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”Labour protection here is insane too. It's not cheap for small and medium companies. And there is a thing that makes it even more complicated for startups: leg
by chrisbennet 8y ago
”Labour protection here is insane too. It's not cheap for small and medium companies. And there is a thing that makes it even more complicated for startups: legally, the owner of the company is in charge of the labor debts even when the company is broken. So, if your company broke, you can't close it until you pay all the labor debts, and if you don't pay, you can lose your home or other assets that belong to you, not to your company;”
This is pretty normal, you need to lay off people before you run out of money to pay them. You don’t gamble with your employees paychecks.
As a business owner, you get the upside if business is going great. The downside is that you, the owner, only get paid if there is money left over after you pay your employees.
- deleted 8y ago[deleted]
- oddx 8y ago> This is pretty normal Can anyone comment how common it is? Isn't normal in Europe? US? Other countries?
- d4mi3n 8y agoI can’t speak for all of the US, but this is California law: a business owner is _personally_ liable for unpaid wages in the event of bankruptcy. The Department of Labor does not take kindly to people or business who cheat their employees out of a rightfully earned paycheck.
- diegoholiveira 8y agoBut I'm not talking about wages. I'm talking about other rigths that an employee has, for example: if you bankrupt and need to fire you employees, you'll be forced to pay a fine of 40% of the FGTS (FGTS it's like a saving account the company is obligated to pay in name of they employees).
- rescbr 8y agoSpeaking as a fellow Brazilian: so account for it beforehand, in the same way you should account for 13th salaries and other "hidden" worker rights, which are liabilities in the accounting sense.
- kikoreis 8y agoYeah, that's how we have always hired, and I don't see a big problem with CLT (the Brazilian employment law), perhaps with the exception of how vacation time and union membership is handled. It's bizarre that the threads on this post seem to straddle "founders are only in it to make money off the back of their employees" and "worker's rights and compensation are onerous" simultaneously.