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Odstupné

Severance pay (compensation upon dismissal)

What does “Odstupné” mean in Slovakia?

Odstupné (severance pay) is financial aid that an employer must pay to an employee when they are dismissed for reasons on the employer's side: downsizing, company liquidation, business relocation, or loss of work capacity due to health reasons.

The amount of severance pay is usually a multiple of the average monthly earnings and depends on how many years you have worked for this employer — the longer your service, the larger the sum.

When the right arises

the employer gives you a notice (výpoveď) for organizational reasons;
or you sign a termination agreement (dohoda) for the same reasons;
employment relations end due to health status based on a medical opinion.

The money is usually paid during the final settlement, separately from unpaid salary and compensation for unused vacation. The exact formula is determined by law, and the amount may differ depending on whether you work through the notice period or leave immediately. If you resign of your own free will or due to violations on your part, the right to severance pay generally does not arise.

Important. Severance pay and notice period (výpovedná doba) are different things: under certain conditions, you can get both. Read the reason for dismissal in the document carefully – the amount depends on it.

Examples of use

You are entitled to severance pay equal to two salaries.

You have the right to severance pay of two salaries.

Your employer is canceling your job position, you will receive severance pay.

The employer is eliminating the position, you will receive severance pay.

We will pay your severance pay in your last month's salary.

We will pay the severance pay with the salary for the last month.

Frequently asked questions

Will I get severance pay if I resign myself?

As a rule, no. Severance pay is paid mainly when the initiative for dismissal comes from the employer for organizational reasons or due to health.

What does the size depend on?

First, based on your work history with this employer and your average earnings. The longer you worked, the higher the amount usually will be.

What to do if the severance pay was not paid?

First, contact your employer in writing. If this does not help, contact the Labor Inspectorate (Inšpektorát práce) or a court; you can often get advice for free.