Labour Act – Severance pay and Fixed-term employment contract

The Labour Act regulates key aspects of employment relationships, including the possibility of severance pay and the rules governing fixed-term employment contracts. Employers and employees must be mindful of the legal limitations and obligations arising from these provisions. Right to severance pay Severance pay is a legally prescribed monetary amount that an employer pays to an employee to mitigate the consequences of employment termination, provided the employee has worked for the employer for at least two continuous years.The right to severance pay applies to employees whose employment contract is terminated regularly, under the above-mentioned condition. Conversely, employees are not entitled to severance pay...

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