What Severance Pay Rules Must Employers Follow in Ivory Coast?

Which Employees Qualify for Severance Pay?

• Employees with at least 12 months of continuous service whose contracts are terminated by the employer for reasons other than serious misconduct.
• Employees on open-ended (CDI) contracts dismissed for economic reasons or for personal reasons not amounting to gross or serious misconduct.
• Fixed-term (CDD) employees whose contracts are ended early by the employer without a legally valid reason or without respecting the contract terms.
• Employees who are not in a probationary period at the time of termination and who have met any notice requirements or have notice paid in lieu.
• Employees who do not qualify as having committed serious or gross misconduct as defined by the Labour Code or applicable collective agreement.
• Employees covered by a collective bargaining agreement or company policy that grants more generous severance than the statutory minimums.

What Are the Legal Timelines for Paying Severance?

In Ivory Coast, the Labour Code requires you to settle all termination-related payments, including severance, at the end of the employment relationship, typically on or before the employee’s last working day. In practice, many employers aim to pay within a few days of the effective termination date, often aligned with the final payroll cycle. Any contractual or collective agreement deadlines that are shorter than this statutory expectation must be respected. To reduce disputes, your company should document the calculation and payment date in the termination letter and obtain a signed receipt from the employee.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in Ivory Coast, you risk both financial and legal consequences under the Labour Code and, where applicable, collective agreements. Non-compliance can trigger labour inspector intervention, court-ordered back payments, and additional damages for unfair or abusive dismissal. It can also damage your reputation with employees, unions, and regulators, making future workforce changes more difficult to manage.

• Administrative fines may be imposed by labour authorities for breaches of termination and payment rules.
• Courts can order payment of outstanding severance plus interest and, in some cases, additional compensation.
• An unlawful dismissal finding can lead to reinstatement orders or significant damages in lieu of reinstatement.
• Persistent non-compliance can expose your company to audits, stricter oversight, and reputational harm.
• Disputes may delay restructuring plans and increase legal and HR costs.

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 obligation to comply with Ivory Coast severance rules, but it can shift day-to-day liability and administration. In an EOR model, the EOR is the legal employer responsible for calculating, documenting, and paying statutory and contractual severance. Your company still carries commercial and reputational risk if instructions lead to unlawful termination or discriminatory practices. A well-structured EOR agreement should clearly allocate responsibilities for termination decisions, severance funding, and dispute handling under Ivorian law.

Be 100 Percent Compliant in Offering Severance with Playroll

Playroll helps your company navigate Ivory Coast’s severance rules by standardising how you collect data on tenure, salary, and contract type before any termination decision. Our team tracks changes to the Labour Code and local collective agreements, so your severance calculations reflect current minimums and any enhanced entitlements. You get clear breakdowns of notice, severance, unused leave, and other final-pay elements, reducing the risk of underpayment or disputes.

When you use Playroll as your global employment partner or via its EOR solution, we manage the local payroll, documentation, and timing of severance payments end-to-end. Your team focuses on business decisions while we coordinate compliant termination letters, statutory filings, and employee communication. This combination of local expertise and centralised workflows helps you stay audit-ready and maintain a fair, consistent offboarding experience across all Ivorian hires.