Labor Law
The Federal Labor Law is expected, at any time the worker or the boss can give for the relation of work finished, already be when the worker decides to finish it or when the boss tries to finish it.
To the moment to leave a job or to be dismissed, there are two concepts that it is important that you know, to receive everything to what you have right according to the law.
Settlement
The settlement it happens when the worker and the boss finished the relation of work voluntarily, you must receive a final letter must include all your data and break down the concepts for which they are paying.
You have the right to receive a settlement when:
- Voluntary renunciation of your employment.
- Your temporary contract is finished.
- You are fired, it does not matter if it is justified or unjustified.
- Sickness disability, you will also be paid the seniority bonus and invalidity bonus.
- Death of the worker.
The settlement must include:
- Days worked and not paid in the month.
- Proportional part of the bonus.
- Proportional part of your vacation.
- Other benefits included in your contract.
Liquidation
A liquidation, also know as labor compensation, only applies when the following conditions are present:
- The company revokes your contract, for reasons other than your work performance.
- They dismiss you unjustifiably.
- Resignations due to a lack of seriousness committed by the boss.
The liquidation must include:
- 3 months of salary, 20 days of salary for each year of work.
- Seniority premium.
- Salaries due, with a limit of 12 months when it is unjustified dismissal.
* A liquidation must include the mentioned in the settlement.
The seniority premium consists of 12 days per year worked once the worker reaches 15 years old, with a cap of 2 times the daily wage of the geographical area.
Upon receiving the settlemen and the liquidation, an income tax must be paid, since in tax terms the Tax Administration Service (SAT) is accounted for as an income, for which four fundamental aspects must be considered:
- Exceptions on settlements.
- Exceptions on compensations.
- Withholding of ISR on settlement.
- Withholding of ISR on liquidation.
Knowing your rights, obligations and the employment situation in which you find yourself will help you to be better informed when it is your turn to receive a settlement or liquidation.
At QuAndrans law and finance we offer the payroll outsourcing service if you need to perform a calculation of settlements and liquidations of personnel.
> You may be interested in reading our entry about know the benefits to which you are entitled as a worker.
