Exit costs

Notice periods and severance by country

Hiring cost gets all the attention, then the exit bill arrives. This table shows the statutory probation window, notice requirement and severance obligation in each of the 39 markets we cover in depth, so you can price the ending before you plan the start.

Argentina
Probation
3 months for permanent contracts.
Notice
15 days during probation; 1–2 months after based on tenure.
Severance
1 month of best monthly salary per year of service (or fraction >3 months); plus integration month.

Reviewed 2026-06-22

Australia
Probation
Minimum employment period: 6 months (12 months for small employers <15 staff) before unfair dismissal protections kick in.
Notice
1 week (<1 yr), 2 weeks (1–3 yrs), 3 weeks (3–5 yrs), 4 weeks (5+ yrs). Add 1 week if employee is over 45 with 2+ years' service.
Severance
Redundancy pay (NES): 4 weeks (1–2 yrs) up to 16 weeks (9–10 yrs), capped at 12 weeks for 10+ years for non-small businesses. Small businesses (<15 employees) are exempt from redundancy pay obligations.

Reviewed 2026-06-22

Belgium
Probation
Probation periods were abolished in 2014, replaced by reduced notice periods during the first months of employment.
Notice
Tenure-stepped under the Unified Status Act (2014). Examples: 1 week notice in months 1–3, 4 weeks at 1 year, 15 weeks at 5 years, 62 weeks at 20 years.
Severance
Notice or indemnity in lieu (gross pay × notice weeks). No additional severance for ordinary dismissal, but 'manifestly unreasonable dismissal' under CCT 109 triggers 3–17 weeks' pay.

Reviewed 2026-06-22

Brazil
Probation
Up to 90 days (45+45) under CLT, must be in the contract from day 1.
Notice
30 days minimum (aviso prévio), extending 3 days per year of tenure, capped at 90 days. Notice can be worked or paid in lieu.
Severance
Without cause: 40% FGTS penalty (employer pays 40% of total FGTS balance to employee) + aviso prévio + proportional 13th + proportional vacation + 1/3 vacation bonus. Total termination cost commonly equals 1.5–2 months of pay even for short-tenured employees.

Reviewed 2026-06-22

Canada
Probation
3 months in most provinces; 6 months federally. During probation, termination without notice is allowed for cause.
Notice
Employment Standards Act minimums: 1 week after 3 months, scaling to 8 weeks after 8+ years. Common law notice (for non-union employees) is much higher: Bardal factors typically yield 1 month per year of service for executives.
Severance
Ontario: in addition to ESA notice, employers with $2.5M+ payroll owe 1 week per year of service (capped at 26 weeks) as severance pay under ESA s.64. Common-law claims by terminated executives often exceed ESA minimums substantially.

Reviewed 2026-06-22

Chile
Probation
Not formally regulated; typically structured as a 30-day initial period in the contract. Termination during probation still triggers Art. 161 indemnification rules.
Notice
30 days written notice OR pay-in-lieu under Art. 161 (necessidades de la empresa) for no-fault termination. Notice waived for cause (Art. 160).
Severance
On no-fault termination (necesidades de la empresa, Art. 161): 1 month's last salary per year of service or fraction >6 months, CAPPED at 11 months total and at UF 90 per month base. Plus 1 month pay-in-lieu of notice. So a 5-year hire on $4,000/month is owed ~$24,000 in severance + notice. Self-resignation: no severance owed. Mutual agreement (Art. 159(1)) requires notarised acuerdo de mutuo acuerdo, also no severance.

Reviewed 2026-06-22

Colombia
Probation
2 months for permanent contracts; 1/5 of contract length for fixed-term (max 2 months).
Notice
Indefinite-term contracts: 30 days for objective causes. Fixed-term: 30 days before expiry to avoid auto-renewal.
Severance
Without just cause: indemnización ranges from 20 to 45 days' salary per year of service, depending on salary tier and tenure. For employees earning <10 SMMLV with 1+ year tenure: 30 days first year + 20 days per additional year. Higher earners get 20 + 15.

