is in addition to the amount payable for the notice period.

In addition, employees may be entitled to severance pay under their individual contracts or a collective agreement. 

Monthly pay includes all fixed salary elements, including pension, the taxable value of benefits, etc.

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Author: Norrbom Vinding

Date: December 2018

 

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