The rules on severance pay in detail

In particular cases, the employer must make a severance payment to the employee. These are where the employment is terminated because of the employee’s lack of professional skills; his or her poor health; because a former employee has been reinstated; redundancy; or liquidation of the employer. The amount of the payment depends on the employee’s seniority with the organisation:

  • one month’s average earnings – if employed less than five years;
  • two months’ average earnings – if employed from five to ten years;
  • three months’ average earnings – if employed from 10 to 20 years;
  • four months’ average earnings – if employed more than 20 years.
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Author: COBALT Latvia

Date: December 2019