Legal Q&A · Employment Law & HR

When am I entitled to severance pay, and how much?

Law as at 21 July 2026

Answered by , Czech and Slovak attorney, admitted to the Slovak and Czech Bars (SAK 300422 · ČAK 19654).

Short answer

Statutory severance pay mainly applies when the employer terminates employment on organisational grounds (closure, relocation or redundancy) or health grounds. The amount increases with years of service, from one to four times average monthly earnings for termination by notice, or up to five times for termination by agreement. There is no statutory severance entitlement for dismissal for misconduct.

When is severance pay due?

Under Section 76 of the Labour Code, severance entitlement arises mainly when employment ends on organisational grounds (closure or relocation of the employer, redundancy under Section 63(1)(a), (b) or (f)) or health grounds (long-term loss of fitness to perform the existing work). By contrast, there is no statutory severance entitlement for dismissal for breach of work discipline or termination during probation.

How much severance pay is due?

For termination by notice (Section 76(1)), the amount depends on length of employment:

  • at least 1× average monthly earnings: at least 2 but less than 5 years;
  • 2×: at least 5 but less than 10 years;
  • 3×: at least 10 but less than 20 years;
  • 4×: at least 20 years.

Employment lasting less than two years therefore gives no statutory severance entitlement on notice; you receive “only” the notice period.

For termination by agreement on the same grounds (Section 76(2)), severance is one level higher and applies from the outset: 1× for under 2 years, 2× for under 5, 3× for under 10, 4× for under 20 and 5× from 20 years. Termination because of an occupational accident or occupational disease entitles the employee to at least ten times average monthly earnings (Section 76(3)).

What to watch for

These are statutory minimums: the employer may provide more (Section 76(7)), and collective agreements often set higher severance. If you return to the same employer before the period “covered” by severance expires, you repay a proportionate amount (Section 76(4)). Whether the true reason for termination was organisational or health-related, and therefore whether severance is due, often lies at the centre of a dispute. We assess this and pursue the claim through termination of employment, represent you in employee disputes and, for invalid termination, also pursue claims arising from invalidity.

This answer provides general information on the law as at 21 July 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.

More legal questions

All questions and answers
  1. Are we liable if our supplier employs people illegally? You may be, in two ways. The law prohibits accepting work or services supplied through illegally employed people, for all supplies of labour and longer cross-border service provision; the customer faces a fine of up to EUR 200,000. If a statutory representative or managerial employee is proved to have known of the supplier's practices, a fine that could not be recovered from the supplier may also pass to the company. Protection comes from documents the supplier must provide by law and a properly drafted contract.
  2. We hired a third-country national. What must we report to the labour office, and when? Notify the labour office for the place of work in writing when employment starts and ends, each within seven working days; attach a copy of the employment contract when reporting the start. You must also report that the foreign national did not start on the agreed date, which companies most often forget. Breach of reporting duties may attract a fine of up to EUR 100,000.
  3. We employ an EU citizen. Do we have any obligations towards the labour office? Yes, although an EU citizen needs no work permit. You must notify the labour office for the place of work when employment starts and ends, using an electronic information card with a qualified electronic signature, each time within seven working days. The same duty applies to family members. Failure to file the card may attract a fine of up to EUR 100,000.
  4. An employee has challenged dismissal in court. What deadlines apply and what should we prepare? The invalidity of termination must generally be claimed in court within two months of the date employment was due to end. If employment is extended under Section 64(2) because of a protected period under Section 64(1)(a), a special deadline applies: two months after the final day of that protection, but no later than six months after the original termination date. The court examines both the grounds and the statutory dismissal procedure. If the employee insists on continued employment, wage compensation is at risk; the option to reduce compensation beyond 12 months and the 36-month cap do not apply to termination during whistleblower protection under Section 79(3).

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Mgr. Patrik Tulinský, LL.M. Czech and Slovak attorney · SAK 300422 · ČAK 19654

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