Severance pay: know your rights

Dismissal is a reality that affects many workers. But how does it happen, under what circumstances, or how can a dismissal situation be resolved?

Learn more about these and other issues in this article!

What is dismissal?

Dismissal is the termination of a paid activity, where the company no longer wishes to maintain the relationship with the employee, for various reasons.

What are the different types of dismissal?

Regarding dismissal, there are several types, which are divided into:

  • Collective dismissal (employer-initiated)
  • Dismissal due to a reason attributable to the employee (initiated by the employer);
  • Dismissal due to job elimination (initiated by the employer);
  • Due to a complaint from the employee (initiated by the worker);
  • Dismissal due to unsuitability (initiated by the employer).

What is severance pay?

A severance pay It is the severance pay that an employee receives after being laid off. The purpose of this compensation is to provide some financial comfort to the person who is left without any salary while they look for a new professional opportunity.

Who is entitled to severance pay?

Except in cases of dismissal for just cause, workers with permanent contracts are entitled to a indemnity. Workers with fixed-term contracts may have to provide specific compensation if the contract is terminated through no fault of the worker.

Difference between dismissal with just cause and dismissal without just cause.

Regarding dismissal, it can be with or without just cause. In cases of dismissal for just cause, there is no right to compensation, and this is the most serious way to dismiss someone. This happens because the worker is dismissed due to misconduct in the workplace.

In relation to dismissal without just cause, this differs from the previous one, since the worker is entitled to compensation, between 15 and 45 days, and it is a situation where the worker is dismissed without having any problem.

How is severance pay calculated?

The calculation used to determine severance pay is simple: the dismissed worker receives compensation for each full year of service, according to the... degree of unlawfulness and the amount of compensation. This amount is paid between 15 and 45 days of base pay.

Collective dismissal: rights and rules

A worker who is dismissed as part of a collective dismissal has both rights and obligations.

Among your rights is the right to receive compensation equivalent to 12 days of base pay for each full year of service.

Regarding duties, employees should collaborate as much as possible with their employer.

Compensation for job termination

Dismissal due to job elimination occurs when the employee wants to eliminate their job position, and the employer is ordered to pay for all damages caused, whether material or non-material.

In this compensation, the worker is entitled to payment equivalent to 12 days of base salary for each full year of service.

What is the current legislation regarding severance pay in Portugal?

O Article 396 of the Labor Code This is one of the documents that details severance pay, particularly in cases of dismissal for just cause. This document outlines issues such as the amount of compensation to be paid and the associated rules.

Can I dispute the amount of my compensation?

The value of a indemnity This should not be contested, since the calculations are stipulated for all dismissal cases in general, regardless of the specific dismissal situation.

However, if there is a suspicious case where the compensation awarded does not resemble what a worker deserves, it should be challenged.

How long does it take to receive compensation?

The time a company must take to pay depends on the type of contract in question. In the case of contracts with a duration of six months or more, the deadline is 30 days from the assumption of responsibility.

In situations where the contract is for less than six months, the deadline is 15 days.

Can I negotiate the amount of my compensation?

The amount of severance pay is negotiable; however, the terms and type of dismissal are also negotiable.

The employer and the employee have the right to reach a consensus on the amount to be paid and the type of compensation: which may be material, monetary, or there may even be no compensation at all.

Do I need a lawyer to handle a severance payment claim?

Having a lawyer present to handle severance pay is very important, since there are bureaucratic procedures that can be more easily dealt with with the help of a lawyer.

Can my lawyer help me negotiate a higher compensation?

Yes. A legal professional is the most suitable person to assist in negotiating severance pay, as they are knowledgeable and safeguard their clients' rights.

For more information, contact CSG Lawyers. At CSG Advogados, we have professionals specialized in this area, ready to help you with everything you need.

Is it possible to reach an agreement with the company without going to court?

Yes. Going to court happens in situations where there is no agreement between the worker and the employer. In situations where both parties are open to dialogue, there is no need to resort to the courts.

Conclusion

Dismissal can take many forms, which indicates whether the decision comes from the employee or the company. All of this influences whether or not compensation is due.

Compensation can be negotiated between the parties involved, and the presence of a lawyer is essential in mediating the situation, as it is important in any and all dismissal processes.

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CSG Advogados Team
CSG Advogados Team

The content published by CSG Advogados is rigorously prepared and reviewed by qualified lawyers with experience in their respective areas of practice, to ensure clear, up-to-date, and legally sound information.

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