Labor law: if an employee resigns does he get "liquidacion"?

Barnabe

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An employee has had a job for 5 years. He is unhappy and wants to resign. The company tells him that if he resigns, he will not get the "liquidacion". He was not 'liquidated" yearly.

Is it legal? Do you have to be laid off to get liquidacion?

Thanks,

Barnab?
 

Ken

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Jan 1, 2002
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An employee has had a job for 5 years. He is unhappy and wants to resign. The company tells him that if he resigns, he will not get the "liquidacion". He was not 'liquidated" yearly.

Is it legal? Do you have to be laid off to get liquidacion?

Thanks,

Barnab?

Liquidation is intended to give an employee who loses the job that he wants to continue in some money while he looks for another job. An employee who quits his job does not get liquidation. He gets paid for unused vacation and a portion of the Christmas bonus, but he does not get the liquidation benefits paid to employees who are terminated.

Dominican employees know this
 

Ken

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It is very, very common in this country for employees to decide they would rather have liquidation money than work.

Doesn't work that way. No work, no money, unless you are liquidated by the employer.
 

Dominicaus

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Do you have to be laid off to get liquidacion?
To the best of my knowledge, you do need to be laid off in order to qualify for "liquidacion"...In fact, the word means more or less that, liquidacion de contrato de trabajo....
On a related note, it is legal in the DR for a firm to "fire" and immediately rehire an employee, if the firm pays the corresponding "prestaciones" to the affected employee(s)...some firms do it as a matter of routine...to most everybody, every year.
 

william webster

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Jan 16, 2009
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To the best of my knowledge, you do need to be laid off in order to qualify for "liquidacion"...In fact, the word means more or less that, liquidacion de contrato de trabajo....
On a related note, it is legal in the DR for a firm to "fire" and immediately rehire an employee, if the firm pays the corresponding "prestaciones" to the affected employee(s)...some firms do it as a matter of routine...to most everybody, every year.

This is an easy way to do things.
Keeps you "current" w/ the liquidation and avoids that large lump sum at the of the contracto.

I have had employees ask for it - they like the money at Christmas.
That's how/why I started doing it.
 

Ken

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To the best of my knowledge, you do need to be laid off in order to qualify for "liquidacion"...In fact, the word means more or less that, liquidacion de contrato de trabajo....
On a related note, it is legal in the DR for a firm to "fire" and immediately rehire an employee, if the firm pays the corresponding "prestaciones" to the affected employee(s)...some firms do it as a matter of routine...to most everybody, every year.

Yes,, they do, but at great risk. We got a legal opinion on this from Fabio Guzman and he said the Supreme Court has ruled you still have to pay severance if the employee makes a claim even though you have paid liquidation annually. There is a period of time in the labor rules that an employee must be off job before being rehired.

One day an employer doing this may have a smart employee enjoying his annual payment as well as the total liquidation due him.
 

Dominicaus

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Yes,, they do, but at great risk. ...One day an employer doing this may have a smart employee enjoying his annual payment as well as the total liquidation due him.
In the link below, an expert seems to address this issue in the Hoy newspaper, and appears to indicate that the Supreme Court decision in fact confirmed the legality of the fire/rehire practice, without risks. It seems he was answering a question from someone who had received the fire/rehire liquidacion and apparently wanted to get more as if the first had not occurred (in Spanish, though):
CONSULTORIO LABORAL - Hoy Digital
 

Barnabe

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Liquidation is intended to give an employee who loses the job that he wants to continue in some money while he looks for another job. An employee who quits his job does not get liquidation. He gets paid for unused vacation and a portion of the Christmas bonus, but he does not get the liquidation benefits paid to employees who are terminated.

Dominican employees know this

Thanks Ken, I saw it now in the Codigo de Trabajo.

You're right, Dominican employees know this. Just that I prefered to check...

Barnab?
 

Ken

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In the link below, an expert seems to address this issue in the Hoy newspaper, and appears to indicate that the Supreme Court decision in fact confirmed the legality of the fire/rehire practice, without risks. It seems he was answering a question from someone who had received the fire/rehire liquidacion and apparently wanted to get more as if the first had not occurred (in Spanish, though):
CONSULTORIO LABORAL - Hoy Digital

It doesn't say it is clear cut, that all lawyers and judges are in agreement. Which is why the ''expert" is saying whether it is legal or not should be the subject of an amendment to the law.

Meantime, I see nothing in the article that guarantees paying liquidation annually is risk free.
 

william webster

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It may be unclear but I'll tell you one thing that is certain.

The courts and the judges in RD are VERY pro-employee..... especially against Sr Gringo but even w/ Dominicans

Horror stories abound.
 

Ken

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It may be unclear but I'll tell you one thing that is certain.

The courts and the judges in RD are VERY pro-employee..... especially against Sr Gringo but even w/ Dominicans

Horror stories abound.

