Fabio,
I was recently told that the practice of liquidating employees every year so that the cost is spread over a period of years rather than paid by the employer in one large lump sum was illegal. I was also told that the present government is actively discouraging this practice because it means the employee who is truly liquidated has very little to live on because the amount of liquidation pay he receives is very small.
Is it true the practice is illegal? What are the risks of continuing the practice? Is it possible, for example, that the government might require payment of the full entitlement at the time of actual liquidation because the money paid in installments was paid illegally?
Thanks,
Ken
I was recently told that the practice of liquidating employees every year so that the cost is spread over a period of years rather than paid by the employer in one large lump sum was illegal. I was also told that the present government is actively discouraging this practice because it means the employee who is truly liquidated has very little to live on because the amount of liquidation pay he receives is very small.
Is it true the practice is illegal? What are the risks of continuing the practice? Is it possible, for example, that the government might require payment of the full entitlement at the time of actual liquidation because the money paid in installments was paid illegally?
Thanks,
Ken