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Practical manual for Income Tax 2019.

Exempt compensation arising from termination of the contract at the employee's will (termination)

The exempt compensation will be the one set for unfair dismissals that we discussed in the previous section, provided that the voluntary termination is motivated by one of the following causes:

  1. Substantial changes in working conditions that result in a loss of the worker's dignity.
  2. Non-payment or continued delays in payment of the agreed salary.
  3. Any other serious breach of contractual obligations by the employer, except in cases of force majeure, as well as the refusal by the employer to reinstate the worker in his or her previous working conditions in cases of geographical mobility and substantial changes in working conditions provided for in articles 40 and 41 of the Workers' Statute, when a court ruling has declared them unjustified.

If the termination of the contract at the will of the employee is due to substantial changes in working conditions (working hours, schedule and distribution of working time, shift work regime, remuneration system and salary amount, work and performance system and, functions, when they exceed the limits provided for functional mobility) by which the worker is harmed but which do not result in a detriment to his dignity as a worker, compensation that does not exceed 20 days' salary per year worked is exempt, with periods of time less than a year being prorated by months, with a maximum of 9 monthly payments. .

Likewise, if the employer notifies the employee of his transfer to a different workplace in the same company that requires a change of residence, the employee will have the right to terminate his contract and receive compensation of 20 days' salary per year of service, with periods of time less than a year being prorated by months and with a maximum of 12 monthly payments .