What Severance Pay Rules Must Employers Follow in Comoros?

Which Employees Qualify for Severance Pay?

• Employees on open-ended (indefinite) contracts who are dismissed for reasons other than serious or gross misconduct generally qualify for severance.
• Employees with at least the minimum continuous service required by the Labour Code or a collective agreement are typically entitled to severance.
• Workers terminated for economic, organizational, or technological reasons usually qualify, provided legal procedures are followed.
• Employees dismissed for personal reasons that do not amount to serious misconduct may be owed severance, depending on length of service.
• Fixed-term employees may qualify if the contract is ended early by the employer without a lawful reason or required notice.
• Employees covered by a collective bargaining agreement that grants more generous severance terms qualify under those improved conditions.

What Are the Legal Timelines for Paying Severance?

In Comoros, the Labour Code expects you to settle all termination-related payments, including any severance owed, 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 or shortly after the employee’s final working day, together with salary, unused leave, and other entitlements. If an internal policy or sector agreement sets a specific deadline, you must follow that stricter rule. To reduce disputes, document the calculation, obtain written acknowledgment of receipt, and keep proof of payment. When in doubt, paying earlier rather than later is the safest compliance approach.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in Comoros, you risk labour inspections, financial liability, and potential court orders to compensate the employee. Non-compliance can also damage your reputation with local authorities and make future workforce changes more difficult to manage.

• Administrative sanctions or fines may be imposed by labour authorities.
• Courts can order back payment of severance plus interest or damages.
• You may face reinstatement orders if the termination is found unlawful.
• Disputes can trigger audits of your wider employment practices.
• Repeated breaches can harm your ability to operate or win public contracts.

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 Comoros severance rules, but it can shift day-to-day compliance work to a specialist. In an EOR model, the EOR is the legal employer in Comoros and is responsible for calculating and paying severance under local law. Your company still carries commercial and relational responsibility, especially if you direct the decision to terminate. You should ensure your EOR contract clearly allocates who funds severance, how amounts are calculated, and what happens if the law or practice changes. A well-structured EOR arrangement helps you avoid missteps while keeping predictable costs.

Be 100 Percent Compliant in Offering Severance with Playroll

Playroll helps your company navigate Comoros severance rules by combining local legal insight with practical payroll execution. Your team gets clarity on who qualifies, how to calculate severance based on tenure and salary, and how to align with any collective agreements or internal policies. We also help you structure notice, documentation, and exit timelines so that severance is paid correctly and on time.

Beyond a single termination, Playroll supports you in building repeatable, compliant processes for hiring, managing, and offboarding employees in Comoros. Whether you operate through a local entity or via our Employer of Record solution, we centralize contracts, approvals, and payment workflows. That way, your managers can make business decisions confidently while we handle the technical details of severance and broader employment compliance.