What is the settlement?

El settlement It is a document that is given to the worker when the employment relationship with the company ends. This document contemplates the labor and economic rights and obligations of the worker and the employer.

What is included in the settlement?

The settlement document contains the amount that the worker has earned up to the end date of his employment contract, that is, the amount of outstanding wages, the proportion of extraordinary payments that have not been received and vacations not taken.

Discounts are also included. to Social Security and personal income tax, as well as other concepts that the company may be obliged to pay, such as termination of temporary contracts or severance pay.

What is settlement?

Furthermore, the settlement refers to the final payment that a worker must receive at the time their employment contract with the company ends.

What is included in the settlement?

The settlement includes all concepts that the worker may have generated during his employment relationship with the company, from the base salary to bonuses, commissions and overtime worked.

In addition, the settlement must include all payments for vacations not taken, the proportional part of extra pay, the proration of the last salary payment, the days of salary corresponding to the date of termination of the employment relationship, etc.

What is the difference between settlement and liquidation?

The main difference is that the settlement It is a document that is delivered at the time the employment relationship ends and contains the amounts that must be paid or that have been collected, while the settlement It is the final payment that the worker must receive, the total sum of all the amounts included in the settlement.

Conclusion

In summary, the settlement and liquidation are two different but complementary documents that are delivered at the end of a worker's employment relationship with the company. While the first is a document that reflects the labor and economic rights and obligations of both parties, the second is the final payment that the worker must receive.

• The settlement is the document that is delivered at the time of the end of the employment relationship
• The settlement is the final payment that the worker must receive
• Both documents include the amounts corresponding to the labor and economic rights of the worker and the employer.
• The settlement is the total sum of the amounts included in the settlement

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