What is labor liquidation in Guatemala?
Labor liquidation (liquidación laboral) is the total payment of benefits a worker receives when their employment ends. It is calculated based on Guatemala's Labor Code (Decree 1441).
Components of liquidation
1. Severance (Indemnización)
Severance = Monthly Salary × (Days Worked ÷ 365)
Equals 1 month salary per year worked (proportional)
Only applies for unjustified termination or constructive dismissal.
2. Proportional Aguinaldo
Calculated from December 1 to November 30 period. Always applies.
3. Proportional Bono 14
Calculated from July 1 to June 30 period. Always applies.
4. Unused Vacation
15 working days per year worked at daily salary rate.
5. Prior Notice (Preaviso)
Compensation for lack of advance notice: less than 6 months = 1 week; 6 months-1 year = 2 weeks; over 1 year = 1 month.
Severance only applies for unjustified termination or constructive dismissal. It does NOT apply for voluntary resignation or justified termination.
It can include: severance (if applicable), proportional aguinaldo, proportional bono 14, unused vacation, prior notice (if applicable), and pending salaries.
Severance equals one month's salary per year worked, proportional for fractions. For example, Q5,000 salary and 3.5 years = approximately Q17,500.
Constructive dismissal occurs when the employer severely breaches the contract, such as reducing salary without consent or unilaterally changing working conditions (Art. 79).
Payment should be immediate. In practice, the Ministry of Labor accepts a maximum of 20 days. If unpaid, file a complaint with the Labor Inspection Office.
If you resign voluntarily, you're entitled to proportional aguinaldo, bono 14, and unused vacation. You do NOT get severance or prior notice compensation.