SEVERANCE PAY

The basic principle is that every employee who is made redundant is entitled to a transition payment. An employee whose fixed-term contract is not renewed by the employer is also entitled to a transition payment. In short, the transition payment amounts to one-sixth of a month’s salary for every six months worked. In addition, there is the possibility of a supplementary transition payment in the event of termination on the ‘i’ ground. In exceptional cases, an employee may be entitled to fair compensation in addition to the transition payment. The court may award the employee fair compensation if the employer has acted in a seriously culpable manner. However, this is not often the case.