What Severance Pay Rules Must Employers Follow in Haiti?

Which Employees Qualify for Severance Pay?

• Employees on indefinite-term contracts who are dismissed without serious misconduct after completing at least three months of continuous service.
• Employees whose fixed-term contracts are ended early by the employer without a legally valid reason or required notice.
• Employees terminated for economic, organizational, or technological reasons where the role is eliminated or reduced.
• Employees who resign for employer fault that would justify termination (constructive dismissal) and can show serious breach.
• Employees who are not in a probationary period and have met any statutory or contractual minimum service thresholds.
• Employees who lose their jobs due to business closure, relocation, or change of ownership where continuity obligations are not respected.

What Are the Legal Timelines for Paying Severance?

In Haiti, the Labour Code expects you to settle all final amounts - including earned wages, unused statutory vacation, and any severance owed - promptly at the end of the employment relationship. In practice, employers should aim to pay severance on the employee’s last working day or within a few business days of termination. Where calculations are complex, you should document the breakdown and pay no later than the end of the next regular payroll cycle. Any delay should be justified in writing and kept as an internal record. To stay compliant and avoid disputes, your company should adopt a written policy that sets a clear internal deadline for severance payments and consistently follow it.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in Haiti, you risk financial, administrative, and reputational consequences. Labour inspectors can investigate complaints, and employees can bring claims before the labour courts to recover unpaid amounts. Courts may order you to pay the severance due, plus interest and, in some cases, additional damages for abusive or unjustified termination. Non-compliance can also trigger scrutiny of your broader employment practices.

• You may be ordered to pay all outstanding severance and related benefits.
• Courts can award interest on late payments and, in some cases, damages.
• Labour authorities may impose administrative fines or corrective measures.
• Disputes can lead to legal costs and management time spent on litigation.
• Repeated non-compliance can damage your employer brand and employee relations.

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, but it does not remove the need to respect Haitian severance rules. In a typical EOR model, the EOR is the legal employer on paper and is responsible for calculating and paying severance in line with the Haitian Labour Code. However, your company usually directs the decision to terminate, so you will often bear the commercial cost and risk through your contract with the EOR. If the termination is mishandled or appears abusive, both your company and the EOR may face claims or reputational damage. A well-drafted EOR agreement should clearly allocate who funds severance, who manages disputes, and how compliance is monitored.

Be 100 Percent Compliant in Offering Severance with Playroll

Managing severance in Haiti means tracking contract types, seniority, and reasons for termination so you can apply the Labour Code rules consistently. Your team also needs to document performance issues, economic justifications, and notice periods to defend decisions if an employee challenges a dismissal. With Playroll, you get structured processes, local expertise, and clear records that make it easier to calculate and pay severance correctly every time.

Playroll’s platform helps your company standardize termination workflows, from approvals and documentation to final-pay calculations and payment execution. By centralizing data and using local legal input, you reduce the risk of underpaying or overlooking statutory entitlements. That way, you protect your business from avoidable disputes and keep your exits professional, compliant, and predictable for your global team.