What Severance Pay Rules Must Employers Follow in Angola?

Which Employees Qualify for Severance Pay?

• Employees with an open-ended contract terminated without just cause or for objective (economic, technological, or structural) reasons.
• Employees on fixed-term contracts that are not renewed when the law treats the non-renewal as a dismissal or where notice rules are not respected.
• Employees with at least the minimum continuous service required by law or by a collective bargaining agreement for redundancy or restructuring severance.
• Employees dismissed for reasons linked to company closure, relocation, or significant reduction of activity, where no suitable alternative role is offered.
• Employees whose termination is found unlawful by a court or labour authority, and who opt for compensation in lieu of reinstatement.
• Employees covered by more generous severance terms in their contract or collective agreement, where those terms exceed statutory minimums.

What Are the Legal Timelines for Paying Severance?

In Angola, severance must be paid at the time the employment relationship ends, together with any outstanding salary, unused vacation, and other final entitlements. In practice, your company should aim to pay on the employee’s last working day or within a very short period specified in the termination documents. Delays can be treated as non-payment of wages, exposing you to interest, penalties, and potential disputes. If the amount is contested, you should still pay the undisputed portion immediately and document the basis for any remaining calculation. Always keep written proof of payment and a signed breakdown of how severance was calculated.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in Angola, you risk administrative fines, labour-inspection actions, and potential court claims for unpaid amounts plus interest. Non-compliance can also lead to a finding of unlawful dismissal, which significantly increases your financial exposure and reputational risk.

• Fines and administrative penalties imposed by labour inspectors for non-payment or late payment of severance.
• Accrual of interest on overdue amounts and possible monetary compensation for material and moral damages.
• Court orders to pay back pay, severance differentials, and legal costs if a dismissal is ruled unlawful.
• Risk of reinstatement orders or higher compensation in lieu of reinstatement for unfair dismissal.
• Reputational damage and increased scrutiny from unions and authorities in future workforce changes.

Does Outsourcing Employment via an EOR Change Severance Liability?

Using an Employer of Record (EOR) such as the service described at https://www.playroll.com/employer-of-record does not remove the need to follow Angolan severance rules. In most structures, the EOR is the legal employer on paper and is responsible for calculating and paying severance in line with the General Labour Law. However, your company, as the economic or client employer, usually bears the cost and can still face indirect exposure if the arrangement is challenged. You should ensure your EOR contract clearly allocates responsibility for compliance, documentation, and dispute handling. Regular audits and transparent communication help confirm that severance is being handled lawfully for every Angolan hire.

Be 100 Percent Compliant in Offering Severance with Playroll

Managing severance in Angola means tracking contract types, seniority, salary components, and the legal grounds for termination, then applying the correct statutory formula. Your team also needs to manage notice periods, consultation requirements for redundancies, and documentation that shows the dismissal reason and calculation method. Without a structured process, it is easy to miss a step and trigger fines or litigation.

Playroll helps your company stay compliant by standardising how terminations and severance are handled for Angolan employees. Our experts monitor changes to the General Labour Law, local practice, and collective agreements, and then build those rules into clear workflows. You get accurate cost estimates before you terminate, compliant documentation, and on-time payments, so you can exit employees fairly while protecting your business from avoidable penalties.