What Is Cesantia?

eastcoastmike

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Jul 18, 2004
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On the home page of the labor dept there is a question under the liquidation page that asks "cesantia si o no".The answer greatly affects the amount of liquidation pay.Help!
 
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apostropheman

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i think they're asking if the employment is ending or has ended.
 

Rocky

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Apr 4, 2002
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i think they're asking if the employment is ending or has ended.
I believe you are correct.
It would be better to have a legal expert answer that question.
But it does sound like they're asking if the person quit or was fired, and that certainly would make a big difference in the payment to be made.
 

MrMike

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Mar 2, 2003
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Cesantia is basically severance. You owe it in case of at-will termination but not if the employee quits.

Vacation and Christmas bonus you have to pay either way, and "preaviso" must be paid in the case of at-will termination without giving prior notice to your employee that his employement wil end on such-and-such a date.
 
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apostropheman

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that makes better sense. IIRC you only pay liquidation when someone is no longer working for you...correct?
 

MrMike

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Yes, if you dismiss someone or they quit you have 10 days to pay them their liquidation.

If they quit they just get a prorated christmas bonus and a prorated vacation pay if they haven't already had their vacation pay.

If you fire them and they have been with you for over 3 months then you have to pay that plus severance and "pre-aviso" the amount depends on how much they make and how long they were with you.