Autor: Martin Doubrava, Datum: 17. 11. 2020

Severance pay, payment of severance pay, and statutory amount and payment of severance pay for employees

Upon termination of employment in certain cases listed below, the employee is entitled to severance pay directly by law. These are cases where the employment or termination of employment is terminated because the employer terminates the employer or part of it, the employer or part of it moves, or the employee becomes redundant due to the decision of the employer or competent authority to change tasks, technical equipment, or reducing the number of employees to increase work efficiency. The amount of severance pay is determined according to the number of years worked for the same employer. Employees whose employment lasts for more than two years can earn a severance pay of three average earnings. The amount of at least twelve times the average earnings for the previous months must be received by an employee who, through no fault of his own, received a notice of termination of employment for statutory health reasons, such as an accident or an occupational disease. The amount of severance pay can be determined more precisely and for employees even more conveniently by collective agreements of trade unions. It is then irrelevant for the payment of severance pay to an employee whether the employee will start another employment with another employer immediately after the termination of the employment relationship.

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