The TFR, or indemnity , it is for employees in the event of termination of contract, resignation or dismissal by the employer.
Without going into complex calculations, the TFR is equivalent to a usually months' net salary for every year worked . If you do not get to a year of service, we compute the month (1 / 12 of monthly salary for months worked).
Calculations of indemnities that I have indicated above are approximate but useful to understand the amount of the liquidation.
Remember that there are some amounts excluded from the wage useful for the calculation of severance pay:
- the expense
- the
- a lump sum payment of overtime and holiday
- compensation for redundancy, leave and travel
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