Employment Termination Calculator 2024 - Calculate Severance

Employment termination is the moment when an employment contract comes to an end, but calculating the correct severance benefit amounts can be complex. Each type of termination generates different rights, and understanding these differences is essential to avoid losses.

Under current CLT (labor law) rules, workers can receive up to eight different severance benefits, depending on the reason for termination. Incorrect calculations can result in losses of thousands of reais.

Types of employment termination

Employer-initiated (dismissal without just cause)

Dismissal without just cause is the type that guarantees the most rights to workers. It represents about 70% of terminations in Brazil, according to CAGED data.

The employer can dismiss without presenting a specific reason but must bear all termination costs. This is the most financially advantageous situation for the worker.

Resignation

In a resignation, the worker themselves requests termination. In this case, they lose the right to unemployment insurance, the 40% FGTS (severance fund) penalty, and fund withdrawal.

Prior notice must also be fulfilled by the employee or deducted from salary if not worked.

Mutual agreement

Mutual agreement was created by the 2017 Labor Reform. It allows employer and employee to reach consensus on termination.

In this type, the worker receives:

• 50% of the FGTS penalty (20% instead of 40%)
• Half of the compensated prior notice
• Can withdraw 80% of FGTS
• No right to unemployment insurance

Just cause

Dismissal for just cause can only occur when the employee commits a serious offense listed in article 482 of CLT. This type offers the fewest rights to workers.

The employee loses the right to prior notice, FGTS penalty, unemployment insurance, and proportional 13th salary (if they didn’t work more than 15 days in the year).

Severance benefits by type

Salary balance

Salary balance corresponds to days worked in the termination month. It’s due in all types of termination, without exception.

To calculate, divide the salary by 30 and multiply by days worked in the termination month.

Example: Salary R$ 3,000, worked 15 days → R$ 3,000 ÷ 30 × 15 = R$ 1,500

Prior notice

Prior notice can be worked or compensated. Its duration varies according to length of service:

• Up to 1 year: 30 days
• Over 1 year: 30 days + 3 days per year worked (maximum 90 days)

Proportional 13th salary

Proportional 13th salary is calculated based on months worked in the termination year. Periods of 15 days or more count as a full month.

Formula: Salary ÷ 12 × number of months worked

Example: Salary R$ 2,500, worked 8 months → R$ 2,500 ÷ 12 × 8 = R$ 1,666.67

Accrued and proportional vacation + 1/3

Accrued vacation refers to completed acquisition periods not yet taken. Proportional vacation refers to the current acquisition period in progress.

Both receive the constitutional 1/3 bonus. The calculation considers:

• Accrued vacation: full amount + 1/3
• Proportional vacation: (salary ÷ 12) × months worked × 1.33

FGTS and termination penalty

FGTS balance is always available for withdrawal in dismissal without just cause or mutual agreement. The employer deposits 8% of salary monthly.

Termination penalty varies by type:

• Dismissal without just cause: 40% of FGTS balance
• Mutual agreement: 20% of FGTS balance
• Resignation or just cause: no penalty

How to calculate each benefit

Formulas and practical examples

For an employee with salary of R$ 4,000, dismissed without just cause after 2 years and 6 months of work:

Benefits due:

• Salary balance (15 days): R$ 2,000
• Compensated prior notice (36 days): R$ 4,800
• Proportional 13th salary (6 months): R$ 2,000
• Proportional vacation + 1/3: R$ 2,664
• 40% FGTS penalty: R$ 3,840

Total termination amount: R$ 15,304

Termination deductions

The following are deducted from termination:

• INSS (social security) (on balance, notice, 13th salary, and vacation)
• IRPF (income tax) (when applicable)
• Child support (if any)
• Payroll loans

Payment deadlines

The employer has 10 calendar days to pay severance benefits, counted from contract end. Delays generate a penalty equal to the employee’s salary.

Union approval is mandatory for contracts over 1 year. Shorter contracts can be approved at the company itself.

Automatic termination calculator

Our employment termination calculator automates all these complex calculations. Just enter your basic information:

• Current salary
• Hire and termination dates
• Termination type
• FGTS balance

The system automatically calculates all benefits, deductions, and net amount receivable. It saves time and avoids manual calculation errors.

Rights in special cases

Provisional job security

Pregnant women have job security from pregnancy confirmation until 5 months after birth. If dismissed, they must be reinstated or compensated.

Safety committee members have job security during their term and for 1 year after. Dismissal without just cause during this period is void.

Workers over 50 years old

There’s no specific job security, but TST Precedent 244 guarantees double compensation if dismissed near retirement without just cause.

Hazard and health risk pay

These additional payments become part of salary for severance calculation when paid regularly for more than 12 months.

Commission workers and salespeople

For commission workers, the average of commissions from the last 12 months is considered. If less than this period, calculate by the average of the period worked.

Frequently Asked Questions

When am I entitled to unemployment insurance upon termination?

Only in dismissal without just cause and indirect dismissal. In mutual agreement, resignation, and just cause, there’s no right to the benefit. You must have worked at least 12 months in the last 18 months.

Can I withdraw my FGTS in any type of termination?

No. Full withdrawal is only allowed in dismissal without just cause, mutual agreement (80% of balance), and indirect dismissal. In resignation and just cause, FGTS remains blocked until retirement.

What happens if the company delays termination payment?

The company must pay a penalty equal to your salary for the delay. Additionally, you can seek your rights in Labor Court, which may order payment with monetary correction and interest.

How does compensated prior notice calculation work?

Prior notice is calculated on full salary, including averages of overtime, bonuses, and regular commissions. For 2 years at the company, for example, that’s 36 days: R$ 3,000 ÷ 30 × 36 = R$ 3,600.

How long before accrued vacation expires?

The statute of limitations to claim accrued vacation is 5 years after contract termination, limited to the last 5 years of the employment relationship. But it’s better to claim it right at termination.

Can I challenge my termination amount in court?

Yes. If there are discrepancies in calculations or unpaid benefits, you have up to 2 years after termination to file a claim in Labor Court. Keep all documents like pay stubs and termination papers.

What changes in intermittent contract termination?

In intermittent contracts, benefits are calculated proportionally to periods worked. Prior notice corresponds to the average hours worked in the last year, and 13th salary and vacation follow the same proportionality.