When we fired the 'farm worker' that we had last August, we went to the Labor Dept with him to calculate liquidation. The woman we met with said that because we do not sell anything grown on our property that he was not entitled to any liquidation, only the prorated vacation and Christmas pay. He raised a huge fuss, but the woman would not back down. He refused to accept the liquidation and sign the document she prepared. We offered him more money, and he still said no, because 'someone' told him we probably owed him 80,000 pesos or more. The labor lady was angry that we offered him anything more than she said, and we all ended up just leaving.
A few days later someone got it through his head to take what we were offering because it was a lot more than Labor said we had to pay. We paid him, he signed the document, and that was the end of the matter.
To the OP, be sure that you get a signature if you choose to liquidate annually.
PS. Just to clarify, because we use whatever we grow ourselves, or give it away, he was considered a domestic worker. If we sold anything at all, we would have owed him full liquidation.