Is Severance Pay Mandatory in Mauritania?
Yes, severance pay is generally mandatory in Mauritania under the Labour Code (notably Law No. 2004-017 and related decrees) when you dismiss an employee without serious misconduct and they have qualifying service. Severance is usually calculated based on length of continuous service and the employee’s average wage, with higher protection for workers on indefinite-term contracts.
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Which Employees Qualify for Severance Pay?
- Employees on indefinite-term contracts dismissed for reasons other than serious misconduct generally qualify for statutory severance.
- Workers must usually have completed a minimum period of continuous service with your company, often at least one year, to be eligible.
- Employees terminated for economic, organizational, or non-disciplinary reasons are typically entitled to severance benefits.
- Staff who resign without employer fault or who are dismissed for proven gross or serious misconduct usually do not qualify for severance.
- Fixed-term employees may only receive severance if the contract is ended early by the employer without valid cause or as provided in the contract.
- Collective bargaining agreements or company policies can extend severance rights to additional categories of employees beyond the legal minimum.
What Are the Legal Timelines for Paying Severance?
In Mauritania, 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 very short, reasonable period. In practice, employers aim to pay severance on the employee’s final working day or by the next regular payroll run to avoid disputes. Any delay can be treated by courts or labour inspectors as a breach of your payment obligations. To stay safe, document the calculation, obtain a signed receipt, and keep proof of bank transfer or cash payment. Where a collective agreement sets a specific deadline, you should follow the stricter of the statutory and contractual timelines.
What Penalties Apply if Severance Is Not Paid Correctly?
If your company fails to pay severance correctly in Mauritania, you risk financial, administrative, and reputational consequences. Labour inspectors can intervene, and employees may bring claims before the competent labour court to recover unpaid amounts plus additional sums. Non-compliance can also complicate future workforce reductions or regulatory interactions, especially if patterns of underpayment emerge.
- Courts can order you to pay outstanding severance plus interest or damages.
- Labour authorities may impose administrative fines or sanctions for repeated breaches.
- You may face reinstatement orders or higher compensation where dismissal is found to be abusive.
- Disputes can trigger audits of your wider HR and payroll practices.
- Reputational damage can harm hiring, retention, and relations with unions or staff representatives.
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 severance administration, but it does not remove your need to respect Mauritanian law. In most EOR models, the EOR is the legal employer on paper and is responsible for calculating and paying severance according to the Labour Code and any applicable collective agreements. However, your company typically funds these costs through service fees or pass-through charges, and you remain the economic decision-maker behind any termination. If the structure is challenged, authorities may look through the arrangement and hold your business jointly responsible for unlawful dismissals. Clear contracts with the EOR and careful documentation of termination reasons are essential to manage this shared risk.
Be 100 Percent Compliant in Offering Severance with Playroll
Working with Playroll helps your team translate Mauritanian severance rules into clear, repeatable processes. We track statutory changes, local case law trends, and collective agreements so your severance calculations align with current legal expectations, not outdated assumptions. Your managers get practical guidance on eligibility, notice, and documentation so that every termination is handled consistently and defensibly.
Playroll also builds severance into your broader employment cost planning, so you are not surprised by payouts when contracts end. From pre-termination risk checks to final payment support and record-keeping, we help your company reduce disputes and pass inspections with confidence. That lets your HR and finance teams focus on strategy while staying fully compliant in Mauritania.

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