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 affairs.
The liquidation motivated by the closing of the trade
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 their products, generally at the price of their cost, as a consequence of the bankruptcy of the same, the definitive closure, the transfer, the reforms that the establishment in which it operates undergoes, the end of one season and the beginning of another, such is the usual case of those clothing stores, or any other type of question that motivates this reduction.
Deceptive strategy
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 the action of liquidation as a promotional strategy. That is to say, in their 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 fair competition point of view, obviously, we could question and criticize this action as misleading and unfair to competitors and customers, but of course, they exist and there is still no evidence that someone was doing something from the beginning. legal point of view to stop this action.
End of season clearance
And although it is not right to call it that way, because the most appropriate term would be sales, 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 sales, materialized in huge posters with bright colors, in addition to placing next to they the values up to which the aforementioned settlement 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. In other words, the tax settlement is the expenditure intended to defray the taxes that a taxpayer owes the state and that correspond to a certain period of time. The aforementioned liquidation can be prepared by the taxpayer himself or by the competent authority of the territory in question, which deals with the need for tax collection.
Salary settlement
While, in the field of human resources of 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 monthly remuneration that corresponds to an employee who is working in a dependency relationship will be calculated. This calculation will include the basic salary of the agreement, the legal and conventional additional, the time that has been working in the company, the presenteeism, the prizes and any other type of plausible variable to be taken into account for the aforementioned calculation.
On the other hand, and following in this same employment context, when an employee decides to voluntarily withdraw from a company, or when there is 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 this does not happen, the employee may initiate a cause in labor justice against his employer to force him to pay his settlement.
