To correctly contract termination calculation you need to use the following data:
- Type of termination
- Monthly Salaries of Employee
- Holidays overdue and proportionate
- Thirteenth proportional
What is contract termination calculation?
A termination of employment contract is a request for disruption of work obligations between an employee and a company. It is one of the most stressful people management and contractual termination may be effected by both parties.
Why do: The termination of an employee's employment contract contemplates a series of variables that must be kept in mind to avoid making any mistakes when calculating. That's why it's important to pay attention to details so you do not have problems with inaccurate calculations. Then you can find the data to do the calculation, as well as how to do it.
Learn how to calculate contract terminationWe'll see how to calculate step by step termination using an excel spreadsheet as an example:
Before starting to do the calculation it is important to understand some concepts and terms.
When the employee decides to leave the company. In that case it loses the right to withdraw from the FGTS at that time, although the money remains in the linked account for future withdrawal.
Resignation for just cause
When the employee is dismissed for having committed a fault that justifies a just cause. Similarly, the company does not deposit the 40% of the FGTS and does not release the withdrawal into the linked account.
Resignation without cause
When the employee is dismissed by decision of the company. In that case, everything stipulated in the right to the employee by the CLT must be paid.
Indemnified prior notice / prior notice worked
For either dismissal or dismissal without just cause, an employee and company must agree on the payment of prior notice. However, either side may decide to pay notice. In the request for dismissal the employee will have the money discounted from the termination. Already in dismissal without just cause the company adds one month to the value of the termination. If it is worked there will be no liens on either side, only the normal maturity.
What the employee should receive in any situation
The monthly salary is nothing more than the month worked, plus extra hours and additional if applicable.
Holidays overdue and holiday proportional
If the employee has expired leave these should be paid together with the calculation of termination. Also the vacations of the months worked and that would win in the next vacations must be paid.
As the thirteenth must be paid at the end of the year, at the time of dismissal, the months of the current year must be paid. Always on account expired months / 12.
What should an employee receive when dismissed without cause?
As described above the company has the right either to choose to pay the employee or let him work for another month.
Release of the guarantee fund by length of service (FGTS) and fine of 40% due by the company
Every month the company deposits the amount related to the FGTS. This serves as security for an employee who is dismissed without cause. So he can draw when this situation occurs. In addition to the monthly deposits, the company is obliged to pay 40% of the total amount by way of a fine for having dismissed the employee without just cause.
These are the calculations needed to be made at the time of dismissal, but each of these calculations has its own particularities.