What Severance Pay Rules Must Employers Follow in Senegal?

Which Employees Qualify for Severance Pay?

• Employees on open-ended (CDI) contracts dismissed for reasons other than serious or gross misconduct.
• Workers with at least the minimum continuous service required by the Labour Code or applicable collective agreement.
• Employees whose positions are terminated for economic, technological, or organizational reasons initiated by your company.
• Staff who are dismissed for personal reasons that do not meet the legal threshold of serious misconduct.
• Employees covered by a collective bargaining agreement that grants severance or termination indemnities.
• Fixed-term (CDD) employees whose contracts are ended early by the employer without a legally valid justification.

What Are the Legal Timelines for Paying Severance?

In Senegal, severance pay is typically due at the effective end date of employment and should be settled when you provide the employee’s final paycheck and work certificates. The Labour Code expects employers to pay termination entitlements without undue delay, so you should aim to finalize calculations before the notice period ends. Many employers pay severance on the last working day or within a few days after contract expiry. Where an internal policy or collective agreement sets a shorter deadline, you must follow the stricter rule. To reduce disputes, document the calculation and obtain written acknowledgment of receipt from the employee.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in Senegal, you risk both financial and administrative consequences. Labour inspectors can intervene, and employees may file claims before the labour court to recover unpaid amounts, plus potential damages. Non-compliance can also expose your company to audits and reputational harm with unions and authorities.

• Labour courts can order payment of outstanding severance plus legal interest.
• You may be liable for damages for abusive or irregular dismissal.
• Authorities can impose fines for breaches of the Labour Code or collective agreements.
• Disputes can lead to reinstatement orders or higher settlement demands.
• Persistent non-compliance can damage your standing with labour inspectors and social partners.

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 need to follow Senegalese severance rules, but it can shift who is the legal employer on paper. In most EOR models, the EOR is the formal employer responsible for payroll, contracts, and statutory termination payments. However, your company still drives business decisions, including performance management and restructuring. If the termination is found unlawful, both the EOR and your company may face claims, especially where you are seen as the economic employer. A clear EOR contract should allocate who funds severance and how risks are shared.

Be 100 Percent Compliant in Offering Severance with Playroll

Managing severance in Senegal means tracking seniority, job category, and the correct percentage rates under the Labour Code and any collective agreement. Playroll helps your team calculate statutory and contractual severance accurately, align with notice rules, and document each termination step. You get localized guidance on when severance is owed, how to structure payouts, and what to record for inspections or audits.

With Playroll as your global employment partner, you can centralize contracts, payroll, and termination workflows while staying aligned with Senegalese law. Our platform and in-country experts help you avoid underpayments, missed deadlines, and procedural errors that trigger disputes. That way, your managers can focus on business decisions while we help you keep severance and broader employment compliance on track.