In the private sector, compensation is not an automatic entitlement. It arises only in certain circumstances, such as when a contract of employment ends for a reason not attributable to the worker or when a worker resigns or retires after 5 years of service.

In the public sector, an employee (including an expatriate on local letter of appointment) who has continuity of service and who leaves the Public Service in one of the following circumstances is eligible for payment of compensation:-

1. Resignation;
2. On reaching national retirement age of 63 years;
3. Death (payable to legal heirs);
4. Appointment on contract terms under the Public Sector Commission for period prior to taking up a PSC contract;
5. Termination on grounds of failing probationary period;
6. Premature and voluntary retirement;
7. Redundancy;
8. Completion of part-time employment;
9. On medical grounds following the decision of a Medical Board;
10. In the public interest;
11. Following marked deterioration in work and personal standards where remedial measures have been to no avail;
12. Transfer.

Source: Government of Seychelles