Reviewed 2026-06-22

Czech Republic
Probation
Maximum 3 months for non-management, 6 months for managerial roles. Either party may terminate without reason during probation with no notice.
Notice
2 months minimum under Labour Code §51, starting the first day of the month following notice. Cannot be shortened by contract; can be extended.
Severance
Statutory severance applies only to terminations under §52(a)–(c): employer-initiated organizational change or health reasons: 1 month's average wage at <1 year; 2 months at 1–2 years; 3 months at 2+ years. Termination for misconduct (§55) or by employee resignation: no severance owed. Wrongful-dismissal claims through the regional court can add 3 months' wages.

Reviewed 2026-06-22

Denmark
Probation
Up to 3 months under standard Funktionær Act terms. During probation, 14 days notice from either party.
Notice
Funktionær Act §2: 1 month at <6 months tenure, 3 months at 6 months–3 years, 4 months at 3–6 years, 5 months at 6–9 years, 6 months at 9+ years. Employer notice always exceeds employee notice (1 month maximum from employee).
Severance
Funktionær Act §2a abolished tenure-based severance in 2015; only employees terminated at age 65+ with extreme long tenure may receive 1–3 months. In practice, no statutory severance for most exits. Overenskomst (collective bargaining) sectors may add fratrædelsesgodtgørelse. Wrongful-dismissal damages under §2b capped at 12 months for serious cases.

Reviewed 2026-06-22

Egypt
Probation
Maximum 3 months under Labour Law 12/2003 Art. 33. Either party may terminate without notice during probation; one probation per employee per employer.
Notice
2 months for tenure under 10 years; 3 months for 10+ years. Pay in lieu permitted. Must be in writing.
Severance
End-of-service gratuity: at least 2 months' salary per year of service if termination is by employer without just cause, or by mutual agreement. For fixed-term contracts terminated early, employer owes salary for the remainder of the term. Indefinite-contract dismissals require employer to prove just cause through the Tripartite Labour Committee or face 2-month-per-year compensation plus moral damages.

Reviewed 2026-06-22

France
Probation
2–4 months for CDI depending on role (employee, technician, executive); renewable once.
Notice
1–3 months depending on seniority and role; defined by collective agreement.
Severance
Statutory: 0.25 month/year for first 10 years, 0.33 month/year after. Collective agreements often more generous.

Reviewed 2026-06-22

Germany
Probation
Up to 6 months; during probation either party can terminate with 2 weeks' notice and no cause.
Notice
Statutory minimum: 4 weeks to the 15th or end of month. Extends with tenure: 1 month after 2 years, up to 7 months after 20 years.
Severance
No statutory severance under the Kündigungsschutzgesetz (Dismissal Protection Act), but in practice termination of long-tenured employees triggers a settlement of 0.5–1.0 months per year of service (Abfindung) to avoid wrongful-termination litigation in Arbeitsgericht.

Reviewed 2026-06-22

Hungary
Probation
Maximum 3 months (extendable to 6 months by collective bargaining agreement). Either party may terminate without reason during probation.
Notice
Minimum 30 days, extended by tenure under Labour Code §69: +5 days at 3 years, +15 at 5, +20 at 8, +25 at 10, +30 at 15, +40 at 18, +60 at 20 years. So a 20-year veteran requires 90 days' notice.
Severance
Statutory severance under §77 applies only to employer-initiated dismissal of indefinite contracts after 3+ years tenure: 1 month at 3 years, 2 at 5, 3 at 10, 4 at 15, 5 at 20, 6 at 25 years. Doubled if employee is within 5 years of retirement age. No severance for employee resignation or termination by mutual agreement.

Reviewed 2026-06-22

India
Probation
Customary 3–6 months; not statutorily defined but enforceable if in the contract.
Notice
30–90 days, set by the employment contract (most companies use 60 or 90 days). Industrial Disputes Act applies to 'workmen', 1 month notice + 15 days' salary per year of service for layoffs.
Severance
For non-workmen (managers, executives): contractual only, typically notice pay. For workmen with 1+ years: 15 days' average pay per completed year of service under the Industrial Disputes Act.

Reviewed 2026-06-22

Indonesia
Probation
Maximum 3 months. Can be ended without severance during probation with proper documentation.
Notice
14 days written notice from either party for indefinite-term contracts. Fixed-term (PKWT) contracts cannot be terminated early without paying the remainder.
Severance
Substantial under UU Cipta Kerja (Omnibus Law) 2020: uang pesangon (severance) + uang penghargaan masa kerja (long-service pay) + uang penggantian hak (rights compensation). At 8+ years tenure, a 'efficient business' termination can total ~9 months' salary. Multipliers vary by reason (0.5× for resignation with cause to 1.75× for retirement). Severance must be paid even if the employee resigns in many scenarios.

