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However, these compensations depend on the causes of the settlement and the industry in which the employee operates. It is important to take into account contractually agreed compensation, voluntary compensation and compensation for months of service, which are usually used in the construction sector with works or work projects. The latter is considered temporary, and an allowance is paid for months of service or work instead of years. In this case, the indemnity must be paid for each month of work plus 15 days according to the date of conclusion of the contract between January 1, 2019 and June 30, 2020. By knowing the benefits that the employee legally enjoys, you practically know how to calculate severance pay, but it`s worth going point by point. For example, we do the math for an employee with a salary of 300,000 pesos. Remuneration takes into account the 30 days of the last monthly remuneration for each year of service and a fraction of more than 6 months provided to the employer without interruption. The amount of remuneration is limited to 90 UF depending on the employee`s salary and is limited to 330 days or 11 months. This provision shall not apply to persons recruited before 14 August 1981. Temporary section 7 of the Labour Code stipulates that they must be paid for all years of continuous service, even if the 11 months described above are exceeded. The ceiling of 90 p.e. applies to the basis for calculating the remuneration for years of service, as provided for in the third paragraph, where reference is made to `the remuneration provided for in this Title`.

Following our example, imagine that the employee was fired overnight. You must therefore include in your return 300,000 pesos, which corresponds to remuneration with the equivalent of a salary. Indeed, the employee may well agree with his employer in the employment contract or in an attached document that in the event of dismissal due to the needs of the company or dismissal due to expulsion or even for any other reason, his compensation will be paid without the legal limit of 90 dollars, which will be paid in all cases, etc. They can agree on what they want, as long as this improves the legal basis set by the legislator. If you are about to resign or are fired, it is necessary to terminate the employment contract and generate a settlement. Although there is no specific date for the payment of severance pay, the Directorate of Labour “stipulates in its case law that this obligation must be fulfilled by granting the aforementioned settlement immediately after the end of the provision of the service with the corresponding legal formalities and only if the parties agree that it would be possible to set a deadline for its payment”. In this way, labor and social security standards are set in a timely manner and the employee can be reassigned to another company. Whether it`s an employee or an employer, knowing how to calculate severance pay allows you to claim and respect rights, ensuring a healthy working relationship between both parties. Keep in mind that this process can be automated through compensation software. Although there are simulators for this, it is necessary that you know how to calculate a settlement and know all the factors involved. In our case, the worker was 3 years and 9 months old.

Assuming that the employer was correct in recognizing all previous earnings, he exercised his right nine months ago and that is the time limit to be taken into account in calculating the amount of the prorated leave to be included in the regulation of his settlement. Thus, we would have: Once the contract is concluded, the assets due as a result of the termination of the contract must be paid, which are set out in the regulations. In addition, any other debt owed by the employer to the employee must be paid. In the context of remuneration, invoicing takes place when the employment contract agreed between the parties is terminated and the employee no longer provides services to the company or employer. According to the Directorate of Labour, a regulation consists of “an act by which an employee and an employer ratify or authorize before a minister of religion the termination of the employment relationship and his consent to the provisions of a written document called a regulation”. Before going into the details of the calculation, it is necessary to know what will be paid. The regulation requires that the following be paid and included in the work account: Another authority available to the employee is to note it on the statement if there is a discrepancy with the amounts, even if other payments are accepted at the time of signing. This is a process that raises many questions, as several factors must be taken into account when generating and paying the bill. Before payment, it is necessary to check, among other things, whether it was a resignation or dismissal, the reason for the dismissal, whether there was a dismissal or not. Once these issues are resolved, severance pay can be paid. Before starting the calculation, you must mention the conditions of validity of a statement: Here is an example of a billing calculation.

The final amount corresponds to the sum of the elements listed above, so the work would be as follows: We are lawyers in labor law and work from Aríca to Punta Arenas in labor matters. We defend the employee who considers his dismissal as unjustified or inadmissible because the facts invoked by the employer at the time of the termination of the contract are not real or that the reason for the dismissal is not sufficiently justified, and try to increase his legal compensation. To this end, we advise the employee on his reservation of rights. This payment corresponds to 30 days of the last monthly salary accumulated by the employee at the time of dismissal for each year of service and each fraction of more than 6 months, without interruption with a maximum of 11 years. Similarly, remuneration for years of service higher than that fixed by law may be agreed by individual or collective agreement. Could the employee agree with his employer that his compensation must be paid in the event of dismissal without taking into account the legal limit of 90%? These are all days when services have been provided and have not been or have not been paid. This amount must be paid and included in the statement. In order to calculate statutory holidays in payroll, it is important to consider statutory holidays per year of service, prorated working days and calendar days. In addition, the concepts are not mixed and taxable benefits or assets are not taken into account in the calculation.

It corresponds to Saturdays and Sundays, in addition to the holidays that an employee receives during his employment contract. Billing is paid on a 30-day basis, not business days, so you should always factor in weekends and holidays that accumulate during the month. In accordance with article 169 of the Labour Code, payment must be made only once and at the time of signing the settlement document; or, in the event that the parties agree on the part of the payment, it may be agreed in instalments, which record, where appropriate, the respective adjustments and interest for the period and have been ratified before the labour inspectorate.