2023-11-25 20:40:00
Amid the intricate universe of labor relations, the rupture of employment contracts triggers a series of changes in the rights and duties of both the employer and the employee.
However, it is crucial to understand the funds to be received by terminated employees, depending on the type of termination.
IOB’s specialist in labor and social security law, Mariza Machado, answers the main questions about severance pay owed to professionals governed by the CLT (Consolidation of Labor Laws).
Severance Pay: Understand Your Rights
When terminating an employment contract, several elements, such as Christmas bonuses, vacations and other employment obligations, must be calculated and paid as severance pay. The main funds include:
13th salary: Calculated based on 1/12 of the remuneration per month of service, considering the fraction equal to or greater than 15 days as a full month.Early warning: It varies from 30 to 90 days, plus 3 days per year of service provided.Expired Vacations: It guarantees the employee simple or double remuneration, depending on the case.Proportional Holidays: Calculated at the rate of 1/12 per month of service, plus one third.Compensation for Early Termination of Fixed-Term Contract: Equivalent to 50% of the remuneration until the end of the contract.FGTS Termination Fine: Corresponds to 40% of the amount deposited in the linked account, in case of dismissal without just cause;Salary Balance: Payment proportional to the days worked in case of termination before the end of the month.
Severance Pay in Different Types of Termination
According to Mariza Machado, each type of termination results in different severance pay, becoming more or less comprehensive depending on the reason for the termination of the contract. Some examples include:
Exemption for Just Cause: Balance of salary and vacation pay plus the constitutional third.Dismissal without Just Cause: Various amounts, such as salary balance, accrued and proportional vacations, advance notice, proportional 13th salary, and a fine of 40% of the FGTS.Termination by Agreement Between the Parties: It involves salary balance, accrued and proportional vacations, advance notice, proportional 13th salary, 50% of the advance notice compensated, and a fine of 20% of the FGTS.Dismissal at the Employee’s Request: Salary balance, accrued and proportional vacations, plus the constitutional third, and proportional 13th salary.Indirect Termination: Right to the same funds as those who are dismissed without just cause, including a fine of 40% of the FGTS;Early Termination of Fixed Term Contract: They involve various amounts, with emphasis on compensation corresponding to 50% of the remuneration for the days remaining until the end of the contract.
Payment deadline
Mariza Machado highlights that payment must be made within 10 calendar days after the end of the contract, being in full and without the possibility of installments. Failure to comply with this deadline entitles the worker to take action to the Labor Court.
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