Severance pay, otherwise called end pay or overt repetitiveness pay, is an instalment made to employees who are laid off or fired from their business. This instalment is typically made to help the employees monetarily while they look for new business. The amount of an employee's severance pay varies by country, company policy, and length of service.
The laws governing severance pay vary from country to country in the UAE and GCC. Employees with at least one year of continuous service in the UAE are entitled to 21 days' worth of severance pay for each year of service. Severance pay in Saudi Arabia is 15 days' pay for every year of continuous service for employees with at least two years of service. In Kuwait, employees who have finished something like three years of ceaseless help are qualified for severance pay of 15 days' compensation for every time of administration.
Severance pay is an important part of HR management because it helps make sure that employees are treated fairly and have money to help them through unemployment.