What the finiquito is: what it includes and when it is paid

The finiquito in one sentence

The finiquito is the settlement of everything the company already owes you when an employment contract ends. It does not reward or punish the cause of termination: it settles what you have earned. That is why it is paid all the same whether you resign, a temporary contract ends, or you are dismissed. Article 49.2 of the Workers' Statute obliges the employer to present a settlement proposal with the termination.

The most widespread confusion is mixing it up with severance for dismissal. They are different things: severance compensates losing the job and depends on the cause (20 or 33 days per year worked, articles 53 and 56); the finiquito always exists. They can appear in the same document and be paid together, but they are calculated under different rules.

The three components of every finiquito

1. Pending salary. The days worked in the final month that have not yet been paid. On a monthly salary, each day is worth the monthly amount divided by 30.

2. Untaken vacation. Article 38 guarantees at least 30 natural days of vacation a year, about 2.5 per month worked, although the exact count is made in holiday days per month worked rather than in whole months. Days earned and not taken by the end date are paid as salary days. It also works in reverse: if you took more than you had earned, the company may deduct the excess. Those same days also push back the start of unemployment benefit.

3. Accrued extra payments. Article 31 provides for two extraordinary payments a year. If you do not receive them prorated in the monthly payslip, each payment has an accrued share since it was last paid, and that share goes into the finiquito.

You can put numbers to your own case with the finiquito calculator, which itemises exactly these three components.

Signing the finiquito: what to know

Receiving the finiquito is not the same as accepting it. A signature with full releasing effect can make later claims harder, so the prudent practice when something looks off is to sign adding "no conforme" (not agreed) next to your signature: it records that you received the document without endorsing the figures.

Three further protections worth knowing:

• You may ask for a workers' representative to be present at the signing (article 49.2).
• To claim owed amounts you have, in general, the one-year deadline of article 59.
• Check every line against your payslips: they are the document everything is verified against.

When the finiquito carries something extra

In some terminations the same document includes items beyond these three: the 12-days-per-year indemnity when most temporary contracts end (article 49.1.c), severance for objective or unfair dismissal, or payment in lieu of unserved notice. Appearing together does not make them part of the finiquito: each has its own rule and deserves its own check.

This information is educational and is not employment or tax advice. For a specific case, consult a labour law professional.