Management wants to get rid of dismissal payments

Dolores

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Cesantia-Diario-Libre-1024x677.png


The term “cesantia” is, in the context of Dominican labor laws, one of the thorniest issues on the table every time that new talks regarding wage increases are undertaken. The word literally translates to “end to employment” but in the Dominican context, it is much more. In reality, it means a payment to a worker who is being fired, dismissed, or even retired. It consists, in the simplest of terms, of one month’s salary for every year or part of a year of employment.

A five-year worker would receive five months of his salary, plus two weeks of salary, upon dismissal.

Of course, management wants to get rid of this sort of compensation, but the Dominican Republic has no unemployment insurance as yet. The payment also compensates for the ridiculously low pension plan retirement levels in place in the Dominican Republic. For many, the severance payments are their real retirement...

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Duece

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Mar 11, 2004
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The article leaves out some key Points. It omitted Navidad in the liquidation formula and forgot to mention that the longer you work for the same employer the higher your liquidation becomes after 5 years and so on the formula changes.
 
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El Hijo de Manolo

It's outrageous, egregious, preposterous!
Dec 10, 2021
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All they have to do is move the 3 month window. The SOP for lazy folks and scammers is to work hard for 3 months then screw over the employer until they get canned.

Another area where employers suffer is a disengaged pregnant woman. The pregnancy sabbatical is far too giving and when they return I think you can't fire them for X amount of time and here they generally planning their grand exit and break no sweat on behalf of the employer
 

El Hijo de Manolo

It's outrageous, egregious, preposterous!
Dec 10, 2021
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The article leaves out some key Points. It omitted Navidad in the liquidation formula and forgot to mention that the longer you work for the same employer the higher your liquidation becomes after 5 years and so on the formula changes.
It doesn't matter. If you're a business owner in DR and this is new iinformation for you, you need to shut it down asap. There's a mindless calculator on the MoT site that is child friendly
 

Manuel01

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Apr 1, 2009
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A lot of employes that are at the same company for several years will do everything to get fired in case they face any kind of "financial emergency" just to get their liquidation $. So you get a lousy worker who does a lot of damage until you finally fire him. Also long time employes got an atitude because they know it finacially hurts you to fire them. If you need unqualified workers; do it the Chinese way : "Hire and Fire" before 3 month. If you need qualified labour, do what i do;
Every year around cristmas i offer them low interest loans at the amount of one salary. Before Cristmas none never ever refused to take it. If they quit by them self i sue them for the money they owe me and if i have to fire them they get shit and still owe me interest of all this prior loans. Yes, sometimes if somebody quits i loose the $ i loaned them but at least nobody behaves bad or makes intentionally damage to get fired and this is worth 10x this $.
 
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JD Jones

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There are, but your need to prove it beyond a reasonable doubt, which, in Dominican, means you'll never have enough proof in the eyes of the MoT mafia
The stories I could tell.

I can tell you It's almost impossible to not pay liquidation, and I've gone through thousands of them.

It's much simpler to tell employees that if they give two weeks notice, you'll pay their liquidation and leave it at that.

The MoT is not on your side.
 

jd426

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Dec 12, 2009
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Blue Collar Town in New Jersey
I know of a few Chinese owned shops here in Santiago who've been operating this way for years.
So if your Place is big enough, it would pay to put a Management layer in between who is the " temp recruiter".
and the "bad guy"
literally make every job a Temp position , and keep it moving .'
(Problem is it probably takes 6 weeks to train some of these people )

My question is .. can you RE -HIRE these same people you just let go before the 3 month is up?
Like the next High Season ?

Or would this be proof of gaming the system and lead to even bigger problems .

just curious .
 

Manuel01

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Apr 1, 2009
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So if your Place is big enough, it would pay to put a Management layer in between who is the " temp recruiter".
and the "bad guy"
literally make every job a Temp position , and keep it moving .'
(Problem is it probably takes 6 weeks to train some of these people )

My question is .. can you RE -HIRE these same people you just let go before the 3 month is up?
Like the next High Season ?

Or would this be proof of gaming the system and lead to even bigger problems .

just curious .
 

Manuel01

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Apr 1, 2009
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Yes, you can Re-hire them after a specific waiting time. I think it is 6 month but not sure about it.
 
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Aug 21, 2007
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If you change their contract, you can pay them liquidation and rehire them right away under the new conditions of the contract.

I have a teacher who did not want to teach summer school and a cleaner who also was a classroom assistant for half the day. The second woman has some problems at home and wants to continue only as a cleaner.

For both of them, I paid their liquidation and they will start up again in August. However the liquidation was only a couple of thousand less than what they would receive if I continued to pay them.

They were happy with that arrangement and I do not have the burden of their liquidation growing each year.
 

Manuel01

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Apr 1, 2009
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It’s all fun and games until an employer gets dragged into the MoT mafia court, in which case, the lawsuit fines can sink a small company
Exactlly ! A Labour Lawyer ones mentioned; A "Gringo Employer" does not even have to show up in Court, so he at least saves the money for the Gas.
 
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MariaRubia

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Jun 25, 2019
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The liquidation pay rule is terrible, it discourages businesses from hiring new employees and from firing the unproductive and lazy ones.

Gosh if everyone who was unproductive and lazy got fired here we'd have 99% unemployment.
 
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MariaRubia

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Jun 25, 2019
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The stories I could tell.

I can tell you It's almost impossible to not pay liquidation, and I've gone through thousands of them.

It's much simpler to tell employees that if they give two weeks notice, you'll pay their liquidation and leave it at that.

The MoT is not on your side.

I second that. Even if someone is sacked for theft I paid their liquidation in full. If not then you end up being screamed at by a lawyer who adds on a huge amount to the claim, and it's all a mess.
 
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CristoRey

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My experience with this nonsense is limited to the call center industry down here.
Wasn't uncommon to hear about people being blacklisted for some of the reasons
mentioned above with the most common being someone busting his/ her ass for the
first 6 months, then showing up to work and doing absolutely nothing with the sole intent
of collecting a nice little severance check when being shown the door. Word spreads fast,
burn up bridges and find yourself begging for another job that pays much less.
 
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