Concept in Definition ABC

The term settlement is used to designate a type of documentlegal Y labor which applies in cases where an employment relationship between employee and employer must be terminated for various reasons. As with all aspects of relationships and work activities, the type of bond that is established between both parties, as well as the duties and rights of each one must be correctly clarified in documents. The settlement is a very important since it is the one that puts in perspective the work performed by a person and contains the necessary information for when the employment relationship should be terminated.

The settlement name comes from verb settle which means to end or end something. Although this verb can be used in many different situations, it serves to give the exact idea of ​​what type of document the settlement will be. As it says then its denomination, the settlement is the paper or legal document that is established between the two parties that made up the employment relationship until that time: the employee and the employer. In this way, through it you can

order and clarify the information.

The settlement has several parts. First of all, you must have the personal data of the people involved in the balance sheet. It could be said that each settlement is a person's unique document and that it cannot be shared with others; is a species balance sheet or final file of the individual in question. The settlement, after clarifying data such as names, identification numbers, start and end dates of that relationship, etc., must clarify two main elements: how much is owed to the employee at the time of termination of employment and how much should be deducted from that amount for different reasons. Thus, the settlement can clarify, for example, that the employee is owed three days of vacation but also that one of those days will be subtracted because the employee was absent once so unjustified. Finally, the settlement must include the final balance of such balances and the signature of both parties that implies the common agreement on it.

Issues in Settlement