In certain situations, an employer in El Salvador can terminate an employee’s contract without being required to pay severance. These circumstances are outlined in the Labor Code of El Salvador and only apply when the employee commits specific serious violations.
At Nieto & Nieto, we are experts in labor law and can guide you through these situations to ensure everything is done legally and fairly.
What Does “Termination Without Employer Liability” Mean?
This means an employer can terminate an employee’s contract for serious misconduct without having to pay severance. However, this is only allowed if the reasons are legally justified and the employer follows the correct procedure.
Our Advice: It’s essential to seek legal counsel to ensure all actions comply with the law and avoid potential disputes.
Main Reasons for Termination Without Severance
- Fraud During Hiring
If the employee provided false information about their skills or experience when hired, the employer can terminate the contract within the first 30 days.
Example: An employee submits a fake certificate of prior experience, and this is discovered in the first month. - Repeated Negligence at Work
If the employee consistently fails to perform their duties properly, the employer may terminate their contract.
Example: An employee repeatedly makes significant errors, disrupting company operations. - Loss of Trust in Key Positions
This applies to employees in roles of leadership, oversight, or those handling sensitive information. Loss of trust must be well-documented.
Example: A manager acts in ways that compromise their reliability or integrity. - Disclosure of Company Secrets
If an employee shares confidential information that harms the company, the employer has grounds for termination. - Serious Acts of Immorality
Any immoral behavior that affects the workplace or the employee’s performance can justify termination.
Example: An employee behaves inappropriately outside of work, damaging the company’s reputation or their ability to perform. - Disrespect Toward Supervisors or Coworkers
If an employee insults or acts disrespectfully without provocation, the employer may take action.
- Serious Workplace Disruption
Any behavior that significantly disrupts the normal workflow can lead to dismissal.
Example: Starting a physical altercation or causing a major disturbance at work. - Unjustified Absences
Missing two consecutive days or three non-consecutive days in a calendar month without valid justification can lead to termination. - Being Drunk or Under the Influence at Work
Consuming alcohol or drugs during work hours or arriving intoxicated is immediate grounds for dismissal. - Non-Compliance With Safety Standards
Repeatedly ignoring workplace safety protocols is a valid reason for termination.
Example: An employee refuses to use mandatory safety equipment despite multiple warnings.
What Should Employers Do?
- Follow the Correct Process: Notify the employee of the reasons for termination and provide clear evidence.
- Comply With Legal Requirements: In certain cases, like loss of trust, a judge may need to validate the termination.
At Nieto & Nieto, we assist employers in managing these steps to ensure compliance with the law and minimize risks.
Why Choose Nieto & Nieto?
We understand these matters can be complex. That’s why we’re here to:
- Explain the process in simple terms.
- Guide you step by step.
- Address your concerns and prevent legal complications.
Whether you’re an employer or an employee, Nieto & Nieto can provide the legal support you need to make informed and lawful decisions.
Have Questions? We’re Here to Help!
Contact us today. Our team of labor law experts is ready to assist you. Ensure your actions are compliant from the start.
At Nieto & Nieto, we’re always on your side!
