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The termination settlement (finiquito) calculates what is owed to an employee when the employment relationship ends. In El Salvador it applies the rules of the Labor Code (Código de Trabajo); in other countries, amounts are calculated with general rules and adjusted manually.

Create a termination

1

Go to Human Resources → Terminations → New Termination

2

Select the employee, termination date and reason

3

Save

It is created as a draft with the amounts calculated.
4

Review the breakdown and adjust if necessary

The final amounts (severance, vacation, Christmas bonus and other adjustments) are editable while the termination is in draft.
5

Finish

The termination is closed and the employee is marked as inactive.

Calculation in El Salvador

Severance (Art. 58)

Only for unjustified dismissal: 30 days of salary per year of service (fractions pro rata), with a minimum of 15 days. The daily salary is capped according to the severance policy.

Vacation

Each year of service entitles the employee to 15 days of salary plus a 30% surcharge (Art. 177).

Pro rata Christmas bonus (aguinaldo)

Proportion of the days worked since the last December 12 (or since the hire date, if later), according to the days of the seniority bracket in the Christmas bonus policy.

Breakdown

When you review the termination, it shows how each amount was reached: seniority, full year not taken, current period, pro rata (or the reason it does not apply), and the Christmas bonus period and days.
If the employee has outstanding loans, the termination review shows the balance so you can decide whether to deduct it under Other adjustments. Only one termination is allowed per employee: if they already have one in draft or finished, another cannot be created.
If the employee has no hire date, vacation and Christmas bonus cannot be calculated. Fill it in on their record before creating the termination.

Severance policies

The calculation parameters are configured in Human Resources → Severance Policies: