The rules on severance pay in detail
Salaried employees who have been continuously employed with the same employer for 12 or 17 years are entitled to a severance payment amounting to one or three months’ pay respectively. Monthly pay includes all fixed salary elements, including pension, the taxable value of benefits, etc.
Some collective agreements contain rules on severance pay based on the employees’ length of service.
Employers sometimes also provide contractual redundancy pay schemes that offer payments that are more generous than the statutory ones, but additional contractual redundancy pay is mostly offered to executive employees.
Author: Norrbom Vinding
Date: December 2019