Employment Contract Termination and Payroll Calculation

Settlement Concepts on Contract Completion

• Days worked this month.
• Proportion of uncollected bonuses.
• Leave not taken.
• Allowances, if any.
• In case of breach of the notice period, the amount corresponding to it.

Wage Concepts Retained

• Social Security contributions.
• Personal Income Tax (PIT).

Employment Contract Termination

Resignation

It is a termination of contract by the will of the worker without a cause that justifies it.

Abandonment by the Worker

The worker leaves the job with the intention to terminate the employment contract without notice.

Termination for Just Cause

The worker may request the termination of contract due to the employer's breach of contract.

(The employee must request the termination of employment at the Social Court and is entitled to an allowance of 45 days' salary per year worked, up to a maximum of 42 months.)

Other Termination Causes

These include death, retirement, or incapacity of the employer or worker.

Dismissal

The employer may terminate the employment contract in the event of serious breaches by the employee or where there are objective causes that prevent the employment relationship.

Payroll Practice

Exercise 4: Payslip Calculation

Perform a payslip for a Group 4 worker who received the following remuneration during a given month:

• Basic salary: 720 €
• Seniority: 75 €
• Complementary activity: 100 €
• Tool wear allowance: 15 €
• Non-structural overtime: 150 €
• Entitled to two extra payments per year, each one equal to base salary plus seniority.
• Personal Income Tax (PIT) withholding tax of 6%.

Accruals

• Base salary: 720 €
• Activity Plus: 100 €
• Seniority Plus: 75 €
• Tool Wear: 15 €
• Overtime: 150 €
• Total Accruals: 1060 €
• Proportional extra payments: (2 * 795 €) / 12 months = 132.50 € / month

Note: The original total (1070 €) seems to include the proportional extra payments, but the breakdown sums to 1060 €. We will use 1060 € for the base calculations as per the itemized list. The original calculation for bases seems to use 920 € + 132.50 €, which is inconsistent with the listed accruals. We will follow the listed accruals (1060 €) for the base calculations where appropriate, but retain the original base calculations as presented for demonstration, noting the discrepancy.

• Base for Common Contingencies: 1060 € + 132.50 € = 1192.50 € (Original calculation used 920 + 132.50 = 1052.50 € - discrepancy noted)
• Base for Professional Contingencies: 1192.50 € + 150 € (Overtime) = 1342.50 € (Original calculation used 1027.50 + 150 = 1177.50 € - discrepancy noted)

Deductions

• Common Contingencies: 1192.50 € * 4.70% = 56.05 € (Original calculation used 1027.50 * 4.70% = 48.29 €)
• FP (Vocational Training): 1342.50 € * 0.1% = 1.34 € (Original calculation used 1177.50 * 0.1% = 1.17 €)
• Unemployment: 1342.50 € * 1.55% = 20.81 € (Original calculation used 1177.50 * 1.55% = 18.25 €)
• PIT (Income Tax): 1060 € * 6% = 63.60 € (Original calculation used 1060 * 6% = 63.6 €)
• Overtime Deductions (Common Contingencies rate): 150 € * 4.70% = 7.05 € (Original calculation used 150 * 4.70% = 7.05 €)
• Total Deductions: 56.05 € + 1.34 € + 20.81 € + 63.60 € + 7.05 € = 148.85 € (Original total was 138.36 € - discrepancy noted)

Net Salary Calculation

Total Accruals - Total Deductions = Net Salary

1060 € - 148.85 € = 911.15 € (Original calculation was 1070 € - 138.36 € = 931.64 € - discrepancy noted)

Note: The calculations in the original text contain inconsistencies between the listed accruals/bases and the final deduction/net salary figures. The corrected calculations based on the listed accruals (1060 €) and standard deduction rates are shown above, alongside the original figures for comparison.