What Severance Pay Rules Must Employers Follow in Sudan?

Which Employees Qualify for Severance Pay?

• Employees engaged under an indefinite (open-ended) employment contract who are dismissed for reasons other than serious misconduct typically qualify for severance.
• Employees whose roles are terminated due to redundancy, restructuring, or economic reasons usually become entitled to severance benefits.
• Employees with at least one year of continuous service with your company are more likely to qualify, with higher entitlements as service length increases.
• Employees who resign for legally justified reasons attributable to the employer, such as substantial breach of contract, may be treated similarly to dismissed employees for severance.
• Employees on fixed-term contracts may qualify if the contract is ended early by the employer without a lawful cause or agreed compensation.
• Employees covered by collective agreements or company policies that promise severance will qualify under those more favorable terms, provided they meet the stated conditions.

What Are the Legal Timelines for Paying Severance?

In Sudan, you should aim to pay all severance and final wage entitlements as soon as employment ends, typically at or shortly after the employee’s last working day. Labour authorities expect prompt settlement, and delays can be treated as non-payment of wages. In practice, many employers target payment within 7 to 14 days of termination to stay clearly compliant. Where a dispute exists over the amount, you should pay the undisputed portion immediately and document the basis for any remaining calculations. Always provide a written breakdown of severance, unused leave, and other terminal benefits to the employee.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in Sudan, you risk wage-claim disputes, labour inspections, and potential court action. Authorities can treat unpaid severance as unpaid wages, which may trigger financial penalties and orders for back payment with possible surcharges. Non-compliance can also damage your reputation with regulators and make future workforce changes more difficult to manage.

• Labour authorities can order payment of all outstanding severance and related terminal benefits.
• Courts may award additional compensation or interest where employees suffer loss from delayed payment.
• Repeated or serious breaches can attract administrative fines and closer inspection of your wider HR practices.
• Non-compliance can lead to employee claims, union disputes, and reputational damage in the local market.
• Poor severance practices can complicate future restructurings and increase the cost of negotiated exits.

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 employment administration, but it does not remove the need to respect Sudanese severance rules. In most EOR structures, the EOR is the legal employer on paper and is responsible for calculating and paying statutory severance. However, your company usually bears the commercial cost and must fund those payments under the service agreement. If the EOR mishandles severance, both the EOR and your company can face legal and reputational exposure. You should therefore ensure your EOR contract clearly allocates severance responsibilities, funding, and dispute-handling procedures.

Be 100 Percent Compliant in Offering Severance with Playroll

Managing severance in Sudan means aligning contracts, HR policies, and day-to-day practices with the Labour Code and any sector rules. Your company needs clear termination procedures, accurate records of service length and salary, and a consistent approach to documenting performance and misconduct. With this foundation, you can distinguish between cases that trigger severance and those that do not, and you can defend your decisions if challenged.

Playroll helps your team operationalize this in a practical way, especially when you employ people in Sudan from abroad. Through our Employer of Record and global payroll tools, we standardize how severance is calculated, documented, and paid, while keeping you aligned with local law and market practice. You stay in control of business decisions, while we handle the compliance details, payment logistics, and audit-ready records.