endofservice

End of service refers to the point at which an individual's service with an employer ends. It can result from contract expiry, resignation, retirement, layoff, dismissal, or termination for cause.

In many jurisdictions, the term also refers to a set of payments and obligations owed by the employer to the employee upon termination, commonly called end-of-service benefits, severance, or gratuity. Eligibility and amount are determined by law, contract, or company policy.

Components often include: final wages and accrued compensation, payment for unused annual leave, prorated or discretionary bonuses, and severance or gratuity payments based on years of service and salary. The calculation rules vary widely and may depend on length of service, position, reason for termination, and whether the termination is voluntary or involuntary. Some jurisdictions or contracts require a notice period or impose conditions to qualify for benefits.

Employers must typically provide a final settlement within a prescribed period and may issue a final payslip or settlement statement. In some places, end-of-service payments are subject to tax or social security contributions, while in others they are tax-exempt or taxed differently.

For employees, understanding entitlement requires reviewing the applicable labor law, contract, and any collective bargaining agreement. For employers, accurate calculation and timely payment help ensure compliance and reduce disputes.