In case of terminating a labour contract, employers may be liable for a severance pay to the employee (including both local and expatriate employees) in question.
According to the Labour Code, severance pay equals half a month's wage for every year that the employee has been working.
The qualified 'Year' as the basis for calculation of severance pay shall be the total period during which the employee actually worked for the employer minus the period over which the employee participated in the UI scheme and the period for which severance pay has been paid by the employer(s).
For example, an employee that had been with an employer for five years – amongst
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 15:14