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Severance pay in 2016

What severance pay am I entitled to if I resign or enter into a “termination by agreement”? This is one of our clients’ frequent questions.

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The Labour Code takes such situations into account and clearly stipulates the amount of severance pay in case of termination of employment without cause. However, it is a minimum amount, so no one and nothing prevents an employer from paying an employee a higher severance pay.

When is severance pay pay payable and how much is it?

The minimum amount of severance pay is guaranteed according to the number of years of service. Employees who have been with their employer for less than one year will receive a severance payment of at least one month’s average earnings. If the employment relationship lasts for more than one year but less than two years, at least twice the average earnings are due. Finally, if the employment relationship lasted more than two years, severance pay of at least three times the average earnings may be claimed.

Délka pracovního poměru Výše odstupného
Méně než jeden rok (méně než 365 dní) nejméně 1 x průměrný měsíční výdělek
Více než jeden rok, ale méně než dva roky nejméně 2 x průměrný měsíční výdělek
Více než dva roky nejméně 3 x průměrný měsíční výdělek

Average earnings are determined from gross wages. Basically, it is the average of the earnings for the last completed quarter. This means that if the average earnings of, for example, Mr. Vochomůrka at the end of September are considered, the quarter April to June is taken. If it is for the end of October, it would be for July to September.

I have given notice from my job

When you quit your job, we can help you defend yourself against your employer’s actions and make sure you get everything you’re entitled to from them. This includes, for example, any wages or severance pay you are owed. We provide assistance throughout the country and at a predetermined price.

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I have given notice from my job

When you quit your job, we can help you defend yourself against your employer’s actions and make sure you get everything you’re entitled to from them. This includes, for example, any wages or severance pay you are owed. We provide assistance throughout the country and at a predetermined price.

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Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

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