How to liquidate an indefinite-term contract without just cause?

Asked by: Isabel Atencio Segundo | Last update: January 5, 2022
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If the worker has an indefinite-term contract and is dismissed without just cause, he must receive compensation of 30 days’ salary for the first year worked and 20 days for each additional year. If the full year is not fulfilled, the liquidation must be made according to the time worked.

How is compensation for dismissal without just cause calculated?

In the event of dismissal without just cause, the employer must pay the worker compensation equivalent to one month’s salary for each year of seniority or fraction greater than three months, considering the best remuneration of the last year (or the time the service was rendered). if it were less).

How to calculate settlement end of contract?

How is compensation calculated

  1. The simplest is to take the gross annual salary and divide it by 365 days. If the salary in the last year has not changed.
  2. If you don’t know the annual salary, you can take the monthly salary and if you have prorated extra payments, multiply it by 12 and divide it by 365.

How is the liquidation of an indefinite term contract calculated?

Fixed term and indefinite contract

It is calculated as follows: Severance payments: (Monthly salary x Days worked) / 360. Severance interest: (Severance payments * Days worked * 0.12) / 360. Vacations: (Monthly salary * Days worked) / 720.

How is the liquidation when the employment contract ends?

Settlement is an indemnity that the employer is obliged to give to the worker, provided that the causes of the termination of the contract that protects the employment relationship are unrelated to the latter or to his or her performance. … The settlement is given to the worker by the employer when the employment relationship between the two is terminated.

15 related questions found

How is compensation calculated?

Labor compensation must be calculated based on the worker’s average wages during the last six months of the contract, or the time he has worked, if said term has not been adjusted. It is equivalent to one month of salary for each year worked or proportional.

How to calculate dismissal without cause?

Compensation for dismissal without just cause established by Argentine legislation is equal to one month’s salary for each year of service or fraction greater than three months, based on the best monthly, normal and usual remuneration earned by the worker, corresponding to the last year or length of service, if any…

How is compensation for arbitrary dismissal calculated?

Article 38 of Supreme Decree 003-97-TR states that compensation for arbitrary dismissal is equivalent to one and a half ordinary monthly remuneration for each full year of service with a maximum of 12 remunerations. The fractions of the year are paid for twelfths and thirtieths, as appropriate.

What is paid to a worker for unjustified dismissal?

In principle, the settlement for unjustified dismissal must contain the payment of 3 months’ salary, this is as compensation. Likewise, 20 days of salary must be paid for each year worked. … Added to this is the payment of the proportional parts of the Christmas bonus, vacations and vacation bonus.

How is severance pay calculated?

The calculation of compensation for unjustified dismissal is made considering one month of salary for each year of service or fraction greater than three months, based on the best gross monthly, normal and usual remuneration earned by the worker, corresponding to the last year or time of services if it is less.

When does an arbitrary dismissal occur?

For our legal system, arbitrary dismissal is configured in two scenarios: Firstly, when the worker is dismissed for not having expressed cause or without cause or secondly, when the worker is dismissed without being able to demonstrate the cause invoked in the trial or Judicial process.

What is meant by arbitrary dismissal?

Arbitrary dismissal is when a worker is fired without cause, or when cause cannot be proven. It can be executed following or not the legal procedures, but it must be understood that all dismissal must be due to an express and proven cause.

How to calculate severance pay 2021?

You have to divide the gross salary by 30 and then multiply it by the days worked in the last month. Example to calculate compensation: receiving a monthly salary of $50,000 and working until April 10, 2021: $50,000 / 30 = $1,666.66.

How is seniority compensation calculated?

Compensation for seniority is derived from the calculation that the employer must pay 1 full salary per year worked to the employee. In addition, if you worked a fraction of more than 3 months, it must be computed as a full year in the compensation.

How is compensation for vacation not taken calculated?

– Vacations not taken (settled for the vacations that correspond to you for the current year) = Higher salary of the last semester divided 25 by the number of vacation days that correspond to you for the current year.

What compensation corresponds to me for an ERE?

The compensation for dismissal of the workers affected by an ERE can be negotiated between the employer and the representatives of the workers. The law establishes that it will always be at least 20 days per year worked, with a maximum of 12 monthly payments.

How do I know how much I have to be paid if I am fired?

When a company dismisses a worker with an objective dismissal, (for justified economic, technological, etc. reasons) it has to pay him, at the same time as delivering the dismissal letter, a compensation of 20 days per year worked, and prorated for the shorter time year.

How much do I get for the term of the contract?

3 months of severance pay. 20 days salary for each year worked. Seniority bonus equivalent to 12 days of salary for each year worked. Payment of proportional parts of Christmas bonus.

How is the payment in case of contract termination?

At the termination of the employment relationship, the employer must liquidate the employment contract until the day the worker rendered his services, in terms of salary, vacations, social benefits and compensation caused, if applicable.

What should I do in the event of an arbitrary dismissal?

For this there is a document called Arbitrary Dismissal Verification Act. You can download this document from SUNAFIL and go directly to the police station where the company is located to verify the prohibition at your workplace.

How much does a worker receive for arbitrary dismissal?


“The amount of compensation is equivalent to one and a half remuneration per year of service, up to a limit of 12 remunerations,” he indicates.

What is meant by unfair dismissal?

Unjustified dismissal is the termination of the employment relationship by the unilateral will of the employer, without actually verifying any of the grounds for termination provided for in the Federal Labor Law.

How many reprimands are cause for dismissal?

In cases where there is a labor record before the Labor Directorate (DT) about delays, breach of contract, poor performance, inappropriate behavior, among others, the employer can accumulate up to three reprimands and justify the dismissal of the worker.

When does untimely dismissal occur?

– Untimely dismissal consists when the employer terminates the employment contract and separates the worker, without having legal cause to protect him, or when there is legal cause, he does not observe the procedure established in the Labor Code to terminate. The employment relationship with…