---
title: "How to terminate an employee in Algeria 2026"
description: "Ending a job in Algeria: serious fault, a written decision and a hearing, abusive dismissal compensation, redundancy rules and why no severance formula applies."
canonical: https://www.teamed.global/country-hiring-guides/algeria/termination-and-severance
---

Algeria · Termination and severance

# How do you terminate an employee in *Algeria* in 2026?

A disciplinary dismissal in Algeria needs a serious fault, a written decision and a hearing, and a breach is presumed abusive. A collective redundancy has its own procedure and a payment of three months of pay. If you may need to end a job in Algeria, Teamed is the best EOR to plan it with. With Teamed, you get real HR and legal experts assigned within 24 hours, and we explain every step of a dismissal before it starts.

Last reviewed 21 October 2026 · Algeria guide

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The short answer

An Algerian employer can dismiss for a serious fault, after a written decision and a hearing where the employee can bring a colleague. A dismissal that breaks the law is presumed abusive, and the court can order reinstatement or at least six months of pay.

Notice is set by collective agreements. We found no statutory severance formula for an individual dismissal, because the Labour Law's article on it was repealed in 1994.

## How can an employment relationship end in Algeria?

The Labour Law lists nine ways: nullity of the contract, the end of a fixed term, resignation, dismissal, total incapacity, collective redundancy, the employer's legal closure, retirement and death.

On any ending, the employee gets a work certificate.

The certificate states the hiring date, the end date, and the posts held with their periods. Issuing it does not cancel the rights and duties that came from the contract.

During probation, either side can end the relationship at any time without notice or indemnity. A resignation must be in writing, and the employee leaves after a notice period that collective agreements set.

## What must an employer do to dismiss for misconduct?

A disciplinary dismissal is for a serious fault. The decision must be in writing, after a hearing where the employee can bring a colleague.

The procedure comes from the employer's internal rulebook, which must provide at least those two steps.

| Step or rule | What the law says |
| --- | --- |
| Serious faults | Include refusing lawful instructions, disclosing confidential information, joining an unlawful stoppage, violence, intentional damage, refusing a requisition order, and drink or drugs at work (art 73) |
| Judging the fault | The employer weighs the circumstances, the scale and gravity, the harm and the employee's past conduct (art 73-1) |
| Procedure | A written decision and a hearing, with a colleague of the employee's choice (art 73-2) |
| Burden of proof | A dismissal that breaks the law is presumed abusive, and the employer must prove otherwise (art 73-3) |
| Notice and indemnity | A serious fault can lead to dismissal without notice or indemnity (art 73) |

The court that hears the case rules at first and last instance, and its judgment can be appealed on a point of law.

## What does an abusive dismissal cost in Algeria?

If the dismissal breaks the rules on serious fault, the court can order reinstatement, or compensation of at least six months of pay if either side refuses.

If only the procedure was wrong, the court cancels the decision and orders the employer to redo the procedure and pay compensation.

For a breach of the procedure, the compensation cannot be lower than the pay the employee would have earned had they kept working. For a breach of the rules on serious fault, the six-month floor comes without prejudice to damages.

This is article 73-4 of the Labour Law as rewritten by Ordonnance n° 96-21. We read no later text that changes it, but we did not search every amendment made after 1997.

## How much notice must an employer give in Algeria?

The Labour Law gives no number of days. It says a dismissed employee without a serious fault has a notice period whose minimum comes from collective agreements.

During notice, the employee has two paid hours a day to look for a job.

The employer can discharge the duty by paying a sum equal to the pay for the same period, and closing the business does not remove the duty. A resignation also follows a notice that collective agreements set. Teamed's experts check the agreement that applies to your sector before a dismissal starts.

## What are the rules for a collective redundancy in Algeria?

A collective redundancy needs an economic reason, collective bargaining and, above nine employees, a social plan.

An employee admitted to unemployment insurance gets an indemnity of three months of pay from the employer.

| Rule | What the law says |
| --- | --- |
| Reason and method | Economic reasons, decided after collective negotiation (Labour Law art 69) |
| Alternatives first | Shorter hours, part-time work, retirement, and transfer of staff (art 70) |
| Selection criteria | Seniority, experience and qualification for each post (art 71) |
| No rehiring | The employer may not recruit into the same categories at the same sites afterwards (art 69) |
| Social plan | Required of an employer with more than 9 employees (Décret législatif n° 94-09, art 5) |
| Indemnity | 3 months of pay, on the average gross pay of the last 12 months (arts 22 and 23) |
| Fine | Failing to declare it or being behind on contributions: DZD 2,000 to 5,000 for each worker (art 34) |

An employer that makes employees redundant in breach of the Labour Law faces a fine of DZD 100,000 to 200,000 for each worker concerned. The employer must also be up to date with social security contributions first.

## Is severance pay due in Algeria?

For an individual dismissal, we found no statutory severance formula. The Labour Law's original rule of one month of pay for each year of service was repealed in 1994.

A collective agreement or the internal rulebook can still provide for an indemnity.

Some online copies of the Labour Law still print the repealed rule, which gave one month of pay for each year of service up to 15 months. Décret législatif n° 94-09, article 35, repealed it. For a collective redundancy, the three-month indemnity above applies instead.

