Christmas Pay

[dv8]

you cannot fire and rehire people thus avoiding liquidation pay. there is a law that regulates this. the person could only come back to work after few months break. there is no way to bypass liquidation. even if you catch someone stealing or register infractions they can still sue you. and even if you win you'd still spend money/time on lawyers, courts and so on.

the only way, really, is to pay as low salary as possible so that your costs are low. what can i say, labour law in DR sucks big time and does not encourage legal business practices. there is a reason why over 50% of all employed dominicans are within grey zone: no contract, no taxes, no insurance.

 

[william webster]

BIG misunderstanding here....... nothing new

I am paying the liquidation as prescribed... as many do.... on a yearly basis to avoid a HUGE hit at the end

no skullduggery here.... prudent fiscal management....

They want the $$, I want to pay it.... not accrue it

this is a very normal business procedure here in RD..

I'm not going to explain it further.... straightforward

why do people look to beat a system that cannot be beaten ??

play by the rules people........ I do

 

[dv8]

no, i did not mean that you want to play dirty. i was talking in general terms. the law here is not employer friendly, that's all.

 

[william webster]

that is why its easier to pay the liquidation evry year or every 2 yrs......

less problems

the liquidation money is THEIR money... like a savings account
if they want it, they can call for it..... or I can choose to give it to them as I wish

how amny people actually have employees to do this with??

Bob does..... I do.....

it is a BIG pain ....the law.. but its a serious one

 

[Dolores1]

There is a Supreme Court ruling dated 26 March 2003 that established that the annual liquidation payments were "advances" on eventual severance payments in the case the employer decided to unilaterally end the contract. That ruling seems to be the reason for the continuing of the practice of annual liquidation. The decision came after an employee contested that the payments he had received were liquidation when he never stopped working in the company.

See lengthy explanation about annual liquidation here:
Ley del pasivo laboral - Monografias.com

 

[william webster]

thank you Dolores.....

a legal procedure - it seems

I don't doubt it was challenged........ my people sign off on it....