EOR Termination Reference Guide · 2026

Know your termination risk before you hire.

38 countries · Statutory notice, severance formulas, resolution timelines, and complexity ratings.

38
Countries covered
5
Very High complexity
18mo
Max resolution (Japan)
65wk
Max notice (Belgium)

38 countries shown

Europe
12 countries
9mo
Max resolution (France & Italy)
65wk
Max notice (Belgium)
1
Very High complexity (France)
Americas
8 countries
12mo
Max resolution (Argentina)
18mo+
Max proceedings (Argentina)
2
Very High complexity (Brazil & Argentina)
Asia-Pacific
12 countries
18mo
Max resolution (Japan)
2
Very High complexity (Japan & Indonesia)
4
Legal dismissal types (Japan only)
Middle East & Africa
6 countries
8mo
Max resolution (Nigeria)
2022
UAE Labour Law Reform
6
Countries covered
🇫🇷 France Very High
Notice
1–3 months
Severance
25% salary/yr
Resolution
3–9 months
  • Collective bargaining agreements significantly impact terms
  • Redundancy consultation requirements are extensive
  • Extended sick leave tactics frequently used by employees
  • Direct claims against client entity are common
  • Employer charges of 28–60% on top of gross salary
  • Termination through EOR requires dedicated local employment counsel
🇩🇪 Germany High
Notice
4 wks–7 months
Severance
0.5× salary/yr
Resolution
3–6 months
  • 18-month EOR cap (AÜG) — employees must transition or terminate beyond this period
  • Works council consultation may be required for companies with 5+ employees
  • Strict unfair dismissal rules apply
  • Labour leasing licence (AÜG) required — operating without one creates retroactive liability
🇳🇱 Netherlands High
Notice
1–4 months
Severance
1/3 month/yr
Resolution
2–5 months
  • UWV or court approval required for dismissal
  • Redundancy route is preferred
  • Legal counsel is almost universal in termination proceedings
  • Labour leasing licence required — absence invalidates the arrangement
🇧🇪 Belgium High
Notice
Up to 65 weeks
Severance
Notice period equivalent
Resolution
3–6 months
  • One of the longest statutory notice periods in the world
  • Notice period equivalents can translate to very large cash payouts
  • EOR requires specific written mandate structure
  • EOR client must maintain written mandate control agreement
  • Labour leasing licence required
🇪🇸 Spain High
Notice
15 days–3 months
Severance
20–45 days/yr
Resolution
2–5 months
  • Unfair dismissal carries 45 days/year penalty
  • Workers’ committee consultation required for collective actions
  • High litigation rate across all employment levels
🇮🇹 Italy High
Notice
Varies by CCNL
Severance
TFR ~1 month/yr
Resolution
3–9 months
  • Collective bargaining agreements (CCNL) govern most terms
  • Individual dismissal is heavily scrutinised
  • Reintegration orders are common in unfair dismissal cases
🇬🇧 United Kingdom Medium
Notice
1 wk/yr (up to 12)
Severance
0.5–1.5 wks/yr
Resolution
1–3 months
  • Common law notice often far exceeds statutory minimums
  • Settlement agreements (COT3) are typical
  • IR35 misclassification risk for contractors
🇸🇪 Sweden Med-High
Notice
1–6 months
Severance
No statutory (union applies)
Resolution
2–5 months
  • Seniority (LAS) rule: last-in first-out applies
  • Union consultation is mandatory
  • Strong reinstatement rights if process not followed correctly
🇨🇭 Switzerland Medium
Notice
1–3 months
Severance
No statutory
Resolution
1–3 months
  • No labour leasing licence requirement at federal level but cantons vary
  • Short process if contract is clear
🇵🇹 Portugal Med-High
Notice
15–75 days
Severance
12–20 days/yr
Resolution
2–4 months
  • Recent labour code reforms tightened fair dismissal requirements
  • Court challenges remain common
🇵🇱 Poland Medium
Notice
2 wks–3 months
Severance
1–3 months (redundancy only)
Resolution
1–3 months
  • Severance only mandatory for group dismissals or redundancy
