The rules on severance pay in detail

Statutory severance is paid in a limited number of circumstances, defined by statute. The payment is based on the number of ‘average monthly salaries’ or ‘minimal salary’ to be paid and the average monthly salary is calculated based on the last two months’ fixed salary plus all bonuses. The minimal salary is set by the Government.
The amount of statutory severance pay is as follows:

  • one average month’s salary – in cases of redundancy, layoff or refusal to work under changed work conditions;
  • two minimal salaries – in the case of an employee’s conscription to the army;
  • three average months’ salary – in the case of an employee’s dismissal owing to the employer’s breach of contract or breach of the CBA;
  • six average months’ salary – in the case of a corporate officer’s dismissal without reasons given.
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Author: Vasil Kisil & Partners

Date: December 2018


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