Severance Allowance Entitlement

When a payee's contract is terminated prematurely for a nondisciplinary or economic reason (that is, the payee is laid off), the payee is entitled to a severance allowance as defined by the collective agreement. The allowance is paid in one sum and depends on various conditions, such as term of service and the reason for the layoff. The allowance amount depends on the salary base, years of service, and the payee's category.

Payees dismissed for disciplinary reasons, including those sentenced in court, receive the statutory allowance defined by the government because this is more favorable than the allowance defined by the collective agreement.

The severance allowance for a nondisciplinary or economic reasons is calculated by the earning IND LIC AFB.