What Severance Pay Rules Must Employers Follow in South Sudan?

Which Employees Qualify for Severance Pay?

• Employees with an employment contract who are dismissed without valid reason or due process under the Labour Act, 2017.
• Employees whose roles are terminated due to redundancy, restructuring, or economic downsizing initiated by your company.
• Employees with continuous service who do not receive the full statutory or contractual notice required before termination.
• Employees on fixed-term contracts that are ended early by your company without a lawful ground or agreed break clause.
• Employees who lose their jobs because your company closes or relocates in a way that makes continued work impossible.
• Employees who are entitled to severance or separation benefits under a collective agreement or company policy that your company has adopted.

What Are the Legal Timelines for Paying Severance?

In South Sudan, the Labour Act, 2017 expects you to settle all terminal benefits, including any severance owed, promptly at the end of employment. In practice, you should aim to pay severance on or before the employee’s final working day, or within a short, clearly defined period stated in your contracts or policies. Delays increase the risk of disputes, labour complaints, and potential court orders for additional compensation. To stay safe, document the calculation, obtain written acknowledgment of payment, and keep proof of bank transfers or receipts. Where a dispute exists, pay the undisputed portion immediately while you resolve any contested balance in writing.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in South Sudan, you risk statutory non-compliance, labour-office intervention, and potential court awards. The Labour Act, 2017 allows employees to challenge unlawful terminations and underpayments, and authorities can order back pay, damages, and other corrective measures that quickly exceed the original severance amount.

• Labour authorities may order you to pay outstanding severance plus any other terminal benefits.
• Courts can award additional compensation or damages for unfair dismissal or breach of contract.
• Your company may face fines or sanctions for violating provisions of the Labour Act, 2017.
• Non-compliance can trigger inspections, reputational damage, and strained relations with staff and unions.
• Persistent breaches increase the risk of litigation costs and potential restrictions on your business operations.

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 South Sudan’s Labour Act, 2017, but it can shift day-to-day compliance work to a specialist. In a typical EOR model, the EOR is the legal employer on paper and is responsible for calculating and paying severance in line with local law and any contract terms. However, your company remains the de facto directing entity and can still be drawn into disputes if terminations are mishandled or discriminatory. You should ensure your EOR contract clearly allocates severance responsibilities, funding, approval workflows, and dispute-handling procedures. Always coordinate termination decisions with the EOR early so they can manage notice, documentation, and payouts correctly.

Be 100 Percent Compliant in Offering Severance with Playroll

Managing severance in South Sudan means aligning your contracts, policies, and HR practices with the Labour Act, 2017 while also reflecting market norms for senior and scarce talent. Playroll helps your team standardize templates, define clear termination procedures, and model different severance scenarios so you understand the cost and risk before you act. With centralized records and local expertise, you can show regulators and employees that your decisions are documented, consistent, and fair.

Playroll’s global platform also lets you manage South Sudan employees alongside staff in other countries without losing sight of local rules. You can rely on Playroll to coordinate with in-country experts, keep track of changing labour requirements, and execute compliant final payments through secure payroll channels. That way, your managers can focus on performance and workforce planning while Playroll handles the technical details of severance compliance.