What Severance Pay Rules Must Employers Follow in Republic of Congo?

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Is Severance Pay Mandatory in Republic of Congo?

Yes, severance pay is generally mandatory in Republic of Congo under the Labour Code (Law No. 45-75, as amended), when you dismiss an employee without serious misconduct and in certain redundancy situations. Severance is usually calculated using the employee’s length of service and average salary, subject to minimums set by law and collective agreements.

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Which Employees Qualify for Severance Pay?

  • Employees with an open-ended (indefinite) contract dismissed for reasons other than serious or gross misconduct.
  • Employees made redundant for economic, technological, or organizational reasons following legal redundancy procedures.
  • Employees with at least the minimum continuous service required by the Labour Code or an applicable collective agreement.
  • Employees whose fixed-term contracts are terminated early by the employer without a legally valid justification.
  • Employees who are dismissed for incapacity or non-culpable reasons, where the law or a collective agreement grants severance.
  • Employees covered by a sectoral collective agreement that provides more generous severance than the statutory minimum.

What Are the Legal Timelines for Paying Severance?

In Republic of Congo, severance is typically due at the end of the employment relationship, alongside the employee’s final salary and accrued benefits. In practice, you should pay severance on or before the employee’s last working day, or within a very short period specified by any applicable collective agreement. Labour authorities expect prompt settlement, especially where dismissal has been authorized or notified to them. Delays can trigger disputes, default interest, and potential penalties. To stay safe, your company should document the calculation and payment date on the final payslip and in the termination letter.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in Republic of Congo, you risk labour inspections, employee claims, and financial exposure. Non-compliance can lead to back payments, damages, and, in serious cases, criminal or administrative sanctions for the company and its legal representatives.

  • Employees can claim unpaid severance, salary arrears, and interest before the labour courts.
  • Courts may award damages for unfair or abusive dismissal in addition to statutory severance.
  • Labour inspectors can order corrective measures and may recommend fines or sanctions.
  • Persistent or bad-faith non-compliance can expose managers to personal liability.
  • Disputes can lead to reinstatement orders, which disrupt workforce planning and budgets.

Does Outsourcing Employment via an EOR Change Severance Liability?

Using an Employer of Record (https://www.playroll.com/employer-of-record) in Republic of Congo does not remove the underlying legal obligation to respect local severance rules. In most structures, the EOR is the formal employer on paper and is responsible for calculating and paying severance under Congolese law. However, your company usually bears the economic cost through your service agreement and may be contractually liable if your instructions cause an unlawful dismissal. Local authorities will focus on who is recorded as the employer in the employment contract and social security registrations. You should ensure your EOR contract clearly allocates severance responsibilities, approval workflows, and documentation standards.

Be 100 Percent Compliant in Offering Severance with Playroll

Managing severance in Republic of Congo means tracking service length, salary components, and the correct legal grounds for termination, all while staying aligned with the Labour Code and any sectoral collective agreements. Playroll helps your team structure compliant terminations by standardizing documentation, notice procedures, and severance calculations across your Congolese workforce. You get clear records for each dismissal, which reduces the risk of disputes and makes labour inspections easier to handle.

With Playroll, you can also rely on local legal and HR expertise to validate that your reasons for termination, timelines, and payments meet Congolese requirements. Our platform centralizes approvals, final payslips, and payment confirmations so you can show that severance was calculated and paid correctly. That way, your company can exit employees fairly, protect its reputation, and avoid unexpected penalties or reinstatement orders.

Handle Terminations Smoothly and Compliantly

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