Legal Knowledge

Employee Rights Upon Termination

16 Aug 2026 3

A brief guide to severance pay, employee benefits, and the key steps employees should know when their employment is terminated.


Employee Rights Upon Termination

Termination of employment can have a significant impact on an employee’s income and benefits. Employees should therefore understand their legal rights and check whether the employer has properly followed the applicable labor laws and fulfilled its payment obligations.

1. Outstanding Salary and Other Payments

Upon termination, an employer should settle salary and other amounts that the employee is legally or contractually entitled to receive, such as unpaid wages, overtime pay, or other amounts that have become due.

Employees should carefully review payment records and calculations before signing documents relating to the termination.

2. Severance Pay

Where an employee is terminated and the statutory requirements are met, the employee may be entitled to statutory severance pay based on length of service.

The amount may depend on the employee’s period of employment and the circumstances surrounding the termination. Certain types of termination may fall within statutory exceptions where severance is not required. Each case should therefore be assessed based on its specific facts.

3. Payment in Lieu of Advance Notice

If an employer terminates employment without providing the notice required by law, the employee may be entitled to payment in lieu of notice.

The applicable requirements may depend on the type of employment agreement and the circumstances of the termination.

4. Outstanding Leave and Other Benefits

Employees should also review any outstanding employment benefits arising before the employment ends, including payments relating to statutory leave, contractual benefits, and other rights provided under the employer’s work rules.

5. Unfair Termination

If an employee believes that the termination was unjustified or unfair, the employee may have legal options to seek appropriate remedies.

Whether a termination is considered unfair depends on the circumstances, including the reason for termination, relevant documents, the employer’s conduct and the employee’s circumstances.

6. Documents Employees Should Keep

Employees should retain documents relating to their employment and termination, including:

  • Employment contract
  • Termination letter
  • Payslips
  • Salary payment records
  • Termination notices or communications
  • Company work rules
  • Severance and benefit documents
  • Records of communications or negotiations with the employer

These documents can be important when assessing legal rights or pursuing a claim.

7. What Should an Employee Do If Their Rights Are Not Paid?

If an employee does not receive severance pay, salary, or other amounts to which they may be entitled, they should promptly review their legal rights and the circumstances of the termination.

Depending on the circumstances, the employee may consider negotiating with the employer or pursuing the appropriate legal process to protect and enforce their rights.

Conclusion

Employee rights upon termination may include more than statutory severance pay. Depending on the circumstances, an employee may also have rights relating to payment in lieu of notice, unpaid wages and other employment benefits, as well as potential remedies for unfair termination.

Because employment rights depend on the specific facts and circumstances of each case, employees should obtain appropriate legal advice before signing settlement or termination documents.

Related Articles

Company Registration Process
Company Registration Process

Steps, Required Documents, and Key Requirements for Company Registration

How Long Do You Have to Sue a Debtor for Non-Payment?
How Long Do You Have to Sue a Debtor for Non-Payment?

Understand the Limitation Period for Legal Claims and What You Should Know Before Taking Legal Action

Web hosting by Somee.com