What Severance Pay Rules Must Employers Follow in Togo?

Which Employees Qualify for Severance Pay?

• Employees with an open-ended (CDI) contract who are dismissed for reasons other than serious or gross misconduct generally qualify for statutory severance.
• Employees terminated for economic or redundancy reasons are typically entitled to severance, subject to required procedures and approvals.
• Employees with at least one year of continuous service usually benefit from full statutory severance protections.
• Fixed-term (CDD) employees may receive compensation if the contract is ended early without valid cause, often calculated similarly to severance or remaining wages.
• Employees covered by a collective bargaining agreement or company policy that grants more generous severance terms qualify for those enhanced benefits.
• Senior managers and executives are covered by the Labour Code but may also have individual contracts that specify higher severance entitlements.

What Are the Legal Timelines for Paying Severance?

In Togo, severance is expected to be paid at the time the employment relationship ends, alongside the employee’s final paycheck and other terminal benefits. In practice, your company should aim to calculate and settle severance on or before the last working day, once notice has been served and any garden leave or notice period has run. Where administrative approvals or calculations take longer, payment should still be made within a short, reasonable period after termination, typically within days rather than weeks. Any delay can expose you to claims for unpaid wages, interest, or damages, so it is safer to finalize amounts early. Always document the calculation and obtain a signed receipt from the employee when payment is made.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in Togo, you risk both financial and regulatory consequences. Labour inspectors can investigate complaints, and courts may order you to pay outstanding amounts plus additional compensation. Non-compliance can also damage your reputation with staff and unions, and make future restructurings more difficult to manage.

• Employees can claim unpaid severance, interest, and damages before the labour courts.
• Labour inspectors may impose administrative sanctions or require corrective action.
• Persistent non-compliance can lead to fines and increased scrutiny of your company’s HR practices.
• Disputes over severance can delay restructurings and increase legal and advisory costs.
• Reputational damage can harm recruitment, retention, and relations with unions or staff representatives.

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 HR administration, but it does not remove the need to respect Togo’s severance rules. In most EOR models, the EOR is the legal employer on paper, while your company directs the employee’s work and decisions about termination. Local law will still require that any dismissal be justified and that statutory severance and notice are respected. Your service agreement with the EOR should clearly state who funds severance, how amounts are calculated, and how disputes with employees are handled. Even if the EOR is legally responsible, your company can face commercial and reputational fallout if severance is mishandled.

Be 100 Percent Compliant in Offering Severance with Playroll

Playroll helps your company navigate Togo’s severance rules by combining local legal expertise with structured processes. From the moment you consider a termination, Playroll can flag whether severance is likely to be due, estimate the statutory minimum, and highlight any enhanced rights in contracts or collective agreements. This lets your team budget accurately, plan timelines, and avoid last-minute surprises during offboarding.

Beyond calculations, Playroll standardizes documentation, from notice letters to settlement receipts, and coordinates with local partners where needed. Your company gets clear checklists for approvals, communication, and payment, reducing the risk of disputes or labour inspector scrutiny. With Playroll managing the details, your HR and finance teams can stay focused on strategy while remaining fully compliant with Togo’s severance requirements.