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Employers must pay termination payments to employees when they end the employment contract. See the most relevant ones!
Every worker is entitled to termination payments when ending their contract with the company, regardless of the reason. Thus, the employer must guarantee the employee an amount that supports them while they seek a new job opportunity.
The amount of these payments varies and is based on factors such as the duration of the contract and the reason for its termination. Therefore, if the company calculates them incorrectly or fails to comply with the law, it may face fines.
Contract termination
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Normally, the company makes the payment after the employment contract ends. To complete this process, both parties need to resolve any outstanding matters related to the contract. Therefore, companies are responsible for paying the termination payments.
The employee receives these payments both if the company dismisses them and if they decide to leave on their own. In other words, regardless of how the contract ends, the employer must make the payment. This process must be completed within 10 days after the contract ends.
Termination Pay Categories
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At the end of the employment contract, the employee is entitled to:
- Outstanding wages;
- Overtime;
- Night shift differential;
- Vacation;
- 13th salary;
- Notice period;
- Termination FGTS;
- 40% fine on the FGTS.
Termination
There are several reasons for the end of the employment relationship. One of them is dismissal without just cause, where the contract ends without specific reasons. This type of dismissal guarantees the highest amount in termination payments and gives the employee the right to the FGTS key and instructions on how to obtain unemployment insurance.
There is also dismissal for just cause, which occurs when the employee breaks established rules. Thus, acts such as assault, being intoxicated at work, recurring absences, and theft are significant reasons for applying the maximum penalty stipulated by the CLT.
