The contract may be terminated in the following circumstances: upon the expiration of the term or termination of the work for which the employee was hired; upon mutual agreement of the parties; upon the death or permanent disability of the person worker from performing the work contracted; upon the death, incapacity, or retirement of the employed person; upon the worker's deprivation of liberty by a court; upon the worker's declaration of ban.
The employer may terminate the contract by providing a notice stating that one day per month will be worked up to a maximum of 90 days and that compensation will be paid.
An employee may terminate the contract in the following circumstances: without prior notice during the trial period. The termination comes with ten days notice if the employee has worked for the company for less than a year; plus one day for each month worked, up to a maximum of thirty days if the employee has worked for the company for more than a year; and without prior notice if an accident or force majeure occurs.
There is a one-day notice period for each month of service, up to a maximum of 90 days. Employment contracts may have a variety of various notice provisions. Employees are expected to provide their employer between 14 and 30 days notice of their resignation.
If no just cause is established, the discharged employee is entitled to indemnification under Act No. 80, referred to as the "mesada." This payment serves as the sole remedy for an employee alleging unjust dismissal. If an employee is terminated without cause, he or she is entitled to the equivalent of two months' salary plus one week's pay for each full year of service, if the employee has worked for the employer for up to five years. If the employee has worked for more than five years but less than fifteen, he is entitled to three months' salary plus two weeks' pay for each year of service. Employees who have worked for their employer for at least 15 years are entitled to six months' salary plus three weeks' pay for each year of service.
Regardless of the foregoing, an employee hired on or after January 26, 2017 who is terminated without cause is entitled to severance pay consisting of twelve weeks' salary (the Law states "three months," but for the purposes of this calculation, a "month" is defined as four weeks), and an additional amount equal to two weeks' salary for each full year of service. Compensation is capped at nine "months," or thirty-six weeks.
Probation periods must be agreed upon in writing for both indefinite and fixed-term contracts and cannot exceed one month. Probation periods may be up to three months for managerial positions where the agreed remuneration exceeds three times the minimum salary.