Severance Pay

The employee is entitled to severance pay on the day he was dismissed from his employment or, alternatively, also in the case where he resigned due to certain grounds stipulated in the Severance Pay Law. The purpose of the Severance Pay Law, to which every employer is obligated in accordance with protective laws, collective agreements and/or extension orders according to the employment sector, is to strengthen the bond between the employee and their workplace and, in fact, to allow the employee to search for work with "peace of mind". The calculation of severance pay is derived from the employee's personal employment agreement, seniority, type of salary (monthly or daily), cost of living allowance, family allowance, etc. For example, an hourly paid employee will receive severance pay according to the average hours for their entire period of employment multiplied by the last hourly rate.