What is a Notice Period?

A notice period is an advance notification that an employee must give to an employer when resigning, or that an employer must give to an employee when terminating employment without just cause. This right is only granted in indefinite term contracts and applies as follows:

• No notice period is required before three months as it is considered the probation period.
• If the employment duration is more than 3 months but less than 6 months, a one-week notice period is required.
• If the employment duration is more than 6 months but less than 1 year, a fifteen-day notice period is required.
• After 1 year of employment, a one-month notice period is required.

The notice period must be given in time and can only be compensated with money in special cases.

Obligations and Rights During the Notice Period

During the notice period, the employment relationship continues as usual, maintaining all obligations and rights for both the employee and the employer. This means that if the employee commits an act that justifies dismissal, the employer can immediately terminate the employment without completing the notice period.

What is a Day of Leave During the Notice Period?

A day of leave during the notice period is a right granted to employees who are either resigning or being unjustly dismissed. It allows them to take one paid day off per week to seek new employment or better opportunities. The day of leave should be mutually agreed upon between the employee and the employer.

What Happens if the Employer Does Not Grant the Days of Leave?

The employee cannot claim payment for the leave days at the end of the notice period if they are not granted.

Can the Notice Period be Granted During Vacations?

The employer can notify the employee of the notice period even while they are on vacation, as the employment contract remains in effect, allowing the employee to seek new employment during this time. The purpose of the notice period is to give the employee the opportunity to find a new job, regardless of whether they are working or on vacation.

What Happens if the Notice Period is Not Given?

If the notice period is not given on time, the resigning employee or the employer who terminates the employment must compensate for that time in money. If the employee does not give the notice period, the employer cannot deduct it from the severance pay; they can only claim it legally within 30 days after the employment ends.

How is the Notice Period Payment Calculated?

The payment is calculated by averaging the regular and extraordinary wages earned by the employee over the last six months (sum of the last six months' wages divided by six to get the monthly amount). For employees with monthly payments, the monthly amount is divided by 30 days, and for weekly payments (except in commerce), the monthly amount is divided by 26 days to get the daily proportion.

The calculation does not include the time the employee was on sick leave. In such cases, the periods before and after the sick leave are added to complete six effective months of work. Maternity leave during the last six months is included in the calculation as it is considered part of the salary.

What is Severance Pay?

Severance pay is a right granted to employees to be compensated in the event of termination with employer liability. It is equivalent to unemployment insurance in other countries, intended to provide the dismissed employee with a minimum amount to sustain themselves while finding another job.

How Much Should Severance Pay Be?

The employer must pay severance according to the following rules:

• For continuous work of no less than three months and no more than six months, an amount equal to seven days of wages.
• For continuous work of more than six months but less than one year, an amount equal to fourteen days of wages.
• For continuous work of more than one year, the number of days' wages specified in the following table:

Severance pay cannot cover more than the last eight years of employment. It must be paid even if the employee immediately starts working for another employer. No deductions for social charges apply to severance pay.

How is Severance Pay Calculated?

The calculation considers the average of all ordinary and extraordinary wages earned by the employee over the last six months (sum of the last six months' wages divided by six to get the monthly amount). For employees with monthly payments, the monthly amount is divided by 30 days, and for weekly payments (except in commerce), the monthly amount is divided by 26 days to get the daily proportion.

The calculation excludes the time the employee was on sick leave. In such cases, the wages earned during the periods before and after the sick leave are added to complete six effective months of work. Maternity leave during the last six months is included in the calculation.

How Long Does an Employee Have to Claim Severance Pay?

The employee's right to claim severance pay starts the day after the employment ends and lasts up to one year. The employer is obligated to settle the severance pay on the same day the employment ends.

Relevant Legislation

• Political Constitution, Article 63.
• Labor Code and its amendments, Articles 28, 29, and 30.
• Law 7983, Worker Protection Act, Article 88.

What is the Christmas Bonus?

The Christmas bonus is an "additional salary" that every employer must pay to their employees, regardless of the nature of their work, within the first twenty days of December each year.

Who is Entitled to the Christmas Bonus?

Every employee is entitled to the Christmas bonus, regardless of their payment method, provided they have worked for at least one continuous month for the same employer. This includes those who work under fixed-term contracts or for a specific project (temporary or occasional), as well as those who work by the day or hour each week.

How Much Should the Christmas Bonus Be?

The Christmas bonus is calculated based on all regular and extraordinary wages earned by the employee during the twelve months from December 1 of the previous year to November 30 of the current year. The total of these wages is summed up and divided by twelve.