Severance Pay: Who Qualifies and What You Get
Learn if you are entitled to severance pay after leaving your job and how much you should receive based on your time at work.
Severance pay is a lump-sum payment provided to workers when they leave their jobs, serving as a form of financial support after employment ends.
Who it's for
You qualify for this benefit if you have worked for the same employer for more than one year and your working hours average at least 15 hours per week.
What you get
You are entitled to receive a payment equal to 30 days of your average wage for every full year you have worked at the company.
What it costs you
It costs you nothing. This payment is a legal obligation that your employer must fulfill.
The catch to know
Some employers may attempt to classify you as an independent contractor rather than a formal employee to avoid paying this benefit.
How to apply
- Confirm your total length of service and average weekly hours.
- Calculate your expected payment based on your average wages.
- Request the payment from your employer upon leaving your position.
- Contact the Ministry of Employment and Labor if your employer refuses to pay.