Termination, Layoffs, and Severance Pay

Handle terminations, layoffs, and severance pay in compliance with international regulations, ensuring smooth transitions and legal protection with expert guidance.

Challenges Faced by SMEs in Termination, Layoffs, and Severance Pay

  • Understanding varying notice period requirements and severance calculations.
  • Ensuring compliance with local labor laws to avoid wrongful termination claims.
  • Managing the financial and operational impacts of layoffs

What Should an SME Do Facing This Issue in a Foreign Country?

  • Conduct Thorough Research: Understand local labor laws regarding terminations and severance.
  • Seek Expert Legal Advice: Consult with local legal experts to navigate termination and severance processes.
  • Implement Clear Policies: Develop and communicate clear policies on terminations, layoffs, and severance pay.

Common Scenarios

Employment and Workforce Management

Recruitment, management, and termination of employees and contractors in foreign markets, including remote/virtual workers.

Foreign Direct Investment

Investment in, setting up, managing, and closing business entities in foreign markets, including subsidiaries, partnerships, or joint ventures.

Outsourcing and Manufacturing

Outsourcing the manufacturing of products to a foreign company based on your own design and IP.

Cross-border Services

Provision of professional or business services to foreign clients without establishing a physical presence.

Explore Legal Solutions by Country

Philippines Image

Philippines

Canada Image

Canada

  • Termination Requirements: Employers must provide a valid reason for termination and adhere to the notice period specified by provincial laws.
  • Severance Pay: Severance is based on years of service, typically one week’s pay for each year worked, subject to provincial regulations.
  • Approval and Documentation: Proper documentation and adherence to provincial guidelines on notice periods and severance are required
Hong Kong Image

Hong Kong

India Image

India

  • Termination Requirements: Notice period and reasons must comply with the Industrial Disputes Act.
  • Severance Pay: 15 days’ wages for each completed year of service.
  • Approval and Documentation: Proper notice and government approval may be required for large layoffs.
Vietnam Image

Vietnam

  • Termination Requirements: Specific grounds required; improper termination can lead to reinstatement orders.
  • Severance Pay: One month’s salary for each year of service if employed for more than one year.
  • Approval and Documentation: Written notice and proper documentation needed.
China Image

China

  • Termination Requirements: Requires a valid reason and may need consultation with labor unions.
  • Severance Pay: Calculated based on years of service, typically one month’s salary for each year worked.
  • Approval and Documentation: Documentation and proper notice periods required
Indonesia Image

Indonesia

  • Termination Requirements: Must follow specific procedures; illegal terminations can result in reinstatement orders.
  • Severance Pay: Varies by type of termination; typically one month’s salary for each year worked.
  • Approval and Documentation: Documentation and approval from the Ministry of Manpower may be required.
Malaysia Image

Malaysia

Thailand Image

Thailand

  • Termination Requirements: Must provide valid reasons and proper notice.
  • Severance Pay: Based on length of service; ranges from 30 days to 300 days of wages.
  • Approval and Documentation: Proper notice and documentation required.

Manage Terminations and Layoffs with Legal Compliance

Facing challenges with terminations or layoffs? Access vetted, experienced lawyers instantly and solve your legal problems in 4 steps. Get legal support from anywhere in the world.

Find Your Own Lawyer
and Get a Free Quote

Search, Connect, and Get a Free Quote from Our Experts

China

Haiping Deng

Haiping Deng
Subject Expertise
Corporate
,
Commercial Contracts
,
Foreign Direct Investment
,
Mergers and Acquisitions
,
Private Equity / Venture Capital (PE/VC)
,
China

Sylvia Zhang

Sylvia Zhang
Subject Expertise
Corporate
,
Commercial Contracts
,
Dispute Resolution
,
Employment
,
Foreign Direct Investment
,
China

Wendy Zheng

Wendy Zheng
Subject Expertise
Corporate
,
Employment
,
Foreign Direct Investment
,
Mergers and Acquisitions
,
Banking
,
China