Reviewed 2026-06-22

Ireland
Probation
Maximum 6 months under the EU Transparent and Predictable Working Conditions Directive (2022). Older contracts may show 12 months but post-2022 hires are capped at 6.
Notice
Statutory minimum: 1 week (13 weeks–2 years), 2 weeks (2–5 yrs), 4 weeks (5–10), 6 weeks (10–15), 8 weeks (>15). Contracts often specify longer.
Severance
Statutory redundancy after 2 years: 2 weeks' pay per year of service + 1 bonus week, capped at €600/week. Unfair Dismissals Acts apply after 12 months, up to 2 years' pay if dismissal is found unfair.

Reviewed 2026-06-22

Italy
Probation
Set by CCNL, typically 3 months for impiegati, 6 months for quadri/dirigenti. Strictly enforced; cannot be extended unilaterally.
Notice
CCNL-dependent and tenure-stepped. Example (Commercio impiegati): 15–120 days based on level and years of service.
Severance
TFR (~7.4% of annual gross accrued each year) plus indemnity in lieu of notice if not worked. Unjustified dismissal in firms >15 employees can trigger reinstatement or 6–36 months' salary under Jobs Act tutele crescenti.

Reviewed 2026-06-22

Japan
Probation
Standard 3 months (shiyo kikan). Dismissal during probation still requires 'objectively reasonable grounds' under Labor Contract Act Art. 16.
Notice
30 days statutory under Labor Standards Act Art. 20, OR 30 days' pay in lieu. Combinations allowed (e.g. 15 days notice + 15 days pay).
Severance
No statutory severance. But unjust dismissal under LCA Art. 16 typically results in reinstatement + back pay (6–24 months) or a negotiated settlement of 6–24 months' salary. Mutual-agreement separations (taisyoku gankokyu) are the norm; expect to pay 3–12 months as 'settlement money' even for cause.

Reviewed 2026-06-22

Malaysia
Probation
Typically 3–6 months by contract. Can be extended once. Termination during probation requires notice per contract terms.
Notice
Employment Act minimum: 4 weeks (<2 yrs), 6 weeks (2–5 yrs), 8 weeks (>5 yrs). Higher contractual terms common at MNCs.
Severance
Statutory termination/lay-off benefits apply only to Employment Act-covered employees (earning ≤RM4,000/month or in manual labour, since 2022 reform): 10 days/year (<2 yrs), 15 days/year (2–5), 20 days/year (>5). Above RM4,000/month, severance is purely contractual. Industrial Court can award reinstatement + back pay for unjust dismissal; average award is 24 months' wages.

Reviewed 2026-06-22

Mexico
Probation
Probationary period limited to 30 days (180 for managers/specialists).
Notice
No statutory notice period, termination is immediate, but unjustified dismissal triggers severance.
Severance
Unjustified termination: 3 months' integrated salary + 20 days per year of service + 12 days per year seniority premium (capped at 2× minimum wage) + accrued benefits. This is among the most expensive severance regimes in Latin America.

Reviewed 2026-06-22

Netherlands
Probation
Maximum 1 month for contracts ≤2 years; 2 months for longer/permanent.
Notice
1–4 months depending on tenure (1 month per 5 years of service).
Severance
Transition payment: 1/3 month per year of service, no cap on years.

Reviewed 2026-06-22

Nigeria
Probation
3–6 months by contract; no statutory cap.
Notice
1 day (<3 months), 1 week (<2 years), 2 weeks (2–5 years), 1 month (>5 years).
Severance
Not statutory; payment in lieu of notice is the norm.

Reviewed 2026-06-22

Pakistan
Probation
3 months standard; up to 9 months for management.
Notice
30 days notice or 30 days' wages in lieu.
Severance
Retrenchment compensation: 30 days' wages per year of service.

