When looking at the different regulations, we can, in general, distinguish a few different systems applicable in case of individual termination of the employment, as reflected in the pie chart below.
Notice period or payment or an indemnity in lieu of notice (6 countries): In these countries, the employment contract can be terminated by serving a notice period only, or by paying an indemnity in lieu of notice.
Payment of a severance indemnity (15 countries): In these countries, dismissal can occur after payment of only a severance indemnity, without any notice period, or with only a short notice of a few days being required.
Notice period/indemnity in lieu of notice combined with severance indemnity (37 countries): In the majority of the countries, a severance payment is due in addition to observing a notice period. The notice period would typically be quite short and capped at a number of months. A number of countries have also capped the total amount of indemnity in lieu of notice or severance pay that an individual can receive, irrespective their salary. This category also includes about 15% of countries where there is not any legal requirement to pay a severance indemnity, but it is common practice to agree on one with the employee. In a few of these countries, the severance pay is not an amount payable upon termination of the employment contract, but the sum of amounts accrued by the employer throughout the employment term, and deposited in a special fund or account.
Other systems (4 countries): There are of course also a few countries that do not fall under any of the above common systems but have a different system, such as the "at will" concept in the US, where the employer can terminate an employment contract at any time without any reason (although it is customary to provide two weeks’ notice upon termination), or Ecuador, where a strict procedure ("visto bueno") has been put in place to obtain prior permission from the labor inspector, whereby an amount equal to one month's salary must also be deposited for final settlement