basic guide for workers and companies

What is severance pay for voluntary resignation?

The severance pay is a right that all Spanish workers have when they end their employment relationship with a  company , either voluntarily or through dismissal. It consists of a settlement given to the employee that includes all the money that has not been paid for concepts such as daily wage, unused vacations and extra payments, among others.

At the time of termination of the employment relationship, the company is obliged to calculate the severance pay and present the result in a formal document that is given to the employee.

Voluntary resignation and other forms of termination of employment

Voluntary resignation occurs when a person tells the company that he or she no longer wants to continue working with them, whether for personal or professional reasons.

However, there may also be cases where the employee is removed from his position for economic, organizational or productive reasons, as well as for improper conduct on the part of the worker or for lack of ability to fulfill his obligations. Whatever the case, when a voluntary resignation occurs, the worker has the right to receive his severance pay, as well as if any  poland email list  type of dismissal occurs .

Importance of the settlement for both parties

The voluntary resignation settlement is an essential document for employees and companies, since it is evidence that the employment relationship ended satisfactorily.

For the worker, this is a guarantee of payment and an essential document for  100+ amazing blogging statistics and facts (ultimate list 2023) requesting unemployment benefits. However, it also serves as proof in the event of a legal dispute with the company.

For the company, delivering the settlement is an obligation and is used as whatsapp number evidence of compliance with its responsibilities. The signing of the document by both parties helps prevent future problems between the two parties.

Concepts included in the severance pay for voluntary resignation

When calculating the severance pay for voluntary resignation, the company must include certain concepts that cannot be missed, such as:

1. Pending salary:  This takes into account the daily salary that has not been paid to the employee. Let’s imagine that a person requests voluntary resignation and finishes work on October 16. As the corresponding salary, the company has to pay the severance pay corresponding to the 16 days worked after receiving the  previous month’s pay .
2. Unused vacation:  All employees are entitled to receive 30 days’ pay for each year. Following the example above, the person did not work the entire year, but performed his duties for only 283 days (from January 1 to October 20). By applying a rule of three, it is possible to find out the days of vacation to which he is entitled.
3. Extra payments:  It is common for companies to offer bonuses or extra payments to their employees from time to time. If these payments are not prorated, then they must be included in the calculation of the severance pay for voluntary resignation. To do this, the days elapsed since the last payment was made and the amount that must be paid for each of them are considered.
4. Other concepts:  Lastly, all payments for overtime work are included, as well as commissions, other bonuses, or any concept that is included in the collective agreement. Precisely for this reason, it is extremely important to know the agreements existing between the workers and their company.

Am I entitled to compensation if I resign voluntarily?

When requesting voluntary resignation, you are not entitled to receive compensation. Remember that this is financial compensation given by the company in particular cases such as objective dismissals for reasons beyond the employee’s control or for unfair or void dismissals.

Since the employment relationship ends by one’s own decision, compensation is not included in the severance pay for voluntary resignation, although there are special cases.

Compensation may be available if internal problems such as harassment or discrimination arise, although this usually involves a personal agreement between the employee and the company. There may also be special clauses in the collective agreement.

Obligations of the employee in case of voluntary resignation

When a severance payment is requested for voluntary resignation, the employee has certain obligations to fulfill with the company as established by the  Workers’ Statute .

First of all, you must submit a  notice letter or voluntary resignation letter. It must clearly state that you want to end the employment relationship, as well as the date on which you expect to take effect.

This last point is extremely important, since a period of notice must be considered so that the company can take the necessary measures. Generally, this notice is usually at least 15 days, although everything will depend on what is specified in the collective agreement.

Other obligations of the worker are:

• You must fulfill your assignments throughout the notice period;
• You must deliver any information or materials belonging to the company;
• Confidentiality of business activities must be respected;
• You must assist in the training of a replacement during your probationary period.

Consequences of not fulfilling obligations

An employee who resigns voluntarily is entitled to receive a severance payment and a company certificate specifying the time worked. The company must also hand over any documents belonging to the employee.

However, it is very important to note that if the employee does not comply with the obligations described in the previous section, then he or she loses the right to severance pay. There may even be legal consequences if the lack of cooperation causes damages to the company.