On January 22, 2025, the plenary session of the National Court of Justice issued Resolution No. 02-2025, which establishes a mandatory precedent regarding the calculation of severance payments for unjustified dismissal.
Key points of the precedent:
The remuneration applicable to calculate severance payments must always be the last one received, provided that it is more favorable to the worker. This means that, when determining the severance payment:
- The last best salary received will be taken into account. • Either the salary from the previous month or from the same month in which the dismissal occurred may be considered.
This criterion aims to ensure the protection of the worker, guaranteeing that the most advantageous salary base is used when calculating the severance. The resolution does not specify whether only the value corresponding to the best month’s salary or the components specific to the settlement will be considered for its application.
Implications for employers and employees:
- Employers will need to adjust their decisions on this matter based on this mandatory precedent. • Employees may seek an unjustified dismissal at the time they deem most favorable to maximize their severance payment.
Edmundo Ramos, Partner at CorralRosales
eramos@corralrosales.com
+593 2 2544144
Mateo Zavala, Associate at CorralRosales
mzavala@corralrosales.com
+593 2 2544144