What is Liquidación?
The liquidación (final settlement) is the calculation of everything the employer owes when the contract ends: cesantías and interest, proportional prima and vacation, and pending salary.
If the dismissal is without just cause, a severance payment is added depending on length of service and type of contract.
In practice
When the contract ends, the worker receives in the liquidación the cesantías, the proportional prima and vacation, plus the days of pending salary.