What Severance Pay Rules Must Employers Follow in Niger?

Which Employees Qualify for Severance Pay?

• Employees with an indefinite-term contract (CDI) who are dismissed for reasons other than serious or gross misconduct generally qualify for statutory severance.
• Employees terminated for economic or redundancy reasons usually qualify, provided legal procedures for redundancy are followed.
• Employees with at least one year of continuous service with your company typically benefit from severance protections under the Labour Code.
• Fixed-term contract (CDD) employees may be entitled to compensation if the contract is ended early without valid cause or not renewed in bad faith.
• Employees who resign for employer fault (constructive dismissal) can, in some cases, claim severance similar to a dismissal without cause.
• Employees covered by a collective agreement or company policy that grants more generous severance terms qualify for those enhanced benefits.

What Are the Legal Timelines for Paying Severance?

In Niger, 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 aim to pay severance at the same time as the final salary, unused leave, and other entitlements. Where a works inspector or labor authority is involved in the dismissal process, they may expect proof that severance has been calculated and is ready to be paid. To stay safe, your company should target payment on or before the employee’s last working day, and never later than the next regular payroll cycle. Any delay should be documented, justified, and agreed in writing with the employee where possible.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in Niger, you risk both financial and administrative consequences. The Labour Code allows labor inspectors and courts to order back payment of any unpaid severance, plus potential damages and interest. Non-compliance can also complicate future dismissals, damage your reputation with authorities, and increase the likelihood of audits or disputes. Systematic underpayment or non-payment may be treated as a serious breach of labor law.

• Labor authorities can order payment of all outstanding severance plus legal interest.
• Courts may award additional damages for unfair or abusive dismissal.
• You may face administrative fines or sanctions for repeated or serious violations.
• Non-compliance can trigger inspections and closer monitoring by labor inspectors.
• Disputes over severance can lead to costly litigation and reputational damage.

Does Outsourcing Employment via an EOR Change Severance Liability?

Using an Employer of Record (https://www.playroll.com/employer-of-record) in Niger does not remove the need to comply with local severance rules, but it can shift who is technically responsible for the employment relationship. In most EOR models, the EOR is the legal employer on paper and is directly responsible for calculating and paying severance under Nigerien law. However, your company, as the client, usually bears the economic cost and must approve or fund any severance package. If you direct an unlawful dismissal or push for non-compliant terms, you can still face commercial claims, reputational risk, and potential joint-liability arguments. Clear contracts with your EOR and documented decision-making are essential to show that severance was handled lawfully and fairly.

Be 100 Percent Compliant in Offering Severance with Playroll

Playroll helps your company navigate Niger’s severance rules by combining local legal insight with practical payroll execution. Our team tracks changes to the Labour Code, collective agreements, and case law so your severance calculations reflect current statutory minimums and any market-standard enhancements. We help you classify the reason for termination, confirm eligibility, and model different severance scenarios before you act.

When you use Playroll as your global partner, we coordinate with in-country experts to ensure severance is paid on time, in the correct currency, and with the right supporting documentation. We also help you standardize internal policies so managers follow consistent, compliant steps for dismissals in Niger and across your other locations. That way, your HR team can focus on people decisions while we handle the legal and payroll details behind every termination.