Understanding Termination Payments

In Brazil, when you terminate an employee, you might need to make the following payments:

  • Regular earnings and deductions that are due for the termination period.

  • Compensation for unused paid vacation days and the vacation premium.

  • Compensation for the 13th salary.

    The system prorates worked days in the year to calculate the corresponding 13th salary pay.

  • Severance pay or other compensation in the form of special termination earnings.

  • Amount owed for all unpaid loans, independent of each other.

    This amount is automatically deducted from the last payslip.

Note: Termination payments are calculated in the payroll and not as a separate process.

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Brazil. Instructions for running the query are provided in the Understanding How to View Delivered Elements topic.