Terminations, end of service awards and settlements
Introduction
Ending employment lawfully: grounds and procedure, notice, end of service awards and the final settlement that closes the relationship.
Termination is where most labour claims begin. The Labour Law distinguishes between expiry, resignation, termination for a valid reason, dismissal for serious misconduct without an award, and termination without a valid reason, which entitles the employee to compensation on top of the end of service award.
The end of service award is half a month's wage for each of the first five years and a full month's wage for each year after that, reduced where the employee resigns before ten years of service. Notice periods, which the 2025 amendments changed, and outstanding leave and benefits complete the calculation.
We advise on grounds and procedure before a decision is taken, calculate entitlements, handle workforce reductions in a restructuring, and draft settlement and release agreements that close the relationship and are properly documented.
How we help
What the work covers
Grounds & procedure
Checking the reason, the investigation and the notice before termination.
Entitlements
Calculating the end of service award, notice pay, leave and other dues.
Workforce reductions
Planning reductions in a restructuring lawfully and fairly.
Settlements
Settlement and release agreements that close the relationship.
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