Final pay (finiquito) and severance (liquidación) are often used as synonyms, although they respond to different concepts. The finiquito gathers amounts already earned when a relationship ends; the so-called liquidación incorporates indemnities when the legal cause requires it, especially in the case of an unjustified dismissal. The amount is not determined by seniority alone: the integrated wage, the reason for separation, the contract, benefits and verifiable facts all have an influence. Distinguishing each item, documenting the cause and respecting the deadlines reduces payroll errors and avoids ambiguous agreements or invalid waivers of rights.
What the finiquito usually includes
When the relationship ends, pending wages, the proportional part of the year-end bonus, vacation earned and not taken, the vacation premium, commissions, earned bonuses, profit-sharing (PTU) already determined and unpaid, as well as the right to the year's PTU that must be paid when quantifiable, in addition to other contractual benefits, must be reviewed. The seniority premium is due in the cases of Article 162; in a voluntary separation, as a general rule it requires at least fifteen years of service, while other scenarios have different rules. These items may exist even if the person resigns. The calculation must show the period, wage base, days and deductions, not just a lump sum. The corresponding payroll documentation must also be delivered, and evidence of payment, receipt and the effective termination date must be kept.
When indemnities arise
In the case of an unjustified dismissal, the worker may claim reinstatement or the constitutional indemnity of three months, in addition to benefits owed. The twenty days per year are not automatic in every termination: they depend on the action brought and the situations provided for in Articles 49 and 50 of the Federal Labor Law. The seniority premium, back wages and interest under Article 48 may also be involved. For a rescission justified by the employer, it is decisive to communicate in writing the conduct and the dates that motivate it, directly or through the court. The label used by the company does not decide the case; what matters is the cause, the procedure and the evidence.
Agreement, receipt and time limit to claim
Article 33 prohibits the waiver of wages, indemnities and benefits. To be valid, every agreement or settlement must be in writing, contain a detailed account of the facts and rights covered, and be ratified before the conciliation center or court, which will approve it if it does not contain a waiver of rights. The law itself provides that, when entered into without the intervention of the authority, the nullity of clauses that imply a waiver may be claimed. A generic receipt does not correct an incomplete calculation or turn a separation into a voluntary one. Dismissal actions generally lapse in two months; the conciliation request suspends that period on legal terms. This information is general and does not replace the legal assessment of a specific termination.
Key points
- The finiquito covers earned rights and may apply even in a resignation.
- The three-month indemnity is linked to unjustified dismissal or equivalent legal situations.
- The twenty days per year are not an automatic part of every separation.
- An agreement cannot validate the waiver of labor rights already accrued.
What to review
- Document the cause and date of termination before calculating any payment.
- Break down bases, periods, days, benefits, indemnities and deductions.
- Ratify the agreement before the conciliation authority or competent court, as applicable.