Table 1: Terminal Compensation Requirements (Selected Countries)
Country
Severance Pay
Pay in Lieu of Notice
Requirement
Requirement
Typical Total Amount Owed
to Worker with 5 Years of
Service (including unused
vacation, bonuses, etc.)
Bangladesh
1 month’s wages per year of service.17
1 month’s wages if formally
retrenched, otherwise 1–4
months’ wages depending on
circumstances.18
If formally retrenched, US$36419
Cambodia
Long-term contract (“UDC”)
employee: 7–90 days’ wages
based on length of service.22
If dismissal with valid reason
(but no serious misconduct):
US$1,290
Short-term contract (“FDC”)
employee: 0–15 days’ wages
based on length of contract.23
If dismissal without valid reason:
US$1,890
El Salvador
30 days’ wages per year of service.24
None.
Payment of severance and
pro-rated vacation and year-end
bonus: US$2,00925
Dominican Republic
Long-term contract (“UDC”) employee:
15 days’ wages per year of service
before 2019, plus 15 days,20 plus
equal amount of damages if dismissal
without valid reason.
Short-term contract (“FDC”)
employee: wages for remaining
term of contract, plus 5% of
total wages earned under
current contract.21
India
Indonesia
Jordan
(Migrant workers on
fixed-term contracts)
If otherwise dismissed without
cause: US$541
In case of employer’s bankruptcy:
15 days’ wages per year of service.26
In case of employer’s bankruptcy:
None.
In case of employer’s bankruptcy:
US$718
Otherwise, for employee with
5+ years of service, 23 days’
wages for each year; for 1–4
years of service, 21 days’ wages
for each year; for 6 months–
1 year, 13 days’ wages per year.27
Otherwise, for a worker with
1+ years of service or
more, 28 days’ wages.28
Otherwise: US$1,288
15 days’ wages per year of service,29
In cases of retrenchment,
plus, for a worker with 5+ years of
30 days’ wages.30
service, gratuity of 15 days’ wages
for each year of service.
In other cases of closure,
60 days’ wages.31
If ordinary retrenchment: US$978
If factory closes: US$1,095
1 month’s wages, plus 1 month’s
None.
wages per year of service up to 9
months’ wages; plus 1 month’s wages
for every 3 full years of service, to
an additional 8 months; plus, for
a worker who ordinarily receives
housing or medical allowances, an
additional 15% of the total amount,32
and in cases before October 2020,
the total doubled if the termination
was not due to bankruptcy or 2 years
of financial losses for the employer.33
In case of bankruptcy, 2 years of
financial losses for employer, and
all cases after October 2020:
US$1,448
Wages for the remainder of fixedNone.
term contract.34
If employed until end of contract:
US$166 (unused annual leave
only)
In other cases before October
2020: US$2,896
Benefit from security agency after
completion of social initial
contract (3 years): US$1,11735
Benefit from social security
agency: US$1,862
Myanmar
2 weeks’ to 13 months’ wages
depending on length of service.36
30 days’ wages.37
US$438
Thailand
20+ years of service: 400 days’ wages;
10–19 years: 300 days’ wages;
6–9 years: 240 days’ wages;
3–5 years: 180 days’ wages;
1–3 years: 90 days’ wages;
6–12 months: 30 days’ wages.38
1 pay period’s wages.39
US$2,247
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Fired, Then Robbed
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