What are the four types of compensation?

What are the four types of compensation?

Worker’s Compensation Example

Upon termination of employment, the employee is entitled to a severance payment as compensation for services rendered during a certain period of time. The severance pay is not the same for all cases, it depends on considerations such as the type of dismissal.

That is why not in all cases the company is obliged to pay severance pay. This occurs if the employee voluntarily terminates the labor relationship, must retire or is considered medically unfit to perform his or her duties, among other aspects.

Depending on the circumstances and the type of dismissal, the type of severance payment the employee will receive will depend on the circumstances and the type of dismissal. This will influence the number of days that will be counted in favor of the economic compensation.

If the employment relationship was established on an occasional basis or for a specific period of time, the labor compensation must be guaranteed from the employee’s salary. You will find more information in our article on temporary contracts.

How much is the indemnity?

The indemnity for dismissal without cause is also called indemnity for seniority, and is provided for in Article 245 of the Labor Contract Law. It is equivalent to ONE MONTH of gross salary per year of work or fraction greater than three months of work.

What is a special indemnity?

The special lump-sum compensation to be paid to orphans in the event of death due to an accident at work or occupational disease shall consist of one month’s salary of the regulatory base, which amount shall be increased by the amount resulting from distributing among the beneficiary orphans the amount of six …

How much severance pay do I get if I resign?

By resigning, you “waive” your severance payment. Now, even if the resignation does not generate any severance payment, you must always be paid the final liquidation (days worked in your last month, pending vacations of the last year and the proportional Christmas bonus).

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Worker’s compensation in Colombia

A labor dismissal, in turn, apart from being disciplinary or objective, can be qualified as fair, unfair or null. Also here you will find all the information about it, clarifying the doubt of whether there are types of unfair and fair dismissal.

In any case, there are two types of dismissal: objective and disciplinary. Whether there is one or the other depends on the causes that led to the termination of the contract. This categorization is reflected in Section 4 of the Workers’ Statute, as labor laws on dismissals.

A disciplinary dismissal can be declared fair, unfair or null and void in a court of law – in a trial or after being agreed beforehand in an act of conciliation between the parties involved. Exceptionally, the unfairness can also be recognized by the company in the dismissal letter. In any case, let us look at the three possible classifications of this type of dismissal and the indemnities that can be generated.

A disciplinary dismissal will be classified as fair when it is established that the employer’s decision was just, and that there are indeed sufficient causes to proceed with the dismissal of the employee. In this case, no compensation is possible.

How is compensation paid?

The indemnity for dismissal without just cause established by Argentine law is equal to one month’s salary for each year of service or fraction greater than three months, based on the best monthly, normal and customary remuneration earned by the employee, corresponding to the last year or time of service if it is more than three months….

How is a worker’s compensation paid?

The common form of indemnity is money, therefore, the indemnity is usually monetary. If we transfer it to the labor field, the indemnity is a sum of money that an employer must pay to its employees when it decides to terminate the employment relationship improperly or without justification.

What do you get paid when you resign?

The Company must pay the wages owed, proportional vacations, proportional Christmas bonus on vacations and Christmas bonus proportional to the part of the six-month period worked, overtime, and all other wage items owed during the last two years of the labor relationship.

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Indemnity Federal Labor Law

Severance pay is a labor right of all workers and refers to the amount of money that the employer must offer to the employee for termination of the contract before the established period.

3.  Mixed indemnity. This type of severance payment applies to contracts signed before February 12, 2012. It is necessary to calculate the amounts of two different periods and add them together to obtain the final severance payment:

Although severance pay is a concept that is often confused with severance pay, in reality it has nothing to do with it. While severance pay depends on the causes of the termination, the settlement is paid whenever a contract ends. To find out what your severance pay will consist of, there are several factors that come into play:

1. The salary for the days you worked that month. The company must pay you the salary for the days corresponding to the month you worked. In addition, if you have been informed through a notice, you will also be paid for the days you are going to work. At this point you must remember that, if you should have given such notice and you did not do so, you will be deducted one day’s salary for each day of notice that you have not given.

How is the seniority indemnity calculated?

How to calculate the seniority indemnity? The seniority indemnity is based on the calculation that the employer must pay 1 full salary per year worked to the employee. In addition, if the employee worked a fraction of more than 3 months, it must be computed as a full year in the severance payment.

How is severance pay calculated in Colombia?

As mentioned above, the indemnity will be calculated based on the days remaining to terminate the contract. Then, the salary is divided by the corresponding 30 days and multiplied by the days remaining to terminate the contract.

When must the worker indemnify the employer?

“If it is the employee who terminates the contract without just cause, he/she shall pay the employer an indemnity equivalent to thirty (30) days of salary. … This indemnity includes loss of profits and consequential damages.”

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Compensation for unjustified dismissal

There are different ways of doing so: justified or unjustified.    The implications of such decision will be different in each case. In this article we will focus on unjustified dismissal, more precisely on defining severance pay.

If we transfer it to the labor field, severance pay is a sum of money to be paid by an employer to its employees when it decides to terminate the employment relationship unfairly or without justification.

In this sense, the indemnity is intended to remedy the loss of the job and the wages received thanks to it. By guaranteeing financial compensation, it is expected that the employee will be able to meet his expenses for a certain period of time.

In order to talk about compensation for unjustified dismissal, we must begin by understanding how employment relationships work. As we already saw in another article where we talked about the different types of labor contracts, at the beginning of an employment relationship, the employer and the collaborator agree on the conditions of the same through the contract. There, among other things, the consequences for both parties in the event of non-compliance with these conditions are also determined.