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.