I agree, which is why it pays to err on the side of caution in labor matters.
 
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MOST OFTEN THAN NOT, even if the employee leaves because he wants to leave, he gets liquidation. It's just not worth the hassle going through the labor courts (labor lawyers cost money, you know...)

Even though "legally" such employee is not entitled to liquidation, he can be a PITA if not previously "agreed upon" liquidation when he goes. Usually this is done in writing prior to employee leaving. If the business owner does not want to accept that, the employee can become a real PITA then. He can be rude to customers, do FB all his day on his computer, etc...at the end, he will be FIRED (and that is what he wants) and then even if "legally" not entitled to liquidation if he does not do his job as he should and causes his employer a loss, it is known that courts will side with such fired employee anyway.

So going to the beginning of the story, it is always better to "make arrangements" and liquidate. Otherwise you may end up with a PITA employee who causes you huge reputation damage (just imagine such employee telling a customer that he is a stupid SOB)...or he is repairing something for a customer and makes a huge mess and f***d up work that is even worse off than in the beginning, etc....I mean, do you want THAT to happen in your business? It is a known fact, happy employees mean happy customers. An unhappy employee who wants to leave but the owner is not keen on liquidating him if he leaves, well..unhappy employee means unhappy customers.
 

Dominicaus

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MOST OFTEN THAN NOT, even if the employee leaves because he wants to leave, he gets liquidation. It's just not worth the hassle going through the labor courts (labor lawyers cost money, you know...)... the employee can become a real PITA then. He can be rude to customers, do FB all his day on his computer, etc...at the end, he will be FIRED (and that is what he wants) and then even if "legally" not entitled to liquidation if he does not do his job as he should and causes his employer a loss, it is known that courts will side with such fired employee anyway....Otherwise you may end up with a PITA employee who causes you huge reputation damage (just imagine such employee telling a customer that he is a stupid SOB)...or he is repairing something for a customer and makes a huge mess and f***d up work that is even worse off than in the beginning, etc....I mean, do you want THAT to happen in your business?

Sorry, but I totally disagree with you.

I do not believe it to be a fact that most employees who want liquidacion get it just by asking to be fired or by essentially sabotaging (or threatening to sabotage) their employer...And I do not believe that the court will necessarily side with an employee that essentially sabotage his/her employer to get fired and get liquidacion.

Yes, lawyer cost money...but that cuts both ways...employees need lawyers too, don't they?...plus they also need another job don't you agree? An employee who destroys his reputation that sabotaging his/her employer in order to get liquidacion may never get another job (even if s/he does get liquidacion). Would you hire an person who did what you describe to his previous employer just to get liquidacion?
 

Eddy

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, it is legal in the DR for a firm to "fire" and immediately rehire an employee, if the firm pays the corresponding "prestaciones" to the affected employee(s)...some firms do it as a matter of routine...to most everybody, every year.
I would check the legality part.
 

Barnabe

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The end of contract by mutual agreement is a possibility offered by the codigo de trabajo. So I can't see why it would be illegal to end the contract and restart a new one?

As stated by posters above, it is a widespread practice to liquidate the employees annually. But supposedly, the workers are entitled to liquidacion only if they are fired without valid reason; there is an obvious contradiction here between the law and the practice: why do you liquidate an employee if he is not entitled to?

Which makes me think that many employers integrate the liquidacion in the cost of their workforce. They know they will pay the liquidacion, no matter what the law says.

As rubio higuey states above, it may reasonable for an employer to accept to pay liquidacion instead of going into trouble with an employee, it is a balance between the cost of liquidacion and the employee's power of nuisance.

Barnab?
 

Dominicaus

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As stated by posters above, it is a widespread practice to liquidate the employees annually. But supposedly, the workers are entitled to liquidacion only if they are fired without valid reason; there is an obvious contradiction here between the law and the practice: why do you liquidate an employee if he is not entitled to?
Don't see any contradiction...the employers who routinely terminate and rehire employees at the end of each year are technically firing them (laying them off) without fault on the employees' part...even if the employees are willing participants they have neither resigned nor done anything wrong and therefore are entitled to liquidacion...perhaps you meant that they had a one-year contract...the law does not see it that way...they are just being terminated (or laid off) for no fault of their own and hence are entitled to liquidacion even if they are offered their old jobs back, under a new contract.
 

Ken

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Don't see any contradiction...the employers who routinely terminate and rehire employees at the end of each year are technically firing them (laying them off) without fault on the employees' part...even if the employees are willing participants they have neither resigned nor done anything wrong and therefore are entitled to liquidacion...perhaps you meant that they had a one-year contract...the law does not see it that way...they are just being terminated (or laid off) for no fault of their own and hence are entitled to liquidacion even if they are offered their old jobs back, under a new contract.

Are you giving personal opinion or a guaranteed legal statement.