Tips Before Signing the Settlement

The settlement is the document that the company delivers to the worker where the amounts settled by the employer that was owed at the end of the employment relationship are reflected. During its delivery, it must be signed to indicate that the worker has received it and is satisfied with the content of that document. These are the top tips for signing the settlement:

Top 10 tips for signing the settlement

However, to avoid later problems and for the purposes of future claims against the employer, it is very important that the worker carry out a series of preliminary checks that we detail below in the form of ten applicable tips before signing the settlement.

 1. Request a copy of everything that is requested to sign in relation to the settlement.

A copy of the settlement sealed or signed by the company must be made available to the worker , as well as a copy of any attached document that is delivered with it. It is important that we also check that the copies delivered are the same as the copies that the company keeps.

2. For greater security, the presence of a worker representative can be requested if one exists in the company.

It is a recognized right of the worker who can request the presence of a worker representative to advise him during the delivery of the settlement. In theory, the company cannot refuse, but, if it does not allow it, it is important to reflect this in the settlement by means of ” I requested the presence of a representative and it was denied ” since, if the worker’s requirement is not met, the settlement would be void with their respective consequences.

3. Check that all the concepts and amounts that correspond are included.

It is important not only to review the concepts but also the amounts that the company has determined in the settlement. Regarding the concepts, they must include, as a minimum, the salary proportional to the month worked , unused vacations and the proportional amount of extraordinary payments . There may also be other types of amounts pending payment (for example, uncompensated overtime, bonuses owed and among other concepts contemplated by the company itself). In addition, in the case of any dismissal, the compensation that has been received will also be stated.

Also read : Mistakes to avoid in salary negotiation

4. If any concept is found to be missing, it is necessary to indicate which is the missing concept or quantities and what should be added.

For the purposes of any amount claimed, we must provide the company with a record of the items and amounts that we have noticed are missing from the settlement so that the company can add them. In the event that they did not modify it, it must be recorded in writing as concepts not included in the settlement. For example, we should put the tag ” vacation missing ” in the settlement.

5. If we have doubts or we consider that the amount of any concept is not correct, we will put a tag in our signature as ” non-conforming ” or ” pending review “.

For greater security, we must show our disagreement , since the signing of the settlement is equivalent to the fact that the worker is satisfied with what it contains. This tag does not necessarily mean that the company will be sued, but it is a protection and ensures the worker can carefully check the amounts to be able to act as he deems appropriate without any impediment.

6. If the company refuses or does not deliver what is stated in the settlement in cash, we must indicate in the settlement that it is ” pending collection ” .

In addition to giving us the settlement where the amounts pending settlement are recorded, simultaneously the total amount in cash that appears in the document must be delivered. You can also deliver us in the form of a check or by transfer. Likewise, in these cases, you must also put the tag “pending check cashing” or “pending transfer receipt” . Signing the settlement without these notes means that the money indicated in the document has been collected.

7. Put the date on which the settlement was received.

At the time of signing the settlement, it is advisable to put the date on which we have received the settlement, since sometimes the company does not put it in the document or it may not coincide with the effective date on which it has been delivered to us. Although it may seem irrelevant, the effective date is important to count the claim deadlines and to verify the advance notice.

8. Read the document once more and then sign it.

It is better to sign at the end of the whole, when we have verified again that everything is correct and that the corresponding notes have been made, in addition to having a copy of the settlement. If none of these aforementioned actions have been carried out, we should not sign.

9. Do not sign if we are forced or receive pressure from the company.

It is important to keep in mind that the company cannot force or threaten us if we do not sign. With even more reason, if the company does not allow us to make the previous revisions that we have exposed, we are not obliged to sign.

10. Record the meeting where the settlement is delivered if necessary.

If we detect a situation of pressure or we consider that there is fraudulent action on the part of the company, it is advisable to record the meeting without the need to notify that the recording is taking place. In this way, we will have guaranteed proof in case we are interested in claiming.

If I do not agree with the settlement, what do I do?

If, once the indicated steps are followed, erroneous or missing amounts are later detected in the settlement , they must be requested through a claim for the amount (within a period of 1 year from when the action could be brought) or simultaneously with the challenge of the dismissal (within a period of 20 days from the effective date of the dismissal).

In the face of any doubt or claim that arises, it is advisable to receive legal advice and resort to a third-party specialist to review the settlement and ensure that it is correct.

Can the settlement be signed while on leave?

It is a very recurring question. A contract can end while the worker is on leave. This happens in those cases in which the employee has a fixed-term contract. It is not uncommon for him to go extinct while he is on disability. In any case, as a worker you will continue to receive the disability benefit and, as soon as it ends, you will be unemployed.

On the other hand, it should be noted that a dismissal cannot take place because the worker is on medical leave. If this happened, we would be facing a full-fledged unfair dismissal. Another thing is that the company does have reasons that justify the dismissal of the employee. If this occurs, you would be perfectly entitled to execute the dismissal and you would have to sign the settlement, even while on leave.

Also read : How to look for a job after conflicted dismissal?