Question 1

What is labor liquidation in Guatemala?

Accepted Answer

Labor liquidation is the total payment a worker receives when their employment ends. It includes severance (if applicable), proportional Christmas bonus, proportional 14th month bonus, unused vacation, prior notice, and pending salaries.

Question 2

How much severance do I get in Guatemala?

Accepted Answer

Severance equals one month's salary per year worked, proportional for fractions. It only applies for unjustified termination or constructive dismissal (Art. 78-82).

Question 3

What is constructive dismissal in Guatemala?

Accepted Answer

Constructive dismissal occurs when the employer breaches the employment contract, such as reducing salary without consent or unilaterally changing working conditions.

Question 4

How is proportional aguinaldo calculated?

Accepted Answer

Proportional aguinaldo is calculated by dividing monthly salary by 365 and multiplying by days worked in the current period (Dec 1 - Nov 30).

Question 5

What is prior notice compensation and how much is it?

Accepted Answer

Prior notice compensation covers lack of advance termination notice. Per Art. 83: less than 6 months = 1 week; 6 months to 1 year = 2 weeks; over 1 year = 1 month.

Question 6

How long does the employer have to pay liquidation?

Accepted Answer

The employer must pay liquidation immediately upon termination. In practice, the Ministry of Labor establishes a maximum of 20 days.

Question 7

What's the difference between liquidación and finiquito?

Accepted Answer

Finiquito is the legal document certifying termination and detailing payments. Liquidación is the calculation and total amount. In practice, both terms are used interchangeably in Guatemala.

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