Collecting severance pay is an issue that many workers are not clear about, because they do not know how to calculate it or they do not know what factors to include in it; Likewise, for employers it is a delicate issue, since the accounts must be clear when liquidating a person and thus avoid sanctions by regulatory entities. (HERE YOU CAN REGISTER YOUR RESUME AND FIND A JOB).
What is the labor liquidation?
The labor liquidation in Colombia is a procedure that arises at the moment in which a labor contract is terminated, either with just cause or without just cause. This allows the person toreceive payment of all their feesfrom him, which correspond to the time of work in the company.
Immediately the contract is terminated and said liquidation is paid, the worker and employer will no longer have any employment relationship.
What are the factors that are taken into account in the labor liquidation?
When an employment contract ends, the employer must take into account a series of concepts, which will have to be included in the settlement and thus be able to make the corresponding payment, these are:
- Salary: days that have been worked before the termination of the contract. Overtime, night, Sunday and holiday surcharges, commissions, bonuses and transportation assistance are also considered.
- Social benefits: here the concepts of the service premiums of the last semester worked, severance pay and their corresponding interests caused in the last year of work are calculated.
- Vacations: vacations that have been generated during the contract and that are pending to be claimed, will be recognized in money at the time of liquidating the worker.
- Parafiscal contributions: everything related to health, pension and compensation fund. It should be clarified that these concepts are paid directly to the entities providing the services.
What happens if I am fired without just cause?
Firstly and to clarify, the worker DOES have the right to a liquidation; however, since it was a termination of the contract without just cause, the liquidationmust include a concept of compensation.
The Substantive Labor Code of Colombia (CST) in its article 65, says that:
“If at the termination of the contract, the employer does not pay the worker the wages and benefits due, except in cases of withholding authorized by law or agreed by the parties, he must pay the employee, as compensation, a sum equal to the last daily salary for each day of delay
How is severance pay calculated?
It should be clarified that not all processes are the same, since the salary earned by the worker is taken as the basis; Likewise, the amounts that the employer could have earned for commissions and bonuses should be considered.
Now, for the liquidation, the salary that the worker earned, the days he worked, what type of contract he had, must be taken into account, in order to make a calculation correctly.
How much time does an employer have to liquidate a person?
Currently, in Colombia, there is no regulation that indicates a stipulated time for the employer to liquidate a worker. Many believe that as long as the termination of the contract is presented, the liquidation must be carried out instantly, but the reality is different.
In many situations, a worker resigns unexpectedly and the employer does not have, at the moment, the resources to make the liquidation effective.
In one of these cases, what is recommended is to agree on a term between the two parties to carry out the settlement. What is suggested is that this period does not exceed 15 days. The worker must keep in mind that if the payment of the settlement was never made, he can make a request before a labor judge, so that he can make it effective and makecompensation be paid.
In conclusion, the labor liquidation is the best means for a worker-employer end in the best terms. If doubts persist, the most recommended is to seek the advice of professionals who are dedicated to this subject.