What Severance Pay Rules Must Employers Follow in Mali?

Which Employees Qualify for Severance Pay?

• Employees with at least one year of continuous service whose contracts are terminated by the employer for reasons other than serious or gross misconduct.
• Employees on open-ended (CDI) contracts who are dismissed for economic reasons, reorganization, or individual reasons not linked to serious fault.
• Fixed-term (CDD) employees whose contracts are ended early by the employer without a legally valid reason or agreed early-termination clause.
• Employees who have completed their probationary period and are dismissed with notice or payment in lieu of notice.
• Employees who are not validly classified as independent contractors or agency workers and are deemed to be your direct employees under Malian law.
• Employees who are dismissed following incapacity or unsuitability where the law or a collective agreement grants severance rights.

What Are the Legal Timelines for Paying Severance?

In Mali, the Labour Code expects you to settle all termination-related payments, including severance, at the end of the employment relationship or within a very short, reasonable period. In practice, employers typically pay severance together with the final paycheck, which is often processed on the last working day or within a few days after termination. Collective agreements or company policies may set more precise deadlines, and those become binding once adopted. To stay safe, your company should aim to calculate and pay severance no later than the normal payroll cycle following the employee’s last day. Always document the calculation, obtain a signed receipt, and keep proof of payment in case of inspection or dispute.

What Penalties Apply if Severance Is Not Paid Correctly?

If you fail to pay severance correctly in Mali, you expose your company to labour inspector intervention, back-pay awards, and potential damages before the courts. Disputes are usually brought before the labour tribunal, which can review your calculations, reclassify the termination, and order additional compensation if the dismissal is found unfair or abusive.

• Courts can order payment of unpaid severance plus legal interest for late payment.
• You may be required to pay damages for unfair dismissal on top of statutory severance.
• Labour inspectors can issue formal notices and refer persistent non-compliance to the prosecutor.
• Non-compliance can trigger administrative fines and, in serious cases, criminal penalties for legal representatives.
• Reputational damage and strained relations with unions or staff representatives can follow public disputes.

Does Outsourcing Employment via an EOR Change Severance Liability?

Using an Employer of Record (https://www.playroll.com/employer-of-record) in Mali can shift day-to-day HR administration and payroll to the EOR, but it does not remove the underlying legal obligations around severance. The EOR is typically the formal employer on paper and must apply Malian Labour Code rules, collective agreements, and any company-level policies when calculating termination pay. However, your company usually decides when and why to terminate, so you remain economically responsible for funding severance and any dispute-related costs under your service agreement. If the EOR misapplies the law, local authorities and courts may still look to both the EOR and your company to protect the employee’s rights. Clear contracts, accurate instructions, and regular compliance checks with your EOR partner are essential.

Be 100 Percent Compliant in Offering Severance with Playroll

Managing severance in Mali means juggling statutory rules, collective agreements, and local practice, all while keeping clean documentation for inspectors and courts. Playroll helps your team translate Malian Labour Code requirements into clear, repeatable processes, from tracking seniority to applying the right percentage per year of service. You get locally compliant contracts, standardized termination workflows, and on-the-ground expertise so you do not have to interpret every article of the law yourself.

With Playroll as your global employment partner, you can budget for severance in advance, avoid last-minute calculation errors, and ensure payments are made on time through compliant local payroll channels. Our team monitors legal changes in Mali, coordinates with Employer of Record structures where needed, and provides audit-ready records for every termination. That way, your company can exit employees fairly, protect its reputation, and reduce the risk of costly disputes.