The labor settlement is an accounting operation that must necessarily be carried out every time there is a termination in labor relations with the company. For you to have a clearer understanding of this mechanism, it will be vital that you be clear about this concept in the world of work. Well, the settlement corresponds to the payment of the contractual benefits of the Federal Labor Law and is granted when a voluntary resignation is submitted by the worker to his employer. It is an act in which a worker and an employer validate or approve the term of the relationship labor.
From this perspective, it is a performance that you will have to go through at least once in your life. To the point that you will need to know the money that the company has to pay you. In this basically resides the work settlement. Beyond the work contract that you have: fixed, temporary or any other time allowed in current Spanish legislation. In any case, there are many other aspects that are linked to what is the work settlement. To the point that they cannot detach themselves from this concept in the world of work.
One of these concepts is the one that refers to severance pay. Because it will be reflected through this accounting document. You cannot forget that the settlement is a document that ends the existing employment relationship between the worker and the employer. On the one hand, the latter remains free of all obligations with respect to the former and pays him all the money owed to him as a result of the work carried out in his workplace.
What is charged in the settlement?
Another unavoidable aspect that must be taken into account is the amount derived from this accounting operation. Not in vain, the employer or employer must pay the workforce the proportional part that corresponds to them of the extra payments. As well as arrears or payroll that may owe you from previous months and the liquidation of vacations that have not been enjoyed so far. All in one go and that will go to your checking account within a period set by current labor regulations. This occurs when you leave a company for any circumstance.
On the other hand, not of minor importance is how is it calculated the work settlement. For you to better assimilate the concepts, nothing better than an example that shows what you should charge in these special cases. For a period of 160 days worked, you will be entitled to the following benefits:
- Daily salary: 1.000 euros.
- Holidays (13 days per year)
- Vacation premium, which will correspond to approximately 30%.
Redundancy payment
It will be another of the most relevant effects of the cessation of professional activity. It will be the amount that they must pay you when you finish or stop your work. Well, there will be many items that will be included in this labor concept. First of all, the days worked each year. In the case of an unfair dismissal, it will be up to 45 days per year until 2012, when the Labour Reform and that it reduced these terms to 33 days per year.
But any non-payment will also be included in other concepts: vacations, extraordinary payments. All these items together is what will ultimately determine the money that the worker will have to take as a result of his years worked in the company. Where the greater the number of years worked, the more money that will correspond to you for this concept. In any case, it will go down very quickly to your checking account so you can lean on this amount until you find a new job. However, severance pay does not have to be linked to what the severance pay really is, which is the topic we are dealing with in this article.
Effects of severance pay for dismissal
A settlement of these characteristics entails a series of actions that you must necessarily assess. Among other reasons because they will affect your relationships with the rights you have as a worker that you are. Not surprisingly, some of the following scenarios that we point out below may occur.
- This document can be signed with certain conditions that can later be altered by either party.
- It may happen that the worker, that is, yourself, can show your disagreement with some of the terms set forth in the contract. Some of the most common are those that refer to the amount that you will have to charge or, on the contrary, to the contractual termination itself.
- If the settlement were altered by the other party, and for any circumstance, it may be claim object or even a complaint on your part. For which you will have a maximum period of eight to correctly channel this demand. Generally with positive results for your personal interests. Not in vain, it will deprive the preservation of your labor rights above other considerations.
What data is necessary?
For the preparation of a correct and optimal form of this document it will be necessary to take into account a series of information about the work that you have developed up to now. Because among other reasons, they will determine in the end what is the amount that you are going to charge as a result of these calculations. Do you want to know which are some of the most relevant? Well, pay a little attention because it will generate a great utility for you from now on. Not surprisingly, you can go through this process sometime in your professional life.
Years worked: it will be a more than relevant parameter so that you know which is the settlement that will correspond to you. It is not the same to present yourself with a work history of a few months than to have been in your job for more than ten years. The difference between the two scenarios is more than significant.
Contract conditions: This is another of the variables that the employer or employer must take into account. With such relevant data, such as the type of contract you have formed, the number of extraordinary payments you have per year or any other circumstance that is expressed in the employment contract. Depending on all of them, you will have a different settlement and that can induce you to come out better or worse off from this situation that can occur at any time.
How to formalize this document?
You can be advised by a professional to show what is the settlement that corresponds to you as a termination of work activity. However, you have other very practical channels that can be approximated to the amount that will be represented by these operations. In any case, it will be completely necessary for you to know if the compensation is for unfair dismissal or on the contrary it is not. Especially since there are some very subtle differences that will lead to the amounts differing substantially in one case or another.
In any case, it may well be that you do not feel like calculating the settlement by hand. Well, there are no problems of any kind because there are countless websites that will help you calculate the settlement online. Whatever the reason for the cessation of activities derived from professional activity. That is, either due to voluntary withdrawal, end of contract or even as a consequence of an ERE that has occurred in your company. At least it will allow you to have an idea about where the amount of the settlement that the company where you are or have worked can go can go.
Amount that will correspond to you
So that you know the settlement that will correspond to you, nothing better than an example so that you have no doubts about this concept. To calculate the annual salary You have to multiply the salary that you have signed in the employment contract. 1.500 * 12 = 18.000 euros and add the two extra payments 1.500 * 2 = 3.000 euros. It will be the basis on which this monetary endowment will be determined. As you may have seen, it is a mathematical operation that is very easy to calculate. Although it will also be necessary to analyze the other variables that may be included in the contract signed between the company and the worker.
Another aspect that must be analyzed is to know whether or not your dismissal is unfair. In this sense, you should know that the law allows the employer terminate the employment relationship with its workers in certain situations, when, for example, ineptitude, lack of adaptation, lack of assistance, or for economic, technical, organizational, production reasons or due to force majeure occurs.
Not surprisingly, depending on the type of dismissal, the settlement will vary substantially. To the point of generating very appreciable differences between both models in labor relations. This aspect is much more complicated than the previous ones and you will have no choice but to seek the professional services of an expert in labor matters. So that the calculations are adjusted to your personal circumstances as a result of your departure from the company. Beyond other technical considerations and may even derive from the employment contract.