Faroe Islands Employment Notice & Severance Calculator
Calculate statutory termination notice periods (uppsagnartíð: 1 to 6 months), mandatory salary continuance, and seniority severance compensation under the Faroese Salaried Employees Act (Starvsmannalogin).
Contract & Seniority Parameters
Base monthly salary plus fixed contractual allowances.
Combined statutory notice pay remuneration and length-of-service severance compensation.
Statutory Entitlement Schedule All amounts in DKK
| Entitlement Item | Statutory Basis (Starvsmannalogin) | Duration | Settlement Value |
|---|---|---|---|
| Notice Period Pay | Based on years of service | 5 mo. | 210,000 kr. |
| Severance (Fratraeðingargoðtgjorld) | § 2a (12 / 15 / 18 yrs) | 0 mo. | 0 kr. |
| Holiday Pay Accrual (12%) | Frítíðarlogin on notice earnings | 12.0% | 25,200 kr. |
| Total Compensation Obligation | Notice Pay + Severance | 5 mo. | 210,000 kr. |
Faroe Islands Salaried Employees Act (Starvsmannalogin) Guide
Employer Notice Tiers
Under Starvsmannalogin, employer notice periods scale progressively with uninterrupted employment:
- Up to 5 months service: 1 month notice
- Up to 2 years 9 months: 3 months notice
- Up to 5 years 8 months: 4 months notice
- Up to 8 years 7 months: 5 months notice
- Over 8 years 7 months: 6 months maximum statutory notice
All employer notices must be issued in writing prior to the first day of the calendar month in which the notice period begins.
Severance Compensation (§ 2a)
When an employer dismisses an employee who has completed prolonged uninterrupted service at the same company, the employee is entitled to statutory severance pay (fratraeðingargoðtgjorld):
- 12 continuous years: 1 month's salary
- 15 continuous years: 2 months' salary
- 18 continuous years: 3 months' salary
This payment is paid lump-sum severance at departure, independent of whether the employee secures new employment immediately.
Probationary Period (Royndartíð)
A probationary clause must be agreed upon in the written contract of employment and cannot exceed 3 months. During this window, either party may terminate the employment with a 14-day notice period without having to wait for a calendar month-end.
Employee Resignation Rules
If the employee resigns voluntarily, the standard statutory notice period is 1 month, expiring at the end of a calendar month, regardless of their length of tenure, unless a longer mutual notice was explicitly stipulated in the employment contract.
Frequently Asked Questions (FAQ)
What is the statutory notice period for dismissal in the Faroe Islands? ↓
Under Starvsmannalogin (the Faroese Salaried Employees Act), the employer's notice period ranges from 1 month (first 6 months of employment) up to 6 months (after 9 years of service), always expiring at the end of a calendar month.
What notice must an employee provide when resigning? ↓
An employee who resigns is generally required to provide 1 month's notice expiring at the end of a calendar month, unless a longer reciprocal period is stipulated in their employment contract.
Who is eligible for statutory severance pay (fratraeðingargoðtgjorld)? ↓
Salaried employees dismissed after long continuous tenure are entitled to severance compensation: 1 month of salary after 12 years, 2 months after 15 years, and 3 months after 18 years of uninterrupted service.
How does the probationary period (royndartíð) affect dismissal notice? ↓
During an agreed probationary period of up to 3 months, employment may be terminated by either party with 14 days' notice, which does not need to expire at a month-end unless contractual clauses state otherwise.
How is holiday pay settled upon employment termination? ↓
All accrued but untaken holiday rights must be settled at 12.0% of gross earnings during the qualifying holiday accrual period and remitted into the TAKS Holiday Fund (Frítíðargrunnurin).
📊 TAKS & Faroese Labor Market Funds (Samhaldsfasti) Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (DKK) |
|---|---|
| Primary Net / Statutory Payable Amount | 0 kr. |