liquidation questions

Fleur de Santiago

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Sep 20, 2010
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Legal advice needed:

I teach at a bilingual colegio in the DR. Every year, this institution liquidates it's employees at the end of June and then re-hires them in mid-August. From what I have been told, this process is not legal due to the fact that they are not waiting the required 90-day period to re-hire the same employees.

In addition to this, the liquidation check is not payed upon "dismissal". Rather, the liquidation checks often come at the end of July or beginning of August, approximately 4-5 weeks after all of the employees contracts have ended. This seems to be the pattern for this institution, as this has happened for the past 3 years, as well as the December bonus being paid around the 23rd of that month as well.

Am I right in assuming that this is not legal? Is there a particular time frame in which the check is supposed to be paid? Is there anything that I can do about this? Is it worth my time going to the Dept of Labor or having an attorney contact the institution?

They have really put a lot of their employees in a financial pinch, going 5-6 weeks without any sort of pay. Any advice would be much appreciated.

Thanks in advance.
 

Ken

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Jan 1, 2002
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Very likely you could cause the colegio problems if you went to the Dept of Labor.

But how important is it to you to have this job? I would consider that very carefully before going to Labor.

Have you tried talking with the people at the colegio about how difficult it is to get through the weeks until the payment is received?
 

Fleur de Santiago

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Sep 20, 2010
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Very likely you could cause the colegio problems if you went to the Dept of Labor.

But how important is it to you to have this job? I would consider that very carefully before going to Labor.

Have you tried talking with the people at the colegio about how difficult it is to get through the weeks until the payment is received?


I am not too worried about my job, in that I am working somewhere else now. This has been a pattern for the last 3 years and I have a suspicion that the director is behind a lot of this mess. There appears to be a lot of illegal activity going on in the school, which is why I am not returning.

They leave their employees in limbo every Christmas and every summer, knowing that no one will report them because they will lose their job the upcoming school year. Being that I am not returning, I would really like to speak up for my previous co-workers, as they are afraid to do so. This has been a dilemma for quite some time.

Does reporting this issue to the Dept of Labor really mean something? I am not aware as to how this office acts on these issues.
 

Hillbilly

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Jan 1, 2002
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There are a couple of explanations for this and these are part of the push to (1) withhold student's grades and Documents until tuition is paid, (2) report parents in arrears to the local credit agencies and even (3( not allowing students to take tests at year's end until they do pay up to date.

The fact that the liquidate each year, is interesting, because this is a beastly expensive process. I can't see them making any money on it. But I am not a labor lawyer or businessman of any sort...what do I know.

I think I would feel out the Labor Dept, and get a feel for the situation, you know, "hypothetically" ....and see if they are really in big trouble.

Remember, in the states most contracts for teachers are 10 months...you have to do for yourself in the summer...like teach summer school or tutor or Walmart.

HB
 

Ken

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Jan 1, 2002
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Since you are no longer working for that employer, I'd leave it alone. For various reasons, not the least being you are likely to put your former colleagues between a rock and a hard place. The Labor people are not going to do much just on your say so. If they follow up, they will be interviewing other employees, who will then have to decide whether to speak against the employer they probably depend on for a job or down play your complaint.

Leave it alone.
 

CaptnGlenn

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Mar 29, 2010
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There are a couple of explanations for this and these are part of the push to (1) withhold student's grades and Documents until tuition is paid, (2) report parents in arrears to the local credit agencies and even (3( not allowing students to take tests at year's end until they do pay up to date.

The fact that the liquidate each year, is interesting, because this is a beastly expensive process. I can't see them making any money on it. But I am not a labor lawyer or businessman of any sort...what do I know.

I think I would feel out the Labor Dept, and get a feel for the situation, you know, "hypothetically" ....and see if they are really in big trouble.

Remember, in the states most contracts for teachers are 10 months...you have to do for yourself in the summer...like teach summer school or tutor or Walmart.

HB

Or go surfing. ;-)
 

Acira

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Sep 20, 2009
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www.blazingfuries.com
Since you are no longer working for that employer, I'd leave it alone. For various reasons, not the least being you are likely to put your former colleagues between a rock and a hard place. The Labor people are not going to do much just on your say so. If they follow up, they will be interviewing other employees, who will then have to decide whether to speak against the employer they probably depend on for a job or down play your complaint.