Reviewed 2026-06-22

Philippines
Probation
Maximum 6 months; after that the employee is 'regularized' and gains tenure protection.
Notice
30 days minimum written notice for authorized causes (redundancy, retrenchment, closure). For just causes (misconduct), two-notice rule, notice to explain + notice of decision.
Severance
Authorized cause termination: 1 month or 0.5 month per year of service (whichever higher) for redundancy/retrenchment; 1 month or 1 month per year for closure. Just cause: no separation pay unless company policy provides it.

Reviewed 2026-06-22

Poland
Probation
Up to 3 months, defined in writing.
Notice
2 weeks (<6 months), 1 month (<3 years), 3 months (3+ years).
Severance
Only for collective redundancies (20+ employers): 1–3 months depending on tenure.

Reviewed 2026-06-22

Portugal
Probation
90 days standard; 180 days for complex/technical roles; 240 days for executives.
Notice
15–75 days depending on tenure; longer for executives.
Severance
12 days per year of service for post-2013 contracts; older contracts have legacy formulas.

Reviewed 2026-06-22

Romania
Probation
30 days (workers) to 90 days (managers/specialists); 120 days for management.
Notice
20 working days minimum, regardless of tenure.
Severance
Not statutory; defined by collective agreement or contract.

Reviewed 2026-06-22

Singapore
Probation
Typically 3–6 months by contract; no statutory cap.
Notice
1 day (<26 weeks), 1 week (<2 years), 2 weeks (<5 years), 4 weeks (>5 years).
Severance
Not statutory; retrenchment benefit at MoM guidelines: 2 weeks–1 month per year of service.

Reviewed 2026-06-22

South Africa
Probation
Reasonable period (typically 3 months); termination still requires fair process.
Notice
1 week (<6 months), 2 weeks (6 months–1 year), 4 weeks (>1 year).
Severance
Statutory for retrenchment only: 1 week per year of service.

Reviewed 2026-06-22

Spain
Probation
Permanent contracts: 6 months for qualified technicians, 2 months for other workers. Can't be longer than what the applicable convenio colectivo allows.
Notice
Objective dismissal (redundancy): 15 days' written notice. Disciplinary dismissal: immediate.
Severance
Fair objective dismissal (redundancy): 20 days' salary per year of service, capped at 12 months. Unfair dismissal (despido improcedente): 33 days' salary per year for post-2012 contracts, capped at 24 months. Spanish labor courts side with employees ~75% of the time when challenged.

Reviewed 2026-06-22

Sweden
Probation
Maximum 6 months (provanställning). Either party can end without cause until the period expires.
Notice
LAS-based, tenure-stepped: 1 month (<2 years), 2 months (2–4), 3 months (4–6), 4 months (6–8), 5 months (8–10), 6 months (>10 years).
Severance
No statutory severance, but dismissal requires saklig grund (just cause), either personal (misconduct) or workforce reduction (arbetsbrist). LIFO (last-in-first-out) applies to redundancies. Wrongful-dismissal damages: 6–32 months' salary plus reinstatement risk.

Reviewed 2026-06-22

Switzerland
Probation
Maximum 3 months under Code of Obligations Art. 335b. Notice during probation: 7 days unless contract specifies otherwise.
Notice
Tenure-stepped under Art. 335c: 1 month during year 1, 2 months years 2–9, 3 months from year 10. Always ending on the last day of a calendar month. Contracts may extend but not shorten.
Severance
No statutory severance under Code of Obligations except for employees 50+ with 20+ years of service (Art. 339b), between 2 and 8 months' salary. Abusive dismissal (Art. 336) caps damages at 6 months' salary. Most exits negotiate a 'plan social' or settlement, especially in regulated sectors.

Reviewed 2026-06-22

Thailand
Probation
Maximum 119 days (under the 120-day severance trigger). Termination during probation requires neither notice nor severance if properly documented.
Notice
One full pay period (typically 30 days) from either party, OR pay in lieu equal to wages for the notice period.
Severance
Statutory severance under LPA §118 scales with tenure: 30 days at 120 days–1 year; 90 days at 1–3 years; 180 days at 3–6 years; 240 days at 6–10 years; 300 days at 10–20 years; 400 days at 20+ years. Additional 'special severance' under §121 applies for technology-driven termination (no fewer than 30 days, capped at 400). Wrongful dismissal under §49 can add unfair dismissal damages.

