When employing staff across Europe, understanding how notice periods and severance pay work is essential for ensuring compliance and managing employee exits smoothly. These two pillars of employment law play a vital role in protecting both organizations and their people. While specific rules vary from one country to another, they are typically shaped by national legislation and collective agreements.
In this blog, we provide a snapshot of how notice periods and severance pay are structured in a selection of EU countries as of 2025. While the list is not exhaustive, it highlights important trends and requirements international employers should be aware of. At EuroDev, we support businesses in navigating employment law across virtually every European country—ensuring local compliance while enabling global growth.
What Are Notice Periods and Severance Pay?
A notice period is the amount of time either an employee or employer must give before ending the employment relationship. The length of the notice period typically depends on factors such as the duration of employment, the terms of the contract, and local labor regulations. The table below shows sample notice period structure in 2025.
Notice Periods in 2025: Country-by-Country Overview
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Country
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Notice Period (2025)
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Germany
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4 weeks to several months depending on tenure. Employers must now provide detailed severance guidance.
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France
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Set by the applicable collective bargaining agreement and the Labor Code. Generally lasts between 1 to 3 months, depending on seniority and contract terms. Longer periods for executives.
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Spain
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15 days to 1 month. Can be extended by collective agreements.
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Italy
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15 days to 6 months based on professional category and tenure.
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Netherlands
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1-month notice for employees. Employers: 1 to 4 months based on length of service, or period agreed beforehand.
If the employee's notice period is more than 1 month, the employer's notice period must be at least twice as long.
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Sweden
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1 to 6 months. Influenced by collective labor agreements and total length of service
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Poland
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2 weeks, 1 month, or 3 months depending on service time.
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Severance pay is a financial compensation offered to employees when their employment ends due to reasons like redundancy, restructuring, or mutual agreement. While some countries have statutory severance entitlements, others may leave it to collective agreements or company policies. Here are some examples of severance pay structures.
Severance Pay: Country-by-Country Overview
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Country
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Severance Pay (2025)
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Germany
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0.5 month’s salary per year of service for operational dismissals. Capped based on age and tenure.
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France
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Applies after 8 months of service. 1/4 month’s salary per year for first 10 years, then 1/3 month thereafter.
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Spain
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20 days’ salary per year of service. Capped at 12 months.
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Italy
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Based on average salary and years of service, under the Trattamento di Fine Rapporto (TFR) system.
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Netherlands
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1/3 month’s salary per year of service. Capped at approx. €98,000 in 2025.
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Sweden
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No statutory requirement. Severance may apply under collective agreements.
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Poland
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1 to 3 months’ salary for employees in companies with over 20 workers. Based on tenure.
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Why Do These Regulations Matter?
For employees, clear notice periods and severance entitlements provide financial security and predictability during periods of job transition. These protections help ensure that employees are treated fairly and are able to prepare for life after employment.
For employers, understanding and complying with these requirements is crucial for managing risk and maintaining a strong employer brand. Inconsistent or non-compliant offboarding can lead to legal disputes, financial penalties, and reputational harm, especially in countries where labor protections are tightly enforced.
Key Considerations for Employers
Successfully navigating notice periods and severance pay in Europe requires a detailed understanding of local labor laws and the nuances of each market. Businesses should:
- Plan ahead and factor severance obligations into payroll budgets.
- Align internal HR policies with country-specific labor regulations.
- Monitor changes in national legislation and collective agreements.
- Consider the role of local norms and expectations when developing offboarding strategies.
Need Expert Guidance? EuroDev Can Help
Navigating employment obligations across Europe can be complex, especially when dealing with notice periods, severance requirements, and collective agreements. At EuroDev, we specialize in helping international companies expand and operate seamlessly across the European market.
Whether you're hiring your first employee in a new country or scaling a team across multiple jurisdictions, our HR Outsourcing experts are here to ensure that you stay compliant while building a strong foundation for your European workforce.
Contact EuroDev today to learn how our HR and legal experts can support your business across Europe, or explore our full range of HR Outsourcing services.
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