Penalties for non-payment of severance payments and their interest

Pursuant to Article 1 of Law 52 of 1975, the employer must pay to its employees no later than January 31 of each year the interest on severance payments liquidated as of December 31 of the immediately preceding year, which corresponds to 12% per annum on the balances of the severance payments liquidated.

As provided in Article 99 of Law 50 of 1990, the employer must liquidate the severance payments of its employees for the year or fraction thereof worked as of December 31 of the immediately preceding year; in addition, it is obliged to deposit them before February 14 of the following year, in the fund chosen by the employee for such purpose.

Penalty for non-payment of severance payments and payment of interest if the employer does not pay the worker the interest on the severance payments within the dates stipulated in numeral 3 of the aforementioned article 1 of Law 52 of 1975, which consists of having to pay the worker, as indemnification, and only once, the additional value equal to the interest caused.

Now, with regard to the severance payments, in the event that the employer does not consign them to the fund on the indicated date, it will incur in the penalty mentioned in the third numeral of the mentioned article 99 of Law 50 of 1990, which provides for a penalty, to the employer, of one day’s salary for each day of delay.

Source: Actualícese

Sanciones por incumplir con la consignación de las cesantías