The rules on severance pay in detail

If an employment contract is terminated for business reasons or employee incompetence, the employee is entitled to receive a severance payment. The amount depends upon the employee’s length of service with the employer and the amount of the employee’s salary. There are limits on the total amount of the severance payment, ranging between one fifth and one third of the average monthly salary for each year of service, depending upon the total years of service with the employer. In all other cases of termination by the employer, the employee is not entitled to a severance payment.

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Author: Šelih & Partnerji 

Date: December 2019