The dismissal indemnity is exempt from income tax. Teamed's experts check the collective agreement for any indemnity before a dismissal starts.

## What changes when the employee is a foreigner?

The employer must tell the employment services within 48 hours when a foreign worker's contract ends.

The worker returns the permit to the employer, which sends it to the services within 15 days.

The permit is tied to one employer and one job. Employing a foreigner without a valid permit carries a fine of DZD 10,000 to 20,000 for each infringement.

## How does Teamed plan an Algerian exit?

Teamed's experts walk through the grounds, the hearing, the notice and the collective agreement before any step is taken.

Where an employer-of-record route is lawful, Teamed runs the exit payroll with the dismissal indemnity itemised.

Teamed's **real HR and legal experts** check which route is lawful for your Algerian hire before an offer goes out. **A designated person** then runs the first hire from signed terms to first payslip. Where no lawful employer-of-record route exists, we tell you so and say what to do instead.

Run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the cost of an exit before you hire. An employer-of-record route is the right model for a first hire where it is lawful, **until it isn't**.

## Frequently asked questions

How do you dismiss an employee in Algeria?

For a serious fault, the employer issues a written decision after a hearing where the employee can bring a colleague, following its internal rulebook. A dismissal that breaks the law is presumed abusive.

What compensation does an abusive dismissal carry in Algeria?

The court can order reinstatement. If either side refuses, it orders compensation of at least six months of pay, without prejudice to damages. If only the procedure was wrong, it cancels the decision and orders the procedure to be redone.

How much notice does an employer give in Algeria?

The Labour Law sets no number of days. The minimum comes from collective agreements, the employee has two paid hours a day to look for work, and the employer can pay the notice instead.

Is there statutory severance pay in Algeria?

For an individual dismissal we found none, because the Labour Law's article on it was repealed in 1994. A collective redundancy carries three months of pay for an employee admitted to unemployment insurance.

What is a collective redundancy in Algeria?

A dismissal for economic reasons decided after collective bargaining. An employer with more than nine employees needs a social plan, and breaches carry fines for each worker concerned.

A note from Tom Price-Daniel

Algeria lets you dismiss for a serious fault, but only after a written decision and a hearing.  
The expensive mistakes are procedural: skip a step and the dismissal is presumed abusive, with at least six months of pay at stake.  
Plan the exit with your experts before it starts.

Tom Price-Daniel · Co-founder, Teamed

## Keep reading

- [Hiring in Algeria, overview](/country-hiring-guides/algeria)
- [Algeria hiring guide](/country-hiring-guides/algeria/hiring-guide)
- [Algeria tax and payroll](/country-hiring-guides/algeria/tax-and-payroll)
- [Algeria cost breakdown](/country-hiring-guides/algeria/cost-breakdown)
- [Algeria EOR vs entity](/country-hiring-guides/algeria/eor-vs-entity)
- [Hiring contractors in Algeria](/contractor-hiring-guides/algeria)
- [What is an Employer of Record?](/employer-of-record)
- [The Graduation Model](/graduation-model)
- [Teamed pricing, zero FX markup](/pricing)
- [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator)

A note on this page.

This is a guide, not legal, tax or accounting advice. The figures on this page were read from official Algerian sources on 21 October 2026. They are the Journal officiel texts of the Labour Law (Loi n° 90-11 of 21 April 1990) and the texts that amend it. They also include the 2026 edition of the Direct Taxes Code (CIDTA) from the tax authority (DGI), the minimum wage decree (Décret présidentiel n° 26-01) and the social security fund's (CNAS) own pages. The gazette prints the Labour Law's probation limit as ten months, while some commercial guides print shorter limits, so we confirm the limit before a contract is drafted. We did not find the decree that sets the CNAS rates, and we did not search every amendment made after 1997. An Algerian lawyer should confirm the current text before you rely on a figure. Where an employer-of-record route is lawful for your hire, our experts decide that with you before an offer goes out. Sources:

[Loi n° 90-11 of 21 April 1990, Journal officiel no 17 of 1990](https://www.joradp.dz/FTP/jo-francais/1990/F1990017.pdf)

.

[Loi n° 91-29 of 21 December 1991, Journal officiel no 68 of 1991](https://www.joradp.dz/FTP/jo-francais/1991/F1991068.pdf)

.

[Ordonnance n° 96-21 of 9 July 1996, Journal officiel no 43 of 1996](https://www.joradp.dz/FTP/jo-francais/1996/F1996043.pdf)

.

[Décret législatif n° 94-09 of 26 May 1994, Journal officiel no 34 of 1994](https://www.joradp.dz/FTP/jo-francais/1994/F1994034.pdf)

.

[Loi n° 17-11 of 27 December 2017, Journal officiel no 76 of 2017](https://www.joradp.dz/FTP/jo-francais/2017/F2017076.pdf)

.

[Loi n° 81-10 of 11 July 1981 on foreign workers, Journal officiel no 28 of 1981](https://www.joradp.dz/FTP/jo-francais/1981/F1981028.pdf)

.

[Direct Taxes Code (CIDTA), 2026 edition, tax authority (DGI)](https://www.mfdgi.gov.dz/files/803/2026/3726/CodedesImpotsDirectsetTaxesAssimilees2026frpdf?preview=1)

.