Termination Bans And Other Employment Measures Are Extended

• Published date: 23 February 2021
• Subject Matter: Employment and HR, Coronavirus (COVID-19), Employee Rights/ Labour Relations, Employment and Workforce Wellbeing, Litigation, Contracts and Force Majeure
• Law Firm: Marval O'Farrell & Mairal
• Author: Mr Rodrigo Sola Torino and Walter Ma'ko

On January 23, Executive Decree No. 39/2021 was published in the Official Gazette, which orders:

• Extending the state of exception in occupational matters until December 31, 2021.

• Extending for 90 calendar days the ban against dismissals without just cause and dismissals and suspensions grounded on reduced or decreased workloads and force majeure.

• Extending the duplication of severance payments until December 31, 2021.

• Extending the presumption that the COVID-19 infection is an occupational disease.

With respect to dismissals without just cause, the Decree maintains as an exception the ban against suspensions pursuant to Section 223 bis of the Labor Contract Law. Dismissals and suspensions in breach of the Decree will be null and void, have no legal effect, and maintain in force any existing labor relations and their current conditions.

On the duplication of severance pay, in cases of uncontested dismissals...