Document text
Severance pay calculation and final settlement
Labour Proclamation No. 1156/2019 — severance, additional payments, notice and annual leave
Worker: [WORKER NAME]
Employer: [EMPLOYER NAME AND ADDRESS]
Service: [START DATE] – [LAST DAY OF WORK]
Why the job ended: [REASON]
Calculation
Item Rule Amount
Monthly wage Br [AMOUNT]
Daily wage monthly wage ÷ 30 Br [AMOUNT]
Severance — first year art. 40(1): 30 × daily wage Br [AMOUNT]
Severance — [N] additional years art. 40(2): 10 × daily wage a year Br [AMOUNT]
Additional payment for the reason art. 40(3), 41 or 43(4): [DAYS] × daily wage Br [AMOUNT]
Wages in lieu of notice art. 35, 43(4)(a), 44: [MONTHS] months Br [AMOUNT]
Unused annual leave art. 77(5): [DAYS] days × daily wage Br [AMOUNT]
Total due before any tax Br [AMOUNT]
Severance is capped at twelve months' wage (art. 40(2)). Add wages for the days worked in the last month and anything else your contract or collective agreement gives. Payment is due within seven working days of termination (art. 36).
Who is entitled to severance (art. 39)
A worker who has completed probation and is not eligible for pension, when:
the undertaking closes permanently, or the worker is reduced (reduction of workforce);
the employer terminates the contract in violation of the law;
the worker leaves because of sexual harassment or violence, maltreatment, or a threat to safety the employer did not act on;
a medical board certifies partial or total disability;
after at least five years of service the contract ends by sickness, death or the worker's own resignation (with no training bond).
Letter requesting the final settlement
[PLACE], [DATE]
To: [EMPLOYER NAME], Human Resources
Subject: Payment of severance pay and final settlement
Dear Sir or Madam,
I worked for your company as [JOB TITLE] from [START DATE] until [LAST DAY OF WORK]. My employment ended because of [REASON]. Under Articles 39 and 40 of the Labour Proclamation No. 1156/2019 I am entitled to severance pay, and to the other payments listed below.
According to my calculation, attached, the total due is Br [TOTAL]: severance pay Br [AMOUNT], additional payment Br [AMOUNT], wages in lieu of notice Br [AMOUNT] and unused annual leave Br [AMOUNT].
I kindly ask you to pay this amount within seven working days, as Article 36 of the Proclamation requires, to my bank account [BANK AND ACCOUNT NUMBER], and to give me a certificate of employment (work experience letter). If you disagree with any amount, please pay the amount you accept within the same time (Article 37) and tell me in writing which item you dispute.
Yours faithfully,
[WORKER NAME]
Phone: [PHONE NUMBER]
Signature: ________________________________ Date: ____/____/________
Received by (employer): ________________________________ Date: ____/____/________
Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019: art. 31, 32, 35–41, 43, 44, 53, 77. Daily wage taken as monthly wage ÷ 30. Tax on these payments is not calculated. A calculation and a letter template, not legal advice.