Christmas Pay

cjewell

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Oct 11, 2004
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Does anyone have a link to a site that helps calculate Christmas pay? If not - does anyone know the calculation? I have staff working for me 4 months so I know it is not the full double pay. A lawyer told me it is a calculation/pro rated... just wondered if anyone has insight?
 

cjewell

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Oct 11, 2004
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Awesome... funny right after this post my lawyer emailed back with the same calc..!! Hopefully this thread helps any other newbie business owners =) with the same issue.
 

dv8

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Sep 27, 2006
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as kateP says, it's a proportion of a salary paid this year so far. usually paid on or before 15th of december.
 

La Profe_1

Moderator: Daily Headline News, Travel & Tourism
Oct 15, 2003
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That's not much different than just paying an extra month, is it?

Basically it is an extra month for an employee who worked all year. Someone hired late in the year would legally be entitled to much less than a full month's salary.
 

dv8

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bob saunders

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Jan 1, 2002
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We will be paying on the 19th. It's a huge wallop to small businesses as they can't charge double to make up for it, however it does what it is intended to do, put lots of money in circulation for the holidays.
 

william webster

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Jan 16, 2009
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Its the law.... every employee

as discussed before,
its not a bad idea - every year or two- to 'liquidate' the employees

you will owe this one day.... an ongoing liability for all employers
so to lessen the inevitable $$$ burden, fire them and rehire them

they LOVE getting the extra $$$, you'll love not being 'on the hook'.... win/win
expensive, but ........ inevitable

I do this.... I'm not blowing smoke.

just calculate the cost 5 yrs out.....

and - I think- it makes for a more reliable employee, not vice versa...... just me

my man bought a new moto with his
operation for the children
fix up the parents' house

I have seen all this done with that money

not all have jobs....

Cost ??
dependente..... a bit over 100,000 pesos this year for me.... the doble diciemebre and liquidacion

ouch !!!
 

Domdream

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Jul 26, 2014
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Its the law.... every employee

as discussed before,
its not a bad idea - every year or two- to 'liquidate' the employees

you will owe this one day.... an ongoing liability for all employers
so to lessen the inevitable $$$ burden, fire them and rehire them

they LOVE getting the extra $$$, you'll love not being 'on the hook'.... win/win
expensive, but ........ inevitable

I do this.... I'm not blowing smoke.

just calculate the cost 5 yrs out.....

and - I think- it makes for a more reliable employee, not vice versa...... just me

my man bought a new moto with his
operation for the children
fix up the parents' house

I have seen all this done with that money

not all have jobs....

Cost ??
dependente..... a bit over 100,000 pesos this year for me.... the doble diciemebre and liquidacion

ouch !!!

The government is cracking down on this behavior. I know two business owners who doing this over a five year period were caught because fired an employee after one of the "resignings". The employee went to the minister de trabajo and when asked how long they had worked for the discrepancy became apparent.
 

Domdream

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Jul 26, 2014
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On the Christmas bonus if the employees have only worked for four months you owe them 1/3 of their monthly salary as a bonus
 

william webster

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Jan 16, 2009
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I expect you're right.... you cannot 'fire ' them without following procedure BUT

you can mitigate your severance costs by liquidating them regularly

my suggestion is only to reduce a future liability, not to try and get rid of an employee

sorry if that wasn't clear.

want to fire with no penalty?
file 3 strikes at the Ministry and you're off the hook
 

william webster

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Jan 16, 2009
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I think thats right JDJ...

just pay and they MUST walk

I ' m not arguing
I was talking/typing in a different vein

Pay the severance and they have no recourse......... is my understanding
 

bob saunders

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Jan 1, 2002
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I expect you're right.... you cannot 'fire ' them without following procedure BUT

you can mitigate your severance costs by liquidating them regularly

my suggestion is only to reduce a future liability, not to try and get rid of an employee

sorry if that wasn't clear.

want to fire with no penalty?
file 3 strikes at the Ministry and you're off the hook

I belive you'll still have to pay the severance. My wife is paying severance on one employee today, after numerous warnings and official letters to the labour ministry. I predict she will still think she's being treated unfairly.
 

william webster

Platinum
Jan 16, 2009
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Bob
if you file with the Ministry... 3 infractions.... that is considered 'cause' and no severance is due (they tell me)

an argument..... siempre....