What is a Finiquito in Guatemala?
A finiquito is the settlement document and payment an employee receives when their employment relationship ends. It includes all pending labor benefits under the Guatemala Labor Code (Decree 1441).
What Does the Finiquito Include?
1. Severance Pay (unjustified termination only)
- 1 month's salary per year worked (proportional for fractions)
- Only applies when the employer dismisses without just cause (Art. 82)
- Does not apply for voluntary resignation
2. Proportional Aguinaldo (Christmas Bonus)
- Period: December 1 to November 30
- Equals 1 month's salary for a full year
- Calculated proportionally for days worked in the period
3. Proportional Bono 14 (14th Month Bonus)
- Period: July 1 to June 30
- Equals 1 month's salary for a full year
- Calculated proportionally for days worked in the period
4. Unused Vacation Days
- 15 working days of vacation per year worked
- Pending days are paid at the daily salary rate
5. Pending Salaries
- Any worked days unpaid up to the termination date
When Does Severance NOT Apply?
Severance pay is not owed when:
- The employee resigns voluntarily
- Termination is for just cause (Art. 77 of the Labor Code)
- The employee abandons the position
Legal Deadlines
The employer must pay the finiquito immediately upon termination. In practice, the Ministry of Labor recommends a maximum of 20 days.