Liquidation Question

SantiagoDR · Dec 7, 2016

Sr. Fabio J. Guzman

A friend of mine who has worked at a store for many years was just informed that the owner died recently. Naturally he is concerned about the following 2 items.

(1) Can the family just close the store, etc. and not paid liquidation to the employees?

(2) Can the family avoid paying the Christmas bonus?

Thanks in advance.

Riva_31 · Dec 8, 2016

SantiagoDR said:
Sr. Fabio J. Guzman

A friend of mine who has worked at a store for many years was just informed that the owner died recently. Naturally he is concerned about the following 2 items.

(1) Can the family just close the store, etc. and not paid liquidation to the employees?

(2) Can the family avoid paying the Christmas bonus?

Thanks in advance.

No, they can not do that, has to give liquidation if they will close. Now the ladies that works informaly helping in houses has the right to get the 50% of the amount of their liquidations as the owner of the house provide her the food and sometimes also a bed, and has the right of 14 vacations days and day off.

Mauricio · Dec 8, 2016

Riva_31 said:
No, they can not do that, has to give liquidation if they will close. Now the ladies that works informaly helping in houses has the right to get the 50% of the amount of their liquidations as the owner of the house provide her the food and sometimes also a bed, and has the right of 14 vacations days and day off.

Ladies informally working in houses don't have a right to liquidation, although giving it wouldn't be such a bad idea. Vacation and double salary: yes.

On te OP's question, who owes the liquidation and double salary is the company, not the owner. An employee doesn't lose his rights because the owner of the place dies.*

Seamonkey · Dec 8, 2016

There are too many variables involved to make that decision. Is the family currently involved in the business? does the business have any money in a bank account? does the business have chattels that can be sold? If the owner dies and the family is not involved, it is not their responsibility to pay out anything. They can just close the business and the employees can file a case against the corporation and seek restitution. Like I said, too many variables to give an opinion on this.

SantiagoDR · Dec 8, 2016

Thanks to those that responded for the insight, greatly appreciated.

bienamor · Dec 8, 2016

SantiagoDR said:
Thanks to those that responded for the insight, greatly appreciated.

Wait for Fabio to respond.

Derfish · Dec 8, 2016

Mauricio said:
Ladies informally working in houses don't have a right to liquidation, although giving it wouldn't be such a bad idea. Vacation and double salary: yes.

On te OP's question, who owes the liquidation and double salary is the company, not the owner. An employee doesn't lose his rights because the owner of the place dies.*

I know an illegal Haitian who recently went to the fiscal and collected liquidacion from a home owner for whom she had worked less than 6 months. Yes informal workers have rights too.
Der Fish

Riva_31 · Dec 9, 2016

Mauricio said:
Ladies informally working in houses don't have a right to liquidation, although giving it wouldn't be such a bad idea. Vacation and double salary: yes.

On te OP's question, who owes the liquidation and double salary is the company, not the owner. An employee doesn't lose his rights because the owner of the place dies.*

If you go and ask to the labor department they will tell you yes, the payable amount is 50% of the calculation. the other 50% you keep it as you was providing the food they ate.

Fabio J. Guzman · Dec 9, 2016

SantiagoDR said:
Sr. Fabio J. Guzman

A friend of mine who has worked at a store for many years was just informed that the owner died recently. Naturally he is concerned about the following 2 items.

(1) Can the family just close the store, etc. and not paid liquidation to the employees?

(2) Can the family avoid paying the Christmas bonus?

Thanks in advance.

(1) The family (the heirs) can certainly close the store, but must pay the employee (2) They must also pay the Xmas bonus. Heirs to the estate are bound to the same obligations toward the employee as the deceased.

Mauricio · Dec 9, 2016

Riva_31 said:
If you go and ask to the labor department they will tell you yes, the payable amount is 50% of the calculation. the other 50% you keep it as you was providing the food they ate.

We have dont that in two occasions and the answer of the labor department was that you are not legally obliged to pay liquidation to informal workers in your house (many talks since a few years to change that though). However, it is of course typically dominican practice to get different answers from the same office or even same person on the same question.

On the 50% retainer for the food you provided, that doesn't sound as making any sense to me. If that would have to do with it, it would mean you would pay a higher liquidation, since part of their remuneration *was the food and roof you provided. What they told you sounds to me like something someone made up. (another Dominican practice)

AlterEgo · Dec 9, 2016

Mauricio said:
We have dont that in two occasions and the answer of the labor department was that you are not legally obliged to pay liquidation to informal workers in your house (many talks since a few years to change that though). However, it is of course typically dominican practice to get different answers from the same office or even same person on the same question.

On the 50% retainer for the food you provided, that doesn't sound as making any sense to me. If that would have to do with it, it would mean you would pay a higher liquidation, since part of their remuneration *was the food and roof you provided. What they told you sounds to me like something someone made up. (another Dominican practice)

Mauricio, you and I have private homes. If, at any time, we rented out a room, sold produce or food, did anything commercial on our property, etc., the rules for the maid, gardener and liquidation changes. Maybe this is what Riva means?

wrecksum · Dec 10, 2016

When I closed up I sent my employees along with their contracts to the Ministerio de Trabajo who calculated what dues were necessary and issued a formal and signed document.That way you are covered.Everyone is happy that way as well.
After I paid them I then had them sign a document of full and final payment which I will keep for ever.
It's a minefield..tread carefully.

Riva_31 · Dec 11, 2016

AlterEgo said:
Mauricio, you and I have private homes. If, at any time, we rented out a room, sold produce or food, did anything commercial on our property, etc., the rules for the maid, gardener and liquidation changes. Maybe this is what Riva means?

No, this apply for anybody that you hire to woek in your house as permanet worker. *Even an ilegal person living here has all the rights that has a legal worker.

AlterEgo · Dec 11, 2016

Riva_31 said:
No, this apply for anybody that you hire to woek in your house as permanet worker. *Even an ilegal person living here has all the rights that has a legal worker.

Sorry, you are wrong. *When we fired a gardener a year or so ago, he demanded 80,000 pesos for liquidation, because someone told him he was entitled to it. *We weren't sure, so my BIL went with him to the labor dept in Santo Domingo, and we were told no workers in private homes, "domestic employees ", are entitled to it, only their prorated vacation. *He was outraged and caused a scene, we offered him a lot more than they said (it was on a printed document with a seal), he refused it and walked out. *A few days later he accepted our offer and signed the paper. *

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