What Severance Pay Rules Must Employers Follow in Gabon?

Which Employees Qualify for Severance Pay?

• Employees on open-ended (CDI) contracts dismissed for reasons other than serious or gross misconduct generally qualify for statutory severance.
• Workers must usually have completed at least one year of continuous service with your company to access severance rights.
• Employees terminated for economic, organizational, or non-disciplinary reasons are typically entitled to severance under the Labour Code.
• Fixed-term (CDD) employees may receive an end-of-contract indemnity if the contract ends early at your initiative without serious fault by the employee.
• Employees covered by a collective bargaining agreement that grants more favorable severance terms qualify for those enhanced benefits.
• Senior managers and expatriate staff are covered by statutory rules but may also have contractual severance packages that you must honor if they are more generous.

What Are the Legal Timelines for Paying Severance?

In Gabon, severance is normally due at the effective end of the employment relationship, alongside the final paycheck and other termination entitlements. Your company should calculate and pay the severance indemnity as soon as the notice period ends, or on the last working day if you waive notice. Labour inspectors and courts expect payment without undue delay, typically within a few days of termination at most. To stay safe, align your internal policy so that severance, unused leave, and any bonuses due are paid in one consolidated settlement. Always provide a written breakdown of the calculation and obtain a signed receipt from the employee where possible.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in Gabon, you risk financial, administrative, and reputational consequences. The Labour Inspectorate can intervene following an employee complaint, and disputes may be escalated to the labour courts. In addition to back pay, you may face damages, interest, and potential fines, especially if non-compliance is deliberate or repeated. Proper documentation and timely payment are your best protection against sanctions and litigation.

• You may be ordered to pay the full unpaid severance plus legal interest.
• Courts can award additional damages for unfair or abusive termination.
• Labour authorities may impose administrative fines or corrective orders.
• Persistent non-compliance can trigger audits and closer regulatory scrutiny.
• Disputes can damage your employer brand and strain relations with staff 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 can shift day-to-day HR administration and local payroll obligations, but it does not remove the need to respect Gabonese severance rules. In most EOR models, the EOR is the legal employer on paper, while your company directs the work and makes termination decisions. Local law and the EOR contract will determine who funds and who processes severance, but authorities will look at the substance of the relationship if a dispute arises. You should ensure your EOR agreement clearly allocates severance costs, calculation methods, and documentation responsibilities to avoid gaps or double exposure.

Be 100 Percent Compliant in Offering Severance with Playroll

Managing severance in Gabon means juggling statutory rules, collective agreements, and individual contracts, all while keeping clean records for inspections or disputes. Playroll helps your team standardize how you calculate notice, severance, and final pay, so each termination follows a repeatable, documented process. With localized expertise, you can confidently align your internal policies with Gabon’s Labour Code and market practice, reducing the risk of unexpected liabilities.

Playroll’s Employer of Record solution lets you hire in Gabon without setting up a local entity, while still staying compliant with severance and termination rules. Our team tracks regulatory changes, flags when severance is due, and ensures payments are made on time and correctly documented. That way, your managers can focus on performance and workforce planning, while Playroll handles the legal and payroll details behind every exit.