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Severance pay

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Severance pay Empty Severance pay

Post by CanuckBob on Thu Aug 13, 2020 9:55 am

Does anyone recall the formula for severance pay of a maid or gardener?

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Post by slainte39 on Thu Aug 13, 2020 10:25 am

It´s kind of complicated if you want to do it exactly right, unless you are doing it frequently.  You can always make an offer and have the employee sign a finiquito for any amount. If you have someone in the real estate business that you know, they probably have someone that does that kind of work often.

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Post by mudgirl on Thu Aug 13, 2020 8:54 pm

The information I have written down is 3 months salary +20 days for each year worked. But that is from several years ago, so it may have changed.

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Post by ferret on Thu Aug 13, 2020 9:15 pm

Get it done professionally by a Lawyer. The legal letterhead goes a long way in preventing any further problems.
Basically, you need to calculate the DAILY rate first in the same manner that you would calculate an Aguinaldo.
eg. If the employee receives a flat rate of 350 pesos a week for whatever... divide that by SEVEN to get the daily rate... in this example the "daily" rate is 50 pesos.
The finiquito starts by multiplying the "daily rate" x ninety (days). Then add the antiquity pay + any vacation pay owing + the prorated aguinaldo.
I hope you have signed receipts for each pay, vacation pay and aguinaldo paid. It makes it far easier when you have proof.
Spencer can do this for you.
And the information above is from a crackerjack accountant in Bucerias who specialized in the Federal Labour Law.


Last edited by ferret on Thu Aug 13, 2020 9:28 pm; edited 1 time in total
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Post by artsnob on Thu Aug 13, 2020 9:19 pm

Go down the street and see Miss Bateman, it is one of her office specialty

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Post by slainte39 on Thu Aug 13, 2020 10:30 pm

Your main goal is a signed finiquito (con testigos), that ends all further discussion or action.

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Post by CanuckBob on Fri Aug 14, 2020 7:41 am

Yes, of course I would get a lawyer to write it all up.

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Post by Bearded Beemer on Fri Aug 14, 2020 10:12 am

Are you hiring? I might be up for a change of careers(and scenery)!!!
Plus I do have a lot of experience with smoked salmon!!
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Post by Cincy on Fri Aug 14, 2020 11:30 am

Never knew Rollybrook but I still use his formulas!

https://rollybrook.com/employee-pay.htm

The last section deals with termination pay.

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Post by ferret on Fri Aug 14, 2020 12:12 pm

Which is exactly what I wrote. However, in the very thick manual of the Labour Law, it specifies in writing, the daily rate times 90 days NOT three months... and also states that the aguinaldo is 15 times the daily rate.

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Post by sampati on Sat Aug 15, 2020 4:54 am

For a few pesos you can get Azusena Bateman to draw up the severence papers.  Believe me, it is well worth the price, don't play around with this or you could lose everything like Diana and her restaurant did a few years back.  Just my 2 cents worth.

Here is what I remember happened to Diana and her restaurant:

I cannot find the post about how to fire a maid but a few years back I recounted the plight of a restaurant owner in Ajijic who lost her entire business and all of her employees lost their jobs. Following is the account:

If I remember correctly the former owner of Adelitas, then called Dianes, had a problem with an employee who did not show up for work and could not be contacted by the restaurant owner to find out if she was coming back. It seems like some several years later Diane was contacted by the labor board and taken to court as the employee claimed she was unjustly fired. End result was that Diane was ordered to pay back pay to the employee to the tune of some Twenty Five Thousand dollars. Diane had to close her restaurant and she moved back to the States. Not only did she lose her restaurant, all of her employees lost their jobs when when she closed. Maybe someone who remembers this happening can set the record straight of what happened as it was quite awhile ago and I may have some of my facts wrong. Be careful with employees, the labor laws in Mexico favor the employees big time.
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Post by slainte39 on Sat Aug 15, 2020 10:08 am

slainte39 wrote:Your main goal is a signed finiquito (con testigos), that ends all further discussion or action.

Due to the last post, I´ll repeat my earlier post.
If the employee can´t be found, get an attorney to draw up a letter to that effect, with witnesses, and file it with the court.

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Post by lakeside7 on Sun Aug 16, 2020 9:51 am

sampati wrote:For a few pesos you can get Azusena Bateman to draw up the severence papers.  Believe me, it is well worth the price, don't play around with this or you could lose everything like Diana and her restaurant did a few years back.  Just my 2 cents worth.

Here is what I remember happened to Diana and her restaurant:

I cannot find the post about how to fire a maid but a few years back I recounted the plight of a restaurant owner in Ajijic who lost her entire business and all of her employees lost their jobs. Following is the account:

If I remember correctly the former owner of Adelitas, then called Dianes, had a problem with an employee who did not show up for work and could not be contacted by the restaurant owner to find out if she was coming back. It seems like some several years later Diane was contacted by the labor board and taken to court as the employee claimed she was unjustly fired. End result was that Diane was ordered to pay back pay to the employee to the tune of some Twenty Five Thousand dollars. Diane had to close her restaurant and she moved back to the States. Not only did she lose her restaurant, all of her employees lost their jobs when when she closed. Maybe someone who remembers this happening can set the record straight of what happened as it was quite awhile ago and I may have some of my facts wrong. Be careful with employees, the labor laws in Mexico favor the employees big time.

As I recall she first had family tragedy as father died then the mother was killed in an accident crossing the highway in Reberas. Diana was OK for food preparation but not a good business person and the restaurant was only marginally profitable and I guess she only paid her employees what she thought she could get away with. Then as you say bad relations with her staff. I think she also had an MX boyfriend only added complexity to her life.
She did not own that property . There was place to construct casitas in the back of the property and I had ideas to build a mini coto, but my attorney looked at the property deed he advised me not to proceed. On reflection I think it would have been ok to buy with proper legal guidance

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