- Thread starter CocoBoy
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Employee Liquidation
Last 12 payments are calculated, so if an employee is paid weekly, it's 4 months, is by weekly is 6 months and if yearly the last 12 months. :: C?lculo de Prestaciones Laborales ::
Something doesn't sound right with only entering the last few months if paid weekly. As I understand it, liquidation is based on average over the last 12 months. If salary has not changed, no problem as average will be same. But if raise was given in last year, this calculation would be too high. I use this calculator (it's in English) and never had a problem with Labor Dept. Drprestamos | Loan Calculator | Amortization Table | Loan
Verification an employee needs to be at least be emploeyd for 3 months to be able to get liquidation, the liquidation will be calculated in regard due the period of tim the employe was employed...the employee needs to apply for liquidation within 48 hours of being layed off or fired...so its always wise to handle over a letter of dismissed signed by both parties so there will be no misleading or misunderstanding...wink....
Even though employed less than 3 months and not eligible for liquidation, they are entitled to christmas bonus prorated. You still need to run the numbers. There is no rule that requires employee to apply for liquidation, but there is a rule that requires the employer to have payment for liquidation, preaviso and cesantia to the employee within 10 days of termination. Christmas pay can be paid in December when usually paid to other employees.
The cesantia is due in either case, even if the employee suffers no period of enemplyment and begins work with new employer immediately. What is a question though is payment of preaviso for an employee who quits. Technicall he is supposed to give you the same notice that you were responsible to give him if you were firing him. Most times an employer doesn't want an employee present who he has given notice to, nor an employee who has indicated he is leaving. So in most cases preaviso is paid in lieu of notice. This is the best english summary of the Labor Code I have seen. http://www.phlaw.com/pubs/rejec/en/ren_16-92_Main_aspects_of_the_Labor_Legislation.pdf
I think this person would be considered "domestic help" which is much different from an employee at a business. There has been debate (both in the government and here on DR1) about adding domestic workers to liquidation benefits. But my understanding is that as of now, liquidation payment is not required for domestic help, just pay the Christmas bonus and Vacation time payment that they are owed for that year.
But some domestic workers will try to get liquidation money also. Check to see where the labor law is before termination, because they are discussing adding the benefits to domestic help, which could become an excessive burden for middle class families to account for and that presently find it affordable to have a maid.
My former maid went to the labor court and got a judgement for liquidation pay .. it was not very much but she was only part time.. but making 8000 a month. I perhaps made the mistake of paying her by the month instead of by the day.
But the Dominican who is in your house has a sweet set up.. so you may have an issue if you try to move him out. Sounds like he lives in the house even when you are there, right?
If I were in your place, I would get some sort of contract in place with him drawn up by a lawyer. And I think that you should be prepared to pay him something if you sell, so that he can get another place. He must work somewhere else, right, ? in order to pay the electric bills?
But the Dominican who is in your house has a sweet set up.. so you may have an issue if you try to move him out. Sounds like he lives in the house even when you are there, right?
If I were in your place, I would get some sort of contract in place with him drawn up by a lawyer. And I think that you should be prepared to pay him something if you sell, so that he can get another place. He must work somewhere else, right, ? in order to pay the electric bills?
What I don't get if it is not law to pay domestic help liquidation then why have friends of mine been sued by maids, gardeners, guards etc who they have fired bc of stealing and the employees end up winning the lawsuit?!
Cresp is a good friend of mine and I am worried for him that he will get screwed over!
Get professional help. Just went through this. An employee here is due MANY things - vacation, liquidation, pension etc... And I assure you, if you are off one peso the individual has the right and will go to the labor board. They will calculate it and bring it back to you.
You will need to know the day and date they started, the history of their pay and as well if they have taken their vacations this year or received pay instead...and so on and so forth.
You will need to know the day and date they started, the history of their pay and as well if they have taken their vacations this year or received pay instead...and so on and so forth.
If an employee resigns, there is neither cesant?a nor preaviso, just vacaciones (if the employee has not taken them) and navidad.
A maid is a domestic: no liquidation is required by law. mountainannie, did you defend yourself?
A maid is a domestic: no liquidation is required by law. mountainannie, did you defend yourself?
No, I did not. I just paid. It was not that much and she had been a decent worker. I just wanted someone else.
I understand that if the property is owned by a company, the "domestic" help can claim full employee benefits.
If the property is in a person's name, this should not rightfully apply.
This is a tricky situation because the person could make a case of the housing setup being part of the payment.
Worthy of inquiring with the Ministerio de Trabajo to see what they say before taking any action.
If the property is in a person's name, this should not rightfully apply.
This is a tricky situation because the person could make a case of the housing setup being part of the payment.
Worthy of inquiring with the Ministerio de Trabajo to see what they say before taking any action.