Concept in Definition ABC

In general terms, by liquidation refers to the action and the effect of liquidating, which can be made effective in the formal adjustment of an account, by paying the same in full or by putting an end to a state of things.

The liquidation motivated by the closing of the Commerce

At the request of a trade or business, liquidation will be called the moment in which they will proceed to carry out a retail sale with a significant reduction in the prices of its products, generally at the cost of the same, as a result of its bankruptcy, its final closure, transfer, the reforms it undergoes the establishment in which it works, the end of one season and the beginning of another, such is the usual case of those clothing stores, or any other type of issue that motivates this reduction.

Strategy misleading

At this point it is important to stop to comment that in recent times it has become a common practice that many businesses, with the mission of increasing their declining sales, use as a promotional strategy the action of the settlement. That is to say, in their shop windows, they conspicuously inform consumers that they are liquidating because of the imminent closure of the premises. People then seduced by finding affordable offers and values ​​visit the store and purchase the offers. But of course, weeks, months and years go by and the trade is still open and with no prospect of being closed.

From an ethical and competence clean, obviously, that we could question and criticize this action as misleading and unfair to competitors and clients, but of course, they exist and there is still no evidence that someone was doing something from a legal point of view to stop this action.

End of season clearance

And although it is not right that it is called that, because the most appropriate term would be the sale, in many parts of the world, the word liquidation is used to refer to that period, generally at the end of the seasons, in which stores, especially clothing, accessories, among others, offer a reduction in their prices.

It is very common to see that at this time, at the end of summer or winter, the windows of most shops announce to their potential buyers that they are offering liquidations, materialized in huge posters with striking colors, in addition to placing next to them the values ​​up to which the aforementioned liquidation reaches, for example up to 50 %.

Tax settlement

On the other hand and In a tax context, liquidation will be called the act by which the tax that a specific taxpayer must pay is quantified. That is, the tax settlement is the dispensing destined to defray the taxes that a taxpayer owes to the state and that correspond to a certain period of time. The aforementioned liquidation can be prepared by the taxpayer himself or by the authority competent of territory in question, which deals with the need for tax collection.

Salary settlement

While, in the field of human Resourcesof a company, the use of the liquidation term is also very common, since for settlement of assets or salary, refers to the process through which the remuneration monthly that corresponds to an employee who is working in a dependency relationship. This calculation will include the basic salary of the agreement, the legal and conventional additional, the time you have been working in the company, the presentism, the awards and any other type of plausible variable to be taken into account for the aforementioned calculation.

On the other hand, and continuing in this same employment context, when an employee decides to voluntarily withdraw from a company, or when In the event of a dismissal, the person in charge of the treasury area must pay the employee in question his final settlement, which may include the time worked until his resignation and dismissal, a proportionate of the benefits and an amount that will be in relation to the time he is working there. All these points and the corresponding ones must be paid in accordance with the worker in the times and forms provided and in the event that does not happen, the employee may initiate a case in labor justice against his employer to force him to pay his settlement.