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Severance only on certain grounds · 1–4 months' pay
Updated July 2026

📄 Does everyone who is dismissed get severance?

No
Quick answer

They do not — and this is the commonest myth about dismissal. Severance attaches to particular employer-dismissal grounds — chiefly lack of professional ability, redundancy, reinstatement of a former employee, liquidation and prolonged incapacity. After resigning, agreeing mutually, or being dismissed for misconduct, it does not follow automatically. Where it is due, the amount rises with service: one month's average earnings under five years; two from five to ten; three from ten to twenty; four above twenty years. The notice period may be immediate, 10 days, one month or two months, depending on the ground relied on.

📋 The rules

  • An employer may dismiss only on statutory grounds
  • The reason must be given in writing
  • Severance is due only on some of those grounds
  • The amount: 1–4 months' average pay by service
  • Notice: immediate, 10 days, 1 or 2 months

🔓 Exceptions

  • A trade-union member of over six months generally cannot be dismissed without the union's prior consent
  • Where employment ends by written mutual agreement, severance does not follow automatically
  • A registered letter is presumed received on the seventh day after posting

⚠️ Penalties & fines

A procedural breach costs €35–350 for a natural person and €70–1,100 for a legal entity, but the civil consequences are incomparably larger. If a court finds the dismissal unlawful or procedurally defective, it may invalidate it, reinstate the employee, and award average earnings for the whole period of forced absence. But everything turns on one deadline: you have only one month from receiving the notice to challenge it in court. Miss that and even a plainly unlawful dismissal stands. And mind the postal rule: a registered letter is presumed received on the seventh day after posting — even if you never collected it.

📎 Official sources

Last verified: 2026-07-12

❓ Frequently asked

Does everyone dismissed get severance?

No. Severance attaches to particular employer-dismissal grounds — chiefly redundancy, lack of professional ability and liquidation. After resigning of your own accord it does not follow at all.

How much is severance?

One month's average earnings where service is under five years; two months from five to ten; three from ten to twenty; and four months where service exceeds twenty years.

How long is the notice period?

Depending on the ground it may be immediate, ten days, one month or two months. Redundancy and liquidation normally carry a one-month notice period before employment ends.

How long do I have to challenge it?

Only one month from receiving the notice. Missing that deadline means even a plainly unlawful dismissal stands — it is the single most important date in the whole process.

What can a court award?

If the dismissal is found unlawful, the court may invalidate it, reinstate you, and award average earnings for the entire period of forced absence. That usually dwarfs any administrative fine.

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