  • Individual cause dismissals require a thorough documentation trail
🇩🇰 Denmark Med-High
Notice
1–6 months
Severance
1–3 months (long tenure)
Resolution
2–4 months
  • Collective agreements govern most terms
  • Salaried Employee Act (FL) provides substantial protections for white-collar workers
🇺🇸 United States Low-Med
Notice
No statutory requirement
Severance
None (at-will)
Resolution
Days–3 months
  • Litigation risk varies by state (CA & NY highest)
  • Discrimination claims can extend timeline significantly
  • WARN Act applies for mass layoffs
  • California, New York, and New Jersey have significantly higher litigation environments
🇧🇷 Brazil Very High
Notice
30 days + 3 days/yr
Severance
FGTS 40% + 1 mo/yr
Resolution
3–8 months
  • One of the most employee-protective frameworks globally
  • Multiple settlement components must all be settled simultaneously
  • Labour court filing is common and fast
  • FGTS penalty of 40% applies on unjust dismissal
🇲🇽 Mexico High
Notice
30 days
Severance
90 days + 20 days/yr + premium
Resolution
2–5 months
  • Unjustified dismissal is significantly more expensive
  • Severance includes constitutional indemnity
  • Labour union involvement is common
🇨🇦 Canada Med-High
Notice
2–8 weeks statutory
Severance
None statutory (common law)
Resolution
2–9 months
  • Common law notice far exceeds statutory (often 1 month/year)
  • Quebec governed by separate Civil Code
  • Wrongful dismissal claims are frequent
🇦🇷 Argentina Very High
Notice
15 days–2 months
Severance
1 month/yr (capped)
Resolution
4–12 months
  • Economic instability creates inflation-adjusted liability uncertainty
  • Labour courts strongly favour employees
  • Reinstatement orders are common
  • Severance amounts subject to inflation adjustment
  • Legal proceedings can extend to 18+ months — budget conservatively
🇨🇴 Colombia High
Notice
Varies by contract type
Severance
CESTANÍAS + interest
Resolution
2–6 months
  • Mandatory annual contribution to severance fund
  • Just-cause dismissal list is narrow
  • Court confirmation required in some cases
🇨🇱 Chile Medium
Notice
30 days
Severance
1 month/yr (capped at 11)
Resolution
1–3 months
  • Defined list of fair dismissal causes
  • Procedural mistakes invalidate cause leading to maximum severance
  • Relatively predictable process
🇵🇪 Peru Medium
Notice
6 days (min)
Severance
1.5 months/yr (capped at 12)
Resolution
1–4 months
  • Arbitrary dismissal triggers full indemnity
  • Documentation of cause is essential
  • Labour authority involved in collective cases
🇯🇵 Japan Very High
Notice
30 days (or pay in lieu)
Severance
De facto 6–12 months
Resolution
3–18 months
  • Only 4 legal dismissal types recognised
  • Average tenure 12.4 years — exit packages are consistently high
  • Voluntary resignation heavily incentivised
  • Labour Tribunal fast-track available
🇨🇳 China High
Notice
30 days
Severance
1 month/yr
Resolution
2–6 months
  • Documentation trail is critical
  • Unions (ACFTU) involved in collective cases
  • Labour arbitration mandatory before court
  • High reinstatement rate in unfair dismissal cases
🇮🇳 India High
Notice
15 days–3 months
Severance
15 days/yr (100+ employees)
Resolution
2–8 months
  • Industrial Disputes Act creates significant retrenchment obligations for larger employers
  • Notice and prior government approval required at scale
🇦🇺 Australia Medium
Notice
1–5 weeks
Severance
4–16 weeks (redundancy)
Resolution
1–3 months
  • Unfair dismissal claims lodged through Fair Work Commission
  • 100+ modern awards add complexity
  • Small business rules differ from standard rules
🇸🇬 Singapore Low-Med
Notice
1 week–1 month
Severance
No statutory
Resolution
1–2 months
  • EORs banned from sponsoring work visas (2024)
  • Local Qualifying Salary threshold increasing to S$1,800 from July 2026
  • Generally business-friendly termination environment
