The labor crisis in Spain is not over. Yes, employment has improved in the last two years, very little, but it has improved, even though unemployment is still very high. Something that has also contributed is that the employment caused is very volatile and there is a lot of turnover. That has made many Spaniards experts in many things, and in the need to be. An example is knowing how the settlement is calculated.
Even though we should not think that companies are deceiving us, we must take care of ourselves at all times, because there are "mistakes" that favor companies more than us, its workers, and we do not realize it, we do not know if the calculations have been correct, and sometimes, we begin to give the signature, without being convinced of anything.
Know how to calculate the settlement It will allow you to know all this and avoid mistakes that could harm you and, fundamentally, get ahead of the company.
We do not say that all companies are wicked and wicked on earth, but it is always good to know everything that affects our pocket.
If at the end of the post you have any questions or have discovered errors in the calculation of your settlement, We advise you, first of all, to go to the company to solve possible errors, and if it is not feasible, go to a lawyer specialized in labor matters, your union, or the cooperative where you are registered.
What is the settlement
Settlement comes from a Latin word meaning 'to finish'.
It is a document that is made when the employment relationship between employee and company ends, and in which it is accepted that the obligations and commitments of both have been covered in a timely manner.
It is a legal document, and it contains all the linking details that have been covered, from general data, paid vacations and endless details that we will tell you later.
Let's say, in other words, that the liquidation is a legal document that balances the rights of the person towards the company, with all that this entails and is pending or not.
The liquidation may declare that all the obligations of the company for the employee they have been covered, and that the balance is zero, but also, what has been pending for some vacation days, or, on the contrary, that there are two days left without any justification.
Is the calculation and signing of the settlement mandatory?
It is not necessary since it is only a balance of the worker's situation where they express, both parties, that there are no debts, or that there are, detailing what they are and how they will be extinguished.
Even when by Jurisprudence the document is prepared when a labor relationship ends.
The employee's signature must be presented, but with certain conditions. If the employee does not agree, they can sign with the legend "not enough". In other words, it accepts the document, but not the quantities or concepts it contains.
You can also refuse, but that means not receiving the amount of money it contains, and in some cases, losing time to process the unemployment benefit, if you have the right to it.
What does the signing of the agreement entail?
We must not be confused.
Signing the agreement only means that you have received the amount of money stipulated there.. It does not necessarily entail, as we have told you before, accepting the quantities and their calculation.
Companies usually put a text in which the signature implies that the worker accepts, and that no claims or clarifications can be made after the date of signature of the document. It is a clear and valid legal defense that many use.
What you should do is We insist, express your disagreement, signing and placing the legend 'I received not compliant'.
If you don't sign, you must go to trial and other paperwork that takes time. The procedure and demand would be before the Mediation, Arbitration and Conciliation Service (SMAC).
What should the agreement include?
Before seeing how the settlement is calculated, you should be able to understand the data that the document contains, and what it should contain, in case there is any that does not appear.
What the agreement should include is the following:
- The general and complete data of the company and the worker involved in the employment relationship.
- The salary pending payment until the time of issuance of the settlement.
- The proportional part of the extraordinary wages to which the worker is entitled.
- The Proportionate Share of Benefit Payment
- Holidays not enjoyed by the worker. They are 2.5 per month.
- Unpaid benefits, which appear in the contract, such as awards for productivity, punctuality, overtime, etc.
- All debts, for any reason
The compensation amount does not have to appear in the agreement, is often added to the termination letter, or in detail in a complete document for this section.
Nor does the document need to contain the word 'settlement' in the titleBecause of the breakdown of concepts and the concept of debt balance, they take for granted what it is.
It is also key to request a draft or advance of the settlement so that you can review the amounts and explain everything before the final settlement.
How the settlement is calculated
It is not very difficult to calculate the settlement that corresponds to you, with some operations and rules of three you will do it in about 10 minutes maximum.
Go for it.
You will need these data, with their exact amounts:
- Last period salary
- Holidays to which you are entitled, but have not enjoyed
- Extra payments
Take the example of an employee who was laid off on September 22. His salary was 1,000 euros a month (he is a lucky worker) with a pay of 100 euros per trip and two extra payments of 1,000 euros.
Let's calculate the salary
We will have to calculate the daily wage.
- In other words, we add the € 1,000 plus the € 100 for travel and divide them by 30, the days that make up the month, for tax purposes.
- This is: € 1,100 / 30 days: € 36.66 per day.
- If you were laid off on September 22 and your entire payroll was paid, then the debt is only for 22 days.
- We multiply the € 36.66 by 22 days.
- The debt is € 806.52.
Now let's calculate the vacation days.
Let's first calculate the days.
We have to have 2.5 days a month. Until August, the worker in the example has 20 days. Since he was fired in September, he has 1.6 days until September 22.
We multiply the 21.6 days by the daily salary, of € 36.66.
On vacation, as he could not enjoy any day, it is € 791.85.
Now we must calculate the extra payment
Additional payments are divided into two periods, which close on January 1 and July 1.
As this worker worked until September 22, he is entitled to the extra summer pay, which is € 1,000.
In the second semester he has worked 82 days.
We multiply the 82 days. As it is per semester, it is € 1,000 between 180 days (half the year), and multiplied by the 82 days it takes. They are € 453.03.
Now we calculate the settlement.
We add: Salary + Vacation + Extra payment.
In this circumstance: € 806.52 + € 791.85 + € 1,453.03.
The settlement must be € 3,051.4.
If there are more quantities contained in the contract, they must be added to that total quantity.
Rather, let's imagine you enjoyed your 30 calendar days of vacation, and they only corresponded to 21.6 as we have seen. Afterwards, the amount would be subtracted and not added to the total, completely changing the settlement amount by almost € 600 less.
The same goes for the extra payment: If the worker had received the two additional payments on a prorated monthly basis, there would be no additional payment calculation, only vacations and salary, also changing the amount to very different amounts.
The same if the extra pay instead of being paid semi-annually, is paid annually, the amounts change.
Review all those details and base them on the contract.
We did not mention you in the I calculate your compensation, since that regularly goes in another document or in your dismissal letter and is not part of the settlement, in general, and is calculated individually.
At the same time, if there are debts of the worker with the company, for example, payroll advances, purchases of its products, for example, an appliance, are subtracted from the accumulated total.
Sometimes the result is negative for the worker, and other times, it results in zeros, everything is doable in calculations like this.
conclusion
Settlement is a balance of the company's obligations to the worker and vice versa., until the moment the employment relationship ends. They include pending payments accumulated by contract, which can be in favor of the worker or the company.
Go to a specialist lawyer, and sign according to what you find, without being coerced by the company, and always with the legend 'not compliant' if there may be something strange in the settlement.
Calculate your settlement yourselfAs you can see, it is very easy, and fundamentally fast, on the internet there are many programs and forms that calculate it automatically, if you do not trust your calculations.
