What Severance Pay Rules Must Employers Follow in Burundi?

Which Employees Qualify for Severance Pay?

• Employees dismissed for economic, technological, or organizational reasons generally qualify for statutory severance.
• Employees terminated for reasons linked to capacity or non-culpable performance may qualify if they meet minimum service thresholds.
• Employees on open-ended (indefinite) contracts usually benefit more clearly than those on very short fixed-term contracts.
• Employees dismissed for serious or gross misconduct typically lose the right to severance under the Labour Code.
• Employees who resign voluntarily or mutually agree to end the contract may only receive severance if this is agreed in writing or in a CBA.
• Employees covered by a collective agreement or company policy may receive higher severance than the statutory minimums.

What Are the Legal Timelines for Paying Severance?

In Burundi, the Labour Code expects you to settle all termination-related payments, including severance, at the end of the employment relationship or within a short, reasonable period set by practice or collective agreements. In most cases, you should aim to pay severance on the employee's final working day or within a few days after the notice period ends. Where internal procedures or bank processes cause delay, document the reasons and keep clear evidence of calculations and approvals. If a dispute is pending, you should still pay any undisputed minimum amounts while the remainder is resolved. Paying promptly reduces the risk of labour inspector intervention, court claims, and penalty interest on late payments.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in Burundi, you risk financial, administrative, and reputational consequences. Labour inspectors and courts can order back payment of all outstanding amounts, plus potential damages and interest. Non-compliance can also trigger closer scrutiny of your wider HR practices and complicate future restructurings.

• Courts may award penalty interest on late or underpaid severance.
• Labour inspectors can issue warnings and require corrective action within strict deadlines.
• Repeated or serious breaches can escalate into higher fines or criminal liability for responsible managers.
• Employees may seek reinstatement or additional damages if the termination itself is found unlawful.
• Disputes and negative publicity can damage your employer brand and make hiring harder.

Does Outsourcing Employment via an EOR Change Severance Liability?

Using an Employer of Record (EOR) such as the provider described at https://www.playroll.com/employer-of-record does not remove the need to follow Burundi's severance rules. In an EOR model, the local EOR entity is usually the legal employer responsible for calculating and paying severance under the Labour Code. However, your company, as the client, typically funds these costs and may be contractually liable if your instructions lead to an unlawful termination. Courts and inspectors can look through the arrangement if they believe the EOR is being used to avoid employee protections. You should therefore treat EOR engagements as if the employees were your own when planning severance budgets and risk controls.

Be 100 Percent Compliant in Offering Severance with Playroll

Burundi's severance rules can feel complex when you are juggling length-of-service thresholds, reasons for termination, and any collective agreements that apply to your workforce. Playroll helps your team translate the Labour Code into clear, practical steps so you know exactly when severance is due, how to calculate it, and how to document each decision. That means fewer surprises during restructurings and a smoother experience for departing employees.

With Playroll, you can centralize your global terminations, including Burundi, in one platform while relying on local legal expertise. Our team helps you plan timelines, budget for severance, and coordinate with payroll so payments are made accurately and on time. You stay the decision-maker on business strategy, while we help you stay fully compliant with local employment law.