How to Calculate Labor Termination
The definitive guide to verifying that your employer is paying every cent you are entitled to upon termination.
"Ignorance about your labor rights is the most expensive tax you pay."
Did you know that 7 out of 10 workers don't verify termination values and simply sign the papers? Worse: it is estimated that about 30% of terminations contain errors that hurt the employee. This guide exists so you are never one of those statistics.
Termination Components: What You Receive
Labor termination consists of several components that depend on the type of termination. See the complete comparison table for all three possible scenarios:
| Component | Fired Without Cause | Voluntary Resignation | Fired for Cause |
|---|---|---|---|
| Proportional Vacation + 1/3 | ✅ Yes | ✅ Yes | ❌ No |
| Proportional 13th Salary | ✅ Yes | ✅ Yes | ❌ No |
| FGTS Balance | ✅ Withdrawable | ❌ Locked | ❌ Locked |
| 40% FGTS Penalty | ✅ Yes | ❌ No | ❌ No |
| Indemnified Notice Period | ✅ Yes | ❌ No (may be deducted) | ❌ No |
| Unemployment Insurance | ✅ Can apply | ❌ No | ❌ No |
Proportional Vacation + Constitutional 1/3
Every 12 months of work, you earn the right to 30 days of vacation. If terminated before completing a period, you receive proportionally. On top of this amount, the constitutional 1/3 bonus is applied.
Proportional Notice Period
When fired without cause, the employer must compensate the notice period if they don't require the employee to work it. Each full year of service adds 3 days, up to a cap of 120 days. An employee with 10 years gets 60 days of notice pay.
FGTS and the 40% Penalty
The employer deposits 8% of your salary monthly into an FGTS account. When fired without cause, you withdraw the entire accumulated balance plus a 40% penalty on that balance. It is the largest financial component of termination and exists to protect workers who were involuntarily dismissed.