🇰🇷 South Korea High
Notice
30 days (or pay in lieu)
Severance
1 month/yr
Resolution
2–6 months
  • Strong just-cause requirement
  • 30-day advance notice is mandatory
  • Labour unions are active
  • Reinstatement orders common in unfair dismissal cases
🇮🇩 Indonesia Very High
Notice
30 days
Severance
UP (2×) + UPMK + UAH
Resolution
4–12 months
  • One of the most complex termination frameworks globally
  • Bipartite negotiation required first then mediation/arbitration/court
  • High settlement costs
  • Three-component formula (UP, UPMK, UAH) must all be calculated and paid
🇵🇭 Philippines High
Notice
30 days
Severance
0.5 month/yr
Resolution
2–6 months
  • Authorised vs. just cause distinction is critical
  • DOLE filing required for retrenchment/closure
  • Illegal dismissal carries full backwages liability
🇭🇰 Hong Kong Medium
Notice
1 month (standard)
Severance
2/3 month/yr (capped)
Resolution
1–3 months
  • Severance vs. Long Service Payment (LSP) distinction is important
  • Non-compete enforcement weaker than other APAC markets
  • Labour Tribunal is relatively accessible
🇻🇳 Vietnam High
Notice
30–45 days
Severance
0.5 month/yr
Resolution
2–5 months
  • Labour contract types matter significantly
  • Labour union consultation required
  • MOLISA involvement for collective dismissals
  • Increasing claims trend observed
🇹🇭 Thailand Med-High
Notice
Up to 30 days
Severance
30–400 days (tenure-based)
Resolution
1–4 months
  • Statutory severance scale increases steeply with tenure
  • Unfair dismissal adds equivalent amount
  • Compensation payment preferred to avoid litigation
🇹🇼 Taiwan Medium
Notice
10–30 days
Severance
0.5 month/yr (qualifying)
Resolution
1–3 months
  • Prior notice or pay in lieu is mandatory
  • Severance only for qualifying terminations
  • Labour authorities oversee disputes; mediation first
🇦🇪 United Arab Emirates Low-Med
Notice
30 days (standard)
Severance
21 days/yr (1–5 yrs); 30 days after
Resolution
1–2 months
  • New labour law (2022) removed unlimited contracts
  • End-of-service gratuity is mandatory
  • Expat-heavy workforce; visa cancellation tied to termination
🇸🇦 Saudi Arabia Medium
Notice
30–60 days
Severance
0.5 mo/yr (yrs 1–5); 1 mo after
Resolution
2–4 months
  • Saudisation (Nitaqat) quotas affect workforce planning
  • Employee can claim GOSI
  • Foreign workers subject to Iqama visa cancellation on exit
🇮🇱 Israel Med-High
Notice
1 day/month (up to 1 month)
Severance
1 month/yr
Resolution
2–5 months
  • Advanced notice periods are mandatory and non-waivable
  • Severance Fund (Keren Hishtalmut) partially offsets employer liability if contributions have been made
  • Labour courts are employee-friendly
🇿🇦 South Africa Med-High
Notice
1–4 weeks (statutory min)
Severance
1 week/yr (BCEA)
Resolution
2–6 months
  • CCMA conciliation mandatory before arbitration/court
  • Substantive and procedural fairness both required
  • Section 197 transfer obligations apply
🇳🇬 Nigeria High
Notice
Varies (contract-based)
Severance
Gratuity per contract (no statutory floor)
Resolution
2–8 months
  • No single federal labour law framework
  • State-level variation is significant
  • Labour unions active in formal sector
  • Documentation trail critical for cause
🇰🇪 Kenya Med-High
Notice
28 days minimum
Severance
15 days/yr (redundancy)
Resolution
2–5 months
  • Industrial Court (ELRC) handles disputes
  • Redundancy notification to labour officer required
  • Unfair dismissal carries reinstatement or compensation
⚠ Important: All figures represent statutory minimums or market practice baselines. Individual cases may exceed these estimates based on tenure, seniority, cause of termination, and jurisdiction-specific circumstances. This guide does not constitute legal advice. Always engage local counsel for individual cases.
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