Partial Liquidation

Can't you give him the money, have him sign for it, then carry the debt until liquidation time? If and when that time comes, deduct it from the severance. Seems simple to me, but maybe I am being simplistic!

Lindsey

LindseyKaufman said:

Can't you give him the money, have him sign for it, then carry the debt until liquidation time? If and when that time comes, deduct it from the severance. Seems simple to me, but maybe I am being simplistic!

Lindsey

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Exactly.

I don't think you can legally take any $$$ designated for him as liquidation until such time as he is no longer employed.

There is no such thing as partial liquidation! If you let him go, he is due the entire liquidation amount within 10 days. And cannot be rehired within 3 month.
An Overview of Dominican Labor Law

Your only recourse would be a company loan, which if not paid back when the employee terminates, would be subtracted from the liquidation.

cobraboy said:

Exactly.

I don't think you can legally take any $$$ designated for him as liquidation until such time as he is no longer employed.

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Let me try this again. I guess I wasn't clear about what I meant. Give him a loan. If and when the time to liquidate comes, give him the full liquidation. Have him sign the paper that he received it. Then allow him to pay you back on the loan from his liquidation money and sign the loan paper that he did so. Maybe he would refuse and walk away. Those are the chances you take. But, if you worked on a good employer/employee relationship, he will do what is right and pay you back. And you are protected with the signed paperwork from Secretaria de Trabajo.

Would this not work?

Lindsey

LindseyKaufman said:

Let me try this again. I guess I wasn't clear about what I meant. Give him a loan. If and when the time to liquidate comes, give him the full liquidation. Have him sign the paper that he received it. Then allow him to pay you back on the loan from his liquidation money and sign the loan paper that he did so. Maybe he would refuse and walk away. Those are the chances you take. But, if you worked on a good employer/employee relationship, he will do what is right and pay you back. And you are protected with the signed paperwork from Secretaria de Trabajo.

Would this not work?

Lindsey

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I understand debts owed the employer are deductible. I don't know what proof is necesary to legally prove the debt exists.

william webster said:

I know for a fact that many companies liquidate annually..... perhaps they do that as 'fire & rehire' process.

What you're telling me is that it's all or nothing on the liquidation.. no partial --- OK
Yes, just carrying the note is what I'm doing now..... he wants to pay it of and I keep saying 'not yet'.

Its a nicely signed little piece of paper with our signatures and the amount on it.

Thanks people for helping

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While it's true that some companies liquidate their employees annually, it's tricky and you need to know very well what you are doing, else you'll end up paying the whole liquidation again. If you do it well you still will not just pay the severance pay for the time not yet liquidated, but the liquidation for all te years worked minus the earlier paid amounts, which may be a whole other number.

On another note: the severance money is definitely not his or a future obligation you have to him. If he quits he's not entitled to severance pay (although you could ofcourse choose to pay it).

In your case definitely the best option is to give him a loan, while it's more straightforward, but if you want to partly liquidate him I would find a good lawyer that makes the correct contract which assures you don't need to pay again if you would need to fire him.

I fired an employee many years ago.
I was a "Newbee" here, and let him owe me about 8,000 pesos.
"Sick Child", losing his house, business "Opportunity", "Cocaine",all the usual "BULL$HIT"!!
His liquidation came to 15,000 pesos.
HE SENT HIS WIFE TO PICK IT UP.
i GAVE HER 7,000, and a message for her husband.
"F*#K YOU"!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
Rule # 3b, sub section 4,............. "In the DR, "NO Good Deed Goes UNPUNISHED"!!!!!!!!!!!!!!!!!!!!!!!

I think the "fire & rehire" policy was outlawed long time ago. So was borrowing against your severance, or salary.
I know you have good intentions, but please make sure you don't do anything illegal or the employee might sue you later.