> ## Documentation Index
> Fetch the complete documentation index at: https://docs.filexpress.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Terminations

> Employee settlement at the end of the employment relationship: severance, vacation and Christmas bonus

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**

| Reason |
| - |
| Unjustified Dismissal |
| Justified Dismissal |
| Voluntary Resignation |
| Mutual Agreement |
| End of Contract |
| Other |

**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](#severance-policies).

### Vacation

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

| Part | When it is paid |
| - | - |
| **Full year not taken** (Art. 187) | **Always**, regardless of the termination reason (even justified dismissal or resignation). Approved vacation since the last anniversary is deducted. |
| **Pro rata for the current year** (Art. 188) | Days worked since the last anniversary. **Not paid** in a justified dismissal or if the employee has less than 6 months at the company. |

### 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](https://docs.filexpress.app/en/docs/rrhh/aguinaldo.md).

### 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.

> [!NOTE]
>
> If the employee has outstanding [loans](https://docs.filexpress.app/en/docs/rrhh/prestamos.md), 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.

> [!WARNING]
>
> 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**:

| Field | Description |
| - | - |
| **Country Code** | Country it applies to (e.g. SV). |
| **Daily Minimum Wage** | Current legal daily minimum wage. |
| **Cap Multiplier** | The daily salary for severance is capped at *minimum wage × multiplier* (4 in El Salvador). |
| **Days per Year of Service** | 30 in El Salvador. |
| **Guaranteed Minimum Days** | 15 in El Salvador. |


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