Labor Attorney (to defend the employer)

Apr 13, 2011
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Giving them a report every month of the 10% is a really good idea. That should help in the future.

Liquidation payments are meant to be the way of dealing with unemployment while the person looks for a new job.
But many times it ends up working out differently. There are people who will abuse the system, no matter what system is put in place.

The sad thing is, even without abusing the system, you could have a good employee that has been working for you for a few years, and after a while they could be tempted by what they could do if they got their liquidation payment as opposed to staying at a good job - especially since it gets paid as a lump sum...
 

AlterEgo

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Jan 9, 2009
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Giving them a report every month of the 10% is a really good idea. That should help in the future.

Liquidation payments are meant to be the way of dealing with unemployment while the person looks for a new job.
But many times it ends up working out differently. There are people who will abuse the system, no matter what system is put in place.

The sad thing is, even without abusing the system, you could have a good employee that has been working for you for a few years, and after a while they could be tempted by what they could do if they got their liquidation payment as opposed to staying at a good job - especially since it gets paid as a lump sum...

You're right. I think the law has to be amended so that people don't get liquidation if they voluntarily quit their jobs.
 

bob saunders

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Jan 1, 2002
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You're right. I think the law has to be amended so that people don't get liquidation if they voluntarily quit their jobs.

They don't. My wife has only fired two people in twenty years, and they both received liquidation. All those that quit - only the Christmas bonus.
 

AlterEgo

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They don't. My wife has only fired two people in twenty years, and they both received liquidation. All those that quit - only the Christmas bonus.

I'm glad to hear that, I thought that Sr. Guzman had said that those who quit get nothing, but I never could find the post. I've been told by others who live in DR that "everyone gets liquidation".

Is the Christmas bonus prorated, or do they get the entire month?
 

bob saunders

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Jan 1, 2002
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I'm glad to hear that, I thought that Sr. Guzman had said that those who quit get nothing, but I never could find the post. I've been told by others who live in DR that "everyone gets liquidation".

Is the Christmas bonus prorated, or do they get the entire month?

pro-rated. Most of the private schools here in Jarabacoa sign their Dominican teachers up to a one school term contract. That way they can just not rehire them, or re-hire them to another one year contract, therefore avoiding the severance. We don't do this, except with student hires.
 
Feb 7, 2007
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The law says one thing, the custom is another thing. I have seen people that leave voluntarily and give preaviso that they get liquidation as well. One acquaintance of mine has just left his job as a marketing manager for a DR company to get a job in Canada, and he got liquidation.

I have also seen some Punta Cana resorts fire everybody once a year, give liquidation, and immediately rehire.

I guess the liquidation is a cost of doing business, and I think for businesses it's good idea to create "liquidation funds", maybe depositing 10% of each employee's salary into the fund, so when they have to pay the liquidation they are not hit with a snowball about to hit them.
 

Dolores1

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May 3, 2000
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[I have also seen some Punta Cana resorts fire everybody once a year, give liquidation, and immediately rehire.]

Those that do that are wasting their money. Rehiring immediately in the courts will restart the same contract.