Statutory regulations on severance pay in Europe

The regulation of severance pay, that is the statutory benefits an employee receives from their employer to compensate for loss of income due to the termination of the employment, is left to the discretion of the Member States. The main characteristics of the legal entitlements employees have when leaving their job are summarised in the European Restructuring Monitor database on restructuring related-legislation. However, the database cannot provide a full picture as severance pay is not legally regulated in all countries (for example, Finland and Sweden). Even in those countries where a legal baseline exists, collective or company agreements and individual contracts may result in different provisions that cannot be captured by the database.

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