Typical settlement for someone being made redundant

[sebas]

Hi,

I've got an employee that's been working for me "en negro" remotely in BA. I'm now thinking about making him redundant.

What would be a typical redundancy agreement. I'm based in the UK.

Is there a typical rule of thumb e.g. 1 months salary for each year of employment or something similar?

 

[jblaze5779]

1 month for each year

 

[lunar]

Is there a typical rule of thumb e.g. 1 months salary for each year of employment or something similar?

1. For people who are officially employed, it changed in December for 2 months for each year.
2. We are now in a suspension period. Nobody can be fired at all.

 

[sebas]

1. For people who are officially employed, it changed in December for 2 months for each year.

Is that retroactive? Or from December 2019 onwards?

 

[antipodean]

Until June (at least) there is double indemnity making settlement costs skyrocket. At the end it can easily cost almost as much as one YEAR worth of salary for someone who has been with the company a little less than a year - as you probably also need to liquidate leave allowances, viaticas y comidas etc on top of the notice period and indemnity.

It is based on the highest monthly salary paid during the year, not the amount actually paid (assuming there were adjustments)

As said there is a freeze on firing people so if the employee wants to make a claim, the courts will be sympathetic and you open a big can of worms for yourself. Best just to agree on something the employee would find acceptable.

 

[sebas]

Crikey they're not exactly encouraging people to set up businesses and employee people officially are they.

 

[antipodean]

Crikey they're not exactly encouraging people to set up businesses and employee people officially are they.

Absolutely not. Oh and if you close your business or go bankrupt, your employees can come after your personal property. If you hire them you pretty much marry them. Lucky your employee cannot get pregnant as that would at least double your settlement.

Largely for this reason Argentina always ranks alongside countries like Yemen and Nigeria in ease of doing business indexes. Beacons of success...

 

[Somewhereinba]

Absolutely not. Oh and if you close your business or go bankrupt, your employees can come after your personal property. If you hire them you pretty much marry them. Lucky your employee cannot get pregnant as that would at least double your settlement.

Largely for this reason Argentina always ranks alongside countries like Yemen and Nigeria in ease of doing business indexes. Beacons of success...

Hahaha - no wonder its so corrupt and dirty when the laws exist purely to be manipulated in favour of the employee. Do they not realise without a business there are no employees? Hence why such a large amount of people are employees by the Government.

 

[sebas]

Hahaha - no wonder its so corrupt and dirty when the laws exist purely to be manipulated in favour of the employee. Do they not realise without a business there are no employees? Hence why such a large amount of people are employees by the Government.

This! Seems like the children are in charge of the sweet shop. Argentina's not the only case (its getting pretty bad here in the UK) but is a pretty egregious example.

 

[antipodean]

Hence why such a large amount of people are employees by the Government.

And now almost all private businesses are also dependant on the government to survive - "at least" they will pay 50% of salaries during the crisis while turnover is 0-5% of what it should be. But for most employers that won't be enough as there simply is not enough cash to cover the remaining portion for what will be a very slow and long crisis globally over the next years. And for the first time, this is a global crisis that is impacting Argentina which is a concept leadership does not really grasp. And with no possibility of firing or furloughing employees.... Oh well, it's free capital for the state once they are locked out of international money markets and commodity prices are at rock bottom.

Fun fact, the legal term to describe an "employee" in Argentina is "dependant relationship". Argentina is all about making people dependent, much like a mafia.