The sudden suspension of USAID funding has forced many NGOs and businesses in Afghanistan to either reduce services or even shut down operations. With financial uncertainty growing, organizations are looking for ways to manage their workforce while complying with Afghan labor laws.

Under Afghan law, employees who lose their jobs due to downsizing or business closures must receive severance pay ranging from one to six months' salary, depending on their years of service. Employers planning mass layoffs must also seek approval from the Ministry of Labor and Social Affairs (MoLSA) and submit records of terminated employees to MoLSA. Pension benefits and unpaid wages must also be settled before employees are officially let go.

To avoid immediate layoffs, some organizations are considering temporary suspension instead of termination. Afghan labor laws require employers to continue paying full salaries for the first two months of a work stoppage. If the stoppage lasts two to four months, employees must receive 50% of their wages. After four months, employers may assign workers to another role or introduce them to MoLSA for job placement elsewhere.

For NGOs and businesses facing difficulties, temporary suspension helps delay layoffs while waiting for funding. However, with no clear timeline for USAID support, organizations must plan carefully to manage their workforce and operations. For legal guidance and assistance, contact Kakar Advocates at Office@KakarAdvocates.com