Product description

Severance payments are a social benefit established by law at the expense of the employer and in favor of the worker. They correspond to one month of salary for each year worked. Each year they are deposited to a severance fund, which is freely chosen by the member.

The maximum period that the employer has to deposit them to the Fund is February 14, or the date of termination of the employment contract; If the employer enters into default, they must pay one day of salary for each day of default; The deposit must be made in the severance fund account that the employee chooses.

Coverages

This instrument has as its rationale to protect people when they are unemployed, however they can also be used to:

• Higher Education, of the worker, spouse or children in educational entities recognized by the State or Payment of Credits of the ICETEX
• Acquisition of Housing, their improvements or construction and payment of property taxes.

Interest is generated that corresponds to 12% per year and is paid directly to the worker, not deposited in the fund

How can it be obtainded?

• Dependent Workers: Copy of identification document and filling out form of the chosen Fund, must have the approval of the employer
• Independent Workers: Copy of the identification document and filling the form of the chosen fund
• It must take into account that for transfer of Severance Payments between Funds must have a minimum stay of 12 months in the Previous Fund