Calculation of Dismissal Compensation

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bitheerani674
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Calculation of Dismissal Compensation

Post by bitheerani674 »

When terminating a contract with your employees due to expiry, you must pay compensation for the end of the contract, in accordance with articles 344 and 345 of the Labour Code.

How to Calculate Compensation?
The amount to be paid to employees is related to the start date and duration of the contract, the value of the base salary and possible seniority payments.

If the contract with the employee was signed before 2011, the compensation is as follows :

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From the start of the contract until 10/31/2012 - 3 days of office 365 email address data salary + daily allowances per month (contract of less than 6 months) or 2 days of base salary + daily allowances per month (contract of more than 6 months);
From 10/31/2012 to 09/30/2013 - 20 days of base salary + seniority payments per year;
From 10/01/2013 - 18 days of base salary + seniority benefits per year (first 3 years) or 12 days of base salary + seniority benefits per year (after 3 years).
If the contract with the employee was concluded after November 2013, the following rules apply:

Fixed-term contract - 18 days of base salary + seniority payments for each year;
Permanent contract - 18 days of base salary + seniority allowances for each year (for the first 3 years) or 12 days of base salary + seniority allowances for each year (for the following years).
If you have any doubts, you can consult the ACT simulator to obtain indicative values. In addition to calculating compensation in the event of dismissal, this simulator also calculates the values ​​of holiday and Christmas bonuses.

What are the Lawful Termination Methods?
It is only possible to terminate a contract with your employees for certain reasons provided for by law, namely in article 340 of the Labour Code :

Dismissal due to unsuitability (constant reduction in productivity and/or quality of work, repeated breakdowns in the equipment connected to the workplace, risks to the safety and health of the worker, other employees or third parties);
Dismissal due to a fact attributable to the employee (for example, continuous and unjustified absences or failure to comply with established employment obligations);
Collective dismissal (in the case of computerization of services, economic and financial problems, among others);
Dismissal due to job termination.
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