What Severance Pay Rules Must Employers Follow in Central African Republic?

Which Employees Qualify for Severance Pay?

• Employees on open-ended (CDI) contracts dismissed for economic reasons or for reasons not related to serious misconduct.
• Employees with at least the minimum continuous service required by the Labour Code or an applicable collective agreement.
• Employees whose fixed-term (CDD) contracts are terminated early by the employer without a legally valid reason.
• Employees who are laid off due to restructuring, redundancy, or closure of all or part of your company’s operations.
• Employees who resign for legally recognized “constructive dismissal” reasons attributable to the employer, where treated as a dismissal.
• Employees not excluded by specific rules, such as those dismissed for gross or serious misconduct after a properly documented procedure.

What Are the Legal Timelines for Paying Severance?

In the Central African Republic, severance is expected to be paid at the end of the employment relationship, together with the employee’s final salary and accrued benefits. In practice, you should aim to settle all amounts on the employee’s last working day or within a very short period specified in internal policy or collective agreements. Any delay can be treated as non-payment of wages, exposing your company to claims and potential penalties. To stay safe, document the calculation, obtain a signed receipt, and ensure payment is made via traceable methods. Where there is a dispute over the amount, pay the undisputed portion immediately while you resolve the balance in writing.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in the Central African Republic, you risk both financial and legal consequences. Labour inspectors and courts can intervene, and employees can bring claims for unpaid amounts, damages, and interest. Non-compliance can also affect your ability to operate smoothly, especially if disputes escalate or become collective. You should treat severance as a core wage obligation, not an optional benefit.

• Courts can order payment of outstanding severance plus legal interest.
• You may face statutory fines or administrative sanctions following labour inspections.
• Your company can be liable for damages for abusive or unfair dismissal.
• Disputes may lead to reinstatement orders or higher compensation awards.
• Repeated breaches can damage your reputation with regulators, unions, and employees.

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 Central African Republic severance rules. Legally, the EOR is usually the formal employer and handles payroll, contracts, and termination paperwork, including severance calculations and payments. However, your company, as the client, typically directs day-to-day work and may be considered a co-responsible party if dismissals are abusive or discriminatory. If the EOR fails to comply, employees may still seek redress from both the EOR and your business. Your service agreement should clearly allocate severance responsibilities, funding, and decision-making to avoid gaps.

Be 100 Percent Compliant in Offering Severance with Playroll

Playroll helps your company navigate Central African Republic labour rules by standardizing compliant employment contracts, notice procedures, and severance calculations. Our team tracks local legal developments and common market practice, so you do not have to interpret the Labour Code on your own. When a termination is necessary, we guide you through documentation, timelines, and approvals to reduce the risk of claims.

By using Playroll as your global employment partner, you can centralize payroll, benefits, and offboarding while staying aligned with local law. We coordinate with in-country experts to confirm eligibility, compute statutory and contractual severance, and ensure payments are made correctly and on time. That way, your team can focus on business decisions while we help you stay 100 percent compliant with severance obligations.