What did Decree 1562 of August 30, 2019, add?

These would be the causes grouped in the Decree for the total or partial withdrawal of severance payments with its new additions: 

A. Total withdrawal:

Termination of the employment contract.

Employer substitution.

Decree 1562 states that the employee may withdraw the severance payment accrued up to the date of the substitution, accompanied by the agreement signed between the employee and the former or the new employer before the Severance Pay Fund.

In the case of severance payments made by the employer, these shall be paid to the employee under the terms of the agreement within five (5) working days following the date on which compliance with all the requirements set forth in the regulations in force for the withdrawal of the severance payments has been evidenced.

 3. Conversion to integral salary.

4. By death of the employee.

It established that for the withdrawal of the amounts credited to his account in a Severance Pay Fund, the request of the member accompanied by evidence, at least summary, of the termination of the contract, will be sufficient.

It also indicated that upon termination of the employment contract due to the death of the employee, the person responsible for the payment of severance payments must deliver the corresponding sums subject to the provisions of articles 212 and concordant articles of the Substantive Labor Code, that is, the article that indicates the quality of beneficiary and that such payment must be made within the following five (5) working days.

B. Partial or early withdrawals:

5. Housing financing.

Said Decree added 2 paragraphs for employers which indicate that:

• The employer shall verify the documentation submitted by the worker before he/she files the request for partial withdrawal before his/her respective Severance Fund and;
• The employer shall make the payment within five (5) working days following the date on which the worker has submitted the request with the fulfillment of all the requirements.

6. Provision of military service.

In case of ordinary call-up or call-up of reserves to perform military service, the employee may withdraw the severance pay accrued up to the date of the suspension of the contract and must submit the corresponding request, showing summary proof of his ordinary call-up or call-up of reserves to perform military service. It shall also be paid within five (5) working days following the date on which the worker has submitted the request.

7. Higher education studies.

The worker who requests the partial payment of the severance payment must prove the following requirements before the respective severance fund to which he/she is affiliated:

I. Copy of the tuition receipt indicating the value thereof.

II. Copy of the operating license of the educational institution.

III. The quality of beneficiary.

IV. In the case of withdrawal for the payment of educational credits, provide certificate of credit granted and statement of account, and accredit the payment to the educational institution.

Likewise, the amounts paid as severance payments may be withdrawn in advance to be used for higher education of the employee, his/her spouse, permanent partner, or children, through programmed savings or educational insurance, according to his/her preference and capacity.

8. Transfer of severance payments.

9. Purchase of shares owned by the State.

This last cause was not totally added by Decree 1562. Since 1996 with Decree 1171, which regulated numeral 4 of Article 11 of Law 226 of 1995, this situation was regulated as a cause for the withdrawal of severance payments. For this reason, the term of five (5) working days following the date on which the worker has submitted the request for payment of such severance payments was also established. 

Finally, the Decree states that in the event of noncompliance with the term for payment of severance payments, the Company will be subject to inspection, surveillance and control, which will be carried out in accordance with the terms set forth in the law.