Emilia Shi

Emilia Shi
Subject Expertise
Capital Markets & Securities
,
Commercial Contracts
,
Corporate
,
Dispute Resolution
,
Employment
,
China

Maarten Roos

Maarten Roos
Subject Expertise
Corporate
,
Commercial Contracts
,
Dispute Resolution
,
Employment
,
Foreign Direct Investment
,
Canada

Dean Davison

Dean Davison
Subject Expertise
Commercial Contracts
,
Corporate
,
Dispute Resolution
,
Employment
,
China

Susan Wang

Susan Wang
Subject Expertise
Corporate
,
Foreign Direct Investment
,
Mergers and Acquisitions
,
Other
,
Commercial Contracts
,
China

Guanglei Zhang

Guanglei Zhang
Subject Expertise
Dispute Resolution
,
Employment
,
Other
,
China

Phil Wang

Phil Wang
Subject Expertise
Corporate
,
Commercial Contracts
,
Capital Markets & Securities
,
Foreign Direct Investment
,
Mergers and Acquisitions
,
China

Jay Chen

Jay Chen
Subject Expertise
Commercial Contracts
,
Corporate
,
Dispute Resolution
,
Employment
,
Foreign Direct Investment
,
China

Mary Mao

Mary Mao
Subject Expertise
Corporate
,
Commercial Contracts
,
Mergers and Acquisitions
,
Bankruptcy & Insolvency
,
Foreign Direct Investment
,
India

Abhishek Majumdar

Abhishek Majumdar
Subject Expertise
Dispute Resolution
,
Bankruptcy & Insolvency
,
Capital Markets & Securities
,
Commercial Contracts
,
Corporate
,
India

Abhishek Esq.

Abhishek Esq.
Subject Expertise
Dispute Resolution
,
Commercial Contracts
,
Corporate
,
Criminal Defense
,
Employment
,
Canada

Christopher Achkar

Christopher Achkar
Subject Expertise
Employment
,
Executive Compensation
,
Dispute Resolution
,
Commercial Contracts
,
Regulatory Compliance
,
U.S.

Connie Dai

Connie Dai
Subject Expertise
Commercial Contracts
,
Corporate
,
Employment
,
Foreign Direct Investment
,
Other
,
Canada

Joy Wei

Joy Wei
Subject Expertise
Corporate
,
Commercial Contracts
,
Immigration
,
Will & Estate (and Trust)
,
Brazil

Milena Oliveira

Milena Oliveira
Subject Expertise
Tax
,
Mergers and Acquisitions
,
Employment
,
Regulatory Compliance
,
Administrative
,
China

Nancy Chen

Nancy Chen
Subject Expertise
Tax
,
Foreign Direct Investment
,
Accounting
,
Corporate
,
International Trade
,
China

Pierre Wong

Pierre Wong
Subject Expertise
Tax
,
Accounting
,
Agency
,
Regulatory Compliance
,
Corporate
,
Indonesia

oswald soaloan

oswald soaloan
Subject Expertise
Bankruptcy & Insolvency
,
Dispute Resolution
,
Commercial Contracts
,
Foreign Direct Investment
,
Landlord and Tenant matters
,

The Most Overlooked Risks When Exporting to China (2024 Update)

Exporting to China offers immense opportunities but comes with unique risks, especially for SMEs. This guide outlines 8 common risks, including issues with contracts, trademarks, financial stability, and regulatory compliance, and offers actionable strategies to mitigate them.
Written on:
November 28, 2024
Introduction to Lao’s Intellectual Property Law: Key Updates for Foreign SMEs

Introduction to Lao’s Intellectual Property Law: Key Updates for Foreign SMEs

Written on:
November 7, 2024

Navigating Indonesia’s New E-Commerce Regulations

Indonesia’s Ministry of Trade has recently introduced new e-commerce regulations under MoT Regulation No. 31/2023 (“MOTR 31/2023”). This was meant to replace MOT Regulation No. 50/2020 (“MOTR 50/2020”). The spirit of these new rules is to protect local small and medium-sized enterprises in Indonesia, as the government views that foreign e-commerce merchants will adversely impact...
Written on:
October 10, 2024