In a volatile economy, terminations happen — and the point where employees most often lose out is "signing too quickly" before knowing their rights. Here are 5 things to know first.
1. Don't rush to sign a "resignation letter"
Voluntary resignation generally carries no severance. If the employer pressures you into a resignation letter when it's really a dismissal, you may be giving up a large entitlement.
2. Severance is based on length of service
Severance is tiered — the longer you worked, the more you receive — from 120 days of service up to the highest tier for 20+ years. Have a lawyer calculate it correctly from your "last wage rate."
3. Payment in lieu of notice is separate
If the employer ends your job immediately without notice, you're entitled to "payment in lieu of notice" on top of severance.
4. Dismissal due to losses still requires payment
Financial difficulty is not an exemption from paying severance, except in specific cases such as dishonesty or wilfully causing serious damage.
5. Unfair dismissal can mean extra compensation
If the dismissal lacks reasonable cause, the Labour Court may order reinstatement or additional damages — and labour cases require no court filing fee.
📌 Read the full guide: How much severance am I owed? Employee rights guide · see labour services
If you were just terminated and aren't sure what you're owed, talk to our employment law team before signing away your rights.