Leave it alone.

Ken is right, leave it unless, and then still questionable, you know that your ex-colleagues want you to speak for them and as Ken says know the consequences, that is, being interviewed themselves also.
 

belmont

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Oct 9, 2009
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Some points to consider:
  1. The school prefers to liquidate each year because their liability for periodsless than 1 year is 13 days liquidation. If they go over 1 year it becomes 21 days liquidation for each year of employment. If they know every employee is eventually going to be liquidated, this saves them 8 days per year worked.
  2. Liquidation must be paid within 10 days of termination. If not the employee is entitled to be paid up to the date liquidation is paid.
  3. There is an absolute prohibition in rehiring in less than 90 days.
  4. Christmas (13th) Salary must be paid by December 20.
If a complaint were to be filed, and the Labor Board found this to be a concerted effort to circumvent the Labor Law, they can recalculate payments retroactivly. My guess is the Board will deem that the employees have not been liquidated properly and now have dates intitial hire going back to their initial hire. In labor cases, there are a large number of attorneys that will take these cases on contingency as the labor Board will often add legal fees to their penalties against the employer.

I have found that the Law Firm of Pellerano and Herrera publishes and excellent executive summary of the labor law in English. http://www.phlaw.com/en/publications/Main_Aspects_Ruling_Labor_Code_Nov2007.pdf
 

Hillbilly

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Jan 1, 2002
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If you do it right you could probably bankrupt the school, which you probably do not want to do. Which is why I suggested that you do it hypothetically...not mentioning names, not giving any indication where or why.

And you know, the teachers might like to be liquidated, especially if they know that in August they will be rehired...it is a nice bundle of cash to tide them over the summer...seems so Dominican at some level.

HB
 

belmont

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Oct 9, 2009
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And you know, the teachers might like to be liquidated, especially if they know that in August they will be rehired...it is a nice bundle of cash to tide them over the summer...seems so Dominican at some level.
HB
Under the system described by the OP, they are receiving 13 days pay as liquidation, hardly a nice bundle of cash. In fact, by delaying the payment of liquidation 4-5 weeks, the employees are actually owed 20-25 days additional salary.

Yes, a complaint may bankrupt the school, but a school should display moral character to its students and follow all of the laws of the land, not just the ones they choose to. I certainly could unfairly compete with my competitors and drive them out of business if I could choose which laws to follow and which taxes I felt like paying. I certainly would not want to pay tuition to a school for my children knowing they are corrupt in thei administration. Where else are they cutting corners? Background checks on teachers? Lunches? Computers?
 

Hillbilly

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Jan 1, 2002
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Oh you are right there, for sure. The delay is nasty. But they should get after 1o months employment some serious cash (but I have not gone to the website to calculate it!!! Just figuring is all). But as you say, if school ends in June and they are "liquidated" in mid July, there is only a question of weeks before classes start again in August!

Seem like a consult--hypothetical situation--in order to get to the bottom of this...

HB
 

tink23

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Jul 15, 2008
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I was liquidated last year and was paid more than my regular salary. Definitely not only 13 days of the salary. I'm waiting on my liquidation from this year and it has passed the 2 week mark.
Is there a government website or something where one can put in their amount of time worked and get a general idea of what their liquidation will be? My employer also liquidates each summer and rehires again at the beginning or mid August.

I'm going to add, it doesn't bother me to be liquidated each summer as the pay off seems to be better than the regular pay... except for that the August pay cheque is a little less since it's not an entire month.
 

belmont

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Oct 9, 2009
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For employment of 6 months to 12 months, liquidation equals 13 days of pay. What also may be added is they are required to give 14 days notice (most times this is paid with liquidation as an employer doesn't want an employee he terminated on premises for 14 days). He can also include the portion of Christmas pay up to that point. You will also be paid 10 days vacation due for 9 months if you haven't already taken it. Here is the calculator: Drprestamos | Loan Calculator | Amortization Table | Loan
 

belmont

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Oct 9, 2009
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Important point I failed to mention, a school can liquidate yearly as long as they notify you and give written contract that this position is not a year-long position (i.e. only regular school year) and your position actually doesn't exist during the summer.. But, they must adhere to all povisions of work code for liquidation, vacation pay, notice, Christmas, profit sharing, etc in a timely manner. Timely is within 10 days of last day of work.