Employment Termination Calculator

Understanding Employment Termination Benefits

Employment termination can be complex, with various benefits and entitlements depending on the circumstances. Our termination calculator helps you understand what you may be entitled to receive when your employment ends.

Types of Employment Termination

Dismissal Without Cause

When an employer terminates employment without cause, employees are typically entitled to the most comprehensive benefits package, including severance pay, prior notice, and additional compensation.

Dismissal With Cause

Termination for cause (serious misconduct, breach of contract) typically results in reduced benefits, with employees receiving only basic entitlements like proportional vacation and 13th salary.

Employee Resignation

When employees resign voluntarily, they typically receive proportional benefits for time worked but may not be entitled to severance pay or prior notice compensation.

Common Termination Benefits

Proportional Vacation Pay

Employees earn vacation days throughout the year and are entitled to payment for unused vacation time when employment ends, calculated proportionally based on time worked.

Vacation Bonus

Many jurisdictions require employers to pay an additional one-third of vacation pay as a constitutional bonus, ensuring employees can afford to take actual vacation time.

13th Salary (Year-End Bonus)

The 13th salary is an additional month's pay typically distributed at year-end. When employment ends mid-year, employees receive a proportional amount based on months worked.

Prior Notice

Employers must provide advance notice of termination or pay in lieu of notice. This gives employees time to find new employment and provides financial security during the transition.

Severance Pay

Additional compensation provided to employees upon termination, often calculated based on length of service and salary level. Severance helps bridge the gap between jobs.

Tax Implications

Termination benefits are generally subject to income tax and social security contributions. However, some jurisdictions provide tax advantages for certain types of severance payments.

Important Considerations

• Review your contract: Employment contracts may specify additional benefits or different calculation methods
• Understand local laws: Labor laws vary by jurisdiction and may provide additional protections
• Document everything: Keep records of your employment history, salary, and any agreements
• Seek legal advice: For complex situations, consult with an employment lawyer
• Negotiate when possible: Some termination terms may be negotiable

Next Steps After Termination

After calculating your termination benefits, consider these important steps: file for unemployment benefits if eligible, review and potentially negotiate your severance package, understand your healthcare continuation options, and begin planning your job search strategy.

Remember that this calculator provides estimates based on common scenarios. Actual entitlements may vary based on your specific employment contract, local labor laws, and individual circumstances.