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Home Economy

Are you thinking of terminating the contract? Know What to Do – Executive Summary

Ursula Curtis by Ursula Curtis
September 6, 2022
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Any worker can terminate the contract, however, there are rights and duties that vary depending on the type of contract and also the reason why you want to resign. The Employment Alert collected information on this topic.

Termination of the contract for a good reason

Termination for good cause occurs when the reason for dismissal is related to the behavior of the employer, in which case you may be entitled to compensation.

But for this, it is necessary that the just case be recognized and recognized by the employer or presented as established in court.

Thus, according to Article 394 of the Labor Code, the following behaviors of the employer constitute a just reason for termination of the contract by the worker:

failure to pay on the due date of the award in the form due (which lasts for 60 days);

violate worker’s statutory or traditional safeguards;

application of arbitrary punishment to the worker;

failure to ensure hygiene and safety conditions at work;

Wrongly damaging the serious interests of the property of the worker;

Infringement of the worker’s physical integrity, freedom, honor or dignity is punishable by law.

The amount of compensation to which a worker is entitled varies depending on the amount of the basic salary and the degree of severity of the employer’s behavior.

However, according to Article 396 of the Labor Code, a worker is entitled to receive between 15 and 45 days of basic wages, plus seniority payments, for each full year of seniority. In addition, this compensation must be less than three months of basic salary and seniority.

As for the advance notice, in cases where there is a just reason for the worker to terminate the contract, there is no obligation.

However, after knowing the just reason, the employee must inform the employer, within 30 days and in writing, that he wants to terminate the contract, stating the just reason for termination (Article 395 of the Labor Code).

Termination of the contract without just cause

The worker may also wish to terminate his employment contract, even if there is a good reason.

For example, because you found a new job, because you will be out of work for a while, or simply because you don’t want to continue working at your current company.

Therefore, in this case, it is necessary to adhere to the notice deadlines. These vary according to the type of contract and the length of service of the worker in the company.

In the case of an open-term employment contract, the written notice must comply with the following deadlines:

Up to 2 years of seniority: 30 days

More than two years of seniority: 60 days

These deadlines can be extended up to 6 months, depending on which group work system you cover.

Also if you are employed in management, administration or positions of responsibility, the period may increase.

In the case of fixed-term contracts – whether certain or uncertain – prior notice must be given in the following manner:

Contract for up to six months: 15 days

Contract duration equal to or greater than six months: 30 days

In the case of open contracts, the period to be fulfilled (15 or 30 days) relates to the contract period that has already expired (Article 400 of the Labor Code).

Are you entitled to unemployment benefit?

number! When a worker resigns, he is not entitled to pay unemployment compensation from Social Security.

Only involuntary unemployed workers are entitled to this allowance.

Ursula Curtis

“Writer. Analyst. Avid travel maven. Devoted twitter guru. Unapologetic pop culture expert. General zombie enthusiast.”

Ursula Curtis

Ursula Curtis

"Writer. Analyst. Avid travel maven. Devoted twitter guru. Unapologetic pop culture expert. General zombie enthusiast."

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