What Severance Pay Rules Must Employers Follow in Cameroon?

Which Employees Qualify for Severance Pay?

• Employees with at least two years of continuous service whose contracts are terminated by the employer for reasons other than serious misconduct.
• Employees on open-ended (indefinite) contracts who are dismissed for economic, organizational, or personal reasons not amounting to gross misconduct.
• Fixed-term employees whose contracts are ended early by the employer without a serious-fault justification recognized by the Labour Code.
• Employees who resign for employer breach that is treated in practice as constructive dismissal by the labour inspector or courts.
• Employees who are laid off due to redundancy or business closure and who meet the minimum service requirement.
• Employees covered by collective agreements or company policies that grant severance on more generous terms than the statutory minimum.

What Are the Legal Timelines for Paying Severance?

In Cameroon, the Labour Code requires that all final dues, including severance pay, be settled promptly at the end of the employment relationship. In practice, labour inspectors expect you to pay severance at the latest by the normal payroll date following the employee’s last working day, and ideally at the time of issuing the work certificate. Any delay can be treated as unlawful withholding of wages and may trigger complaints to the labour inspectorate or the labour court. To stay safe, your company should document the calculation, obtain written acknowledgment of receipt, and avoid splitting severance into long instalments unless clearly agreed and compliant with local practice.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in Cameroon, you risk administrative sanctions, back-pay awards, and potential criminal fines under the Labour Code. Disputes are typically handled first by the labour inspectorate and then by the competent labour court, which can order payment of outstanding severance plus additional damages.

• Labour inspectors can require you to rectify underpayments and may refer serious breaches for prosecution.
• Courts can order payment of unpaid severance with interest and, in some cases, moral or punitive damages.
• Non-compliance can lead to fines and, for repeated or intentional violations, potential criminal liability for company representatives.
• Employees may also claim related entitlements such as notice pay, accrued leave, and salary arrears alongside severance.
• Persistent non-compliance can damage your company’s reputation and complicate future dealings with authorities and unions.

Does Outsourcing Employment via an EOR Change Severance Liability?

Using an Employer of Record (EOR) such as https://www.playroll.com/employer-of-record does not remove the need to follow Cameroonian severance rules, but it can shift day-to-day compliance to the EOR entity. In Cameroon, the legal employer on the contract is primarily responsible for calculating and paying severance according to the Labour Code and any applicable collective agreement. However, if your company directs the employee’s work, you can still be drawn into disputes as a co-responsible party. A well-drafted EOR agreement should clearly allocate financial responsibility for severance, ensure local-law-compliant contracts, and define how terminations are planned and executed. You should always coordinate with the EOR before initiating any dismissal to avoid unexpected liabilities.

Be 100 Percent Compliant in Offering Severance with Playroll

Playroll helps your company stay compliant with Cameroon’s severance rules by standardizing contracts, tracking length of service, and flagging when statutory thresholds are met. Our team monitors changes to the Labour Code, collective agreements, and inspectorate practice so your severance calculations reflect current legal minimums and common market practice. When you plan a termination, we help you model different scenarios, estimate severance costs, and prepare compliant documentation for the employee and authorities.

With Playroll as your global employment partner, you can manage Cameroonian terminations with clear timelines, accurate payouts, and reduced dispute risk. We coordinate with local experts and, where relevant, your Employer of Record structure to ensure that notice, severance, and final pay are aligned. That way, your team can focus on business decisions while we handle the technical details of labour-law compliance and employee offboarding.