Compensation for Length of Service: The Case of Latin America Based on the Release of Intangible Social Benefits Promoting Economic Reactivation Post COVID-19

Abstract

Reactivating the economy during a health crisis involves initiatives to enhance market activities both domestically and internationally. Various governments around the world have strategically decided to act, taking into consideration employment benefits. This research aimed to determine economic satisfaction in the Latin American population as a result of the release of Severance for Time of Service (Compensación por Tiempo de Servicio - CTS), an indicator of intangible labor performance. This study employed a descriptive-analytical methodology with a quantitative, nonexperimental transactional design, focusing on various countries in Latin America with emphasis on Costa Rica, Colombia, Chile, Peru, and Ecuador. The study applied a survey through a virtual form and concluded that 13% lacked or were unaware of the benefit of their time of work, 54% agreed with the measures of their government, and 14% showed disinterest in the calculation of the CTS. It was concluded that strategic economic reactivation, in tandem with employment benefits during a crisis, had a positive effect on the economy of active workers during the pandemic.

Received: 3 November 2023 / Accepted: 29 January 2024 / Published: 5 March 2024