How to calculate compensation and benefits in Guatemala?

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How to calculate compensation and benefits in Guatemala?

In Guatemalathe right to compensation for dismissal is regulated by the Labor Code.

This economic benefit aims to compensate for the worker in the unjustified completion of a employment relationship and facilitate their transition towards new employment opportunities.

When is a job compensation?

In accordance with article 78 of the Labor Codea worker has the right to receive Labor compensation If it is fired Without a justified cause. This situation occurs when the employer decides to end the employment contract without valid legal support.

He Ministry of Labor and Social Welfare (Mentrab) explains that an employee can claim Compensation for unjustified dismissal In the following cases:

1. dismissal without just cause

If the employer does not demonstrate a legal cause for the termination of the contract, he must pay the worker:

  • An ordinary salary for each year of continuous services.
  • Proportional work benefitslike him Aguinaldo, Bonus 14, incentive bonus and Non -enjoyed vacations.

2. Justified dismissal

Even in cases of justified dismissal, such as restructuring or termination of a certain time contract, the employer is obliged to deliver a Proof of work and pay the corresponding proportional benefits.

The article may also be interested: How to calculate the compensation for dismissal.

3. Indirect dismissal

According to article 79 of the Labor Code, the worker can be considered dismissed if the employer incurs serious offenses, such as:

  • Do not pay the full salary in the place and date agreed.
  • Incur acts of dishonesty, immorality or lack of probity.
  • At risk Safety or health of the worker.
  • Change the worker to a lower category or salary position without justification.

In these situations, the worker may file a complaint and demand the corresponding compensation before the Labor Courts.

How is compensation calculated in Guatemala?

The calculation of the compensation for dismissal It is regulated in article 82 of the Labor Code. The formula consists of granting an average salary for each year worked.

The Guatemalan Auditor DORYS ARÉVALO and the Rubén Gómez accounting specialist they agree that the amount must be calculated based on the average of the last six accrued wages. If the worker worked less than a year, the calculation is carried out proportionally.

“Salaries are added, a monthly average is estimated and divided by twelve months to obtain proportional compensation,” Gomez explained.

In addition, if the employer grants additional benefits As transportation, food or similar, these should be considered as part of the compensation calculation.

What is universal compensation?

Some companies in Guatemala apply a Universal compensation policywhich consists of paying compensation even when the collaborator presents his resignation. However, this practice is not mandatory according to law.

Rubén Gómez clarifies that, in case of resignation, which must be paid necessarily are the Law benefits: proportional bonus, bonus 14, pending vacations and any other acquired right.

What is the deadline to claim compensation?

The worker has 30 business days from the end date of the employment relationship to claim the compensation for dismissal before the corresponding authorities. This period is established in the Guatemalan labor legal framework.

Other situations that could generate the right to compensation

In addition to unjustified dismissal, there are other circumstances that, depending on the case, could lead to a Labor compensation.

These situations must be evaluated before the Mentrab or in a labor court:

  • Violations of the Workers’ rights.
  • Labor contracts with irregularities.
  • Work disabilitywhether temporary or permanent.
  • Employee deathin which case the company must compensate the collaborator’s family.

Recommendations for workers

For those who wish to know more about their rights, it is recommended:

  • Consult the Chapter VIII of the Labor Codewhich addresses the issue of compensation.
  • Request advice with a Labor lawyer, Public Accountant, auditor or approach to Ministry of Laborwhere they can provide free guidance on these processes.

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