Liquidation of social benefits, right that assists the employee

The end of any relationship is far from simple and a labor relationship is no exception. Regardless of the reasons that generated this situation (resignation, termination of contract or dismissal), the employer is obliged to grant the worker, within a period not exceeding 48 hours, the settlement of his social benefits.

According to this, neither is the type of contract (fixed or indefinite term) a variable that justifies the omission of this obligation. The only case in which an employer will be exonerated is if it is a case of breach of the internal rules of the company or theft.

As part of the benefits included in the liquidation, the employer must pay CTS (Compensation for Time of Service), vacations and bonuses in addition to overtime and holidays worked.

However, the large number that can represent the sum of all benefits will be reduced due to the law discounts that must be applied. Thus, before making the payment of the settlement effective, you must apply:

• Income tax (IR), which is applied to all income in the 5th category except for CTS truncates and it is equivalent to 7 UITs.
• Contributions to the pension system, the month of termination will be considered within the contribution made to the ONP or AFP.
• Discounts for loans received.

For more information or advice on the subject, you can contact us at omago@omcabogados.com and marketing@omcabogados.com.pe