Reviewed 2026-06-22

Turkey
Probation
Maximum 2 months under İş Kanunu Art. 15, extendable to 4 months by collective bargaining. Termination during probation requires no notice or severance.
Notice
Tenure-stepped under Art. 17: 2 weeks (<6 months), 4 weeks (6 months–1.5 yrs), 6 weeks (1.5–3 yrs), 8 weeks (>3 yrs). Pay in lieu permitted (ihbar tazminatı).
Severance
Kıdem tazminatı under Art. 14 of the prior Labour Code (still in force): 1 month of gross salary per completed year of service on employer-initiated termination, employee resignation due to specific causes (military service, marriage for women within 1 year, retirement), or termination for non-misconduct reasons. NO tenure cap. Per-month amount capped at the severance ceiling (TRY 47,304/month in early 2025, indexed each January). Inflation-adjusted, a 10-year hire's exit cost is meaningful.

Reviewed 2026-06-22

Ukraine
Probation
Up to 3 months (1 month for workers).
Notice
2 months for redundancy; 2 weeks for employee resignation.
Severance
1 month average salary for redundancy; up to 3 months in specific cases.

Reviewed 2026-06-22

United Arab Emirates
Probation
Maximum 6 months under Federal Decree-Law 33 of 2021. Termination during probation requires 14 days notice from employer.
Notice
30 days minimum for indefinite contracts, or as specified in the contract (up to 3 months max). Pay in lieu permitted.
Severance
End of Service Gratuity is the primary statutory exit payment: 21 days of basic salary per year for first 5 years + 30 days/year thereafter, capped at 2 years' total basic pay. Reduced if employee resigns before 5 years (typically by 1/3 to 2/3). The 2021 reform abolished the historic limited/unlimited contract distinction. Arbitrary dismissal can add 3 months' wages compensation.

Reviewed 2026-06-22

United Kingdom
Probation
Typically 3–6 months by contract; no statutory probation period, but unfair dismissal protection only kicks in at 2 years' service (April 2026 reform may reduce to day-one).
Notice
Statutory minimum: 1 week after 1 month, then 1 week per year of service up to 12 weeks. Contracts often specify longer.
Severance
Statutory redundancy pay (after 2 years' service): 0.5/1/1.5 weeks' pay per year of service (under 22 / 22–40 / 41+), capped at £700/week and 20 years. Often supplemented with enhanced redundancy.

Reviewed 2026-06-22

United States
Probation
No statutory probation, at-will employment is the default in 49 states.
Notice
No federal notice requirement; WARN Act requires 60 days for mass layoffs (100+ employees).
Severance
Not statutory; offered in exchange for a release of claims. 1–2 weeks per year of service is typical.

Reviewed 2026-06-22

Vietnam
Probation
Up to 60 days (skilled), 30 days (other), 6 days (unskilled).
Notice
30 days (definite-term), 45 days (indefinite-term).
Severance
Half month per year of service for pre-2009 service; unemployment insurance covers post-2009.

Reviewed 2026-06-22

How to use this

  • • Treat notice as cost, not calendar. You pay salary, employer taxes and the provider fee for every month of notice you serve.
  • • Add severance to the first year budget in high accrual markets, where an exit after twelve months can cost more than a quarter of annual salary.
  • • Confirm who funds the payment. Some providers require severance to be prepaid before they issue notice.
  • • Country rules change. Every row carries the date we last reviewed it, and each country guide lists the sources behind it.

This is general information, not legal advice. Confirm current requirements with your provider or local counsel before acting.

Related

FAQ

You do. The Employer of Record is the legal employer and makes the payment, but it invoices the cost back to you, usually alongside the final payroll. Some providers also require the severance amount to be funded in advance before they will issue a termination notice, so ask how your provider handles it before you need to.

Civil law jurisdictions in Latin America and continental Europe tend to be the costliest, because statutory severance accrues with tenure and unjustified dismissal adds penalties on top. Common law markets and at-will regimes are cheaper to leave but can still carry notice pay, accrued leave and contractual obligations.

Rarely without any notice at all. Most countries shorten notice during probation rather than remove it, and several require written grounds even in the probation window. Check the country row above, then read the full guide for the statutory basis.

Yes in practice. You keep paying the provider fee and full employment cost through the notice period, so a three month notice requirement adds three months of total cost to any exit plan. Build that into the break-even maths before you commit to a country.