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The prohibition of dismissals without cause is extended for another 60 days

2020-07-23T21:06:24.096Z


Despite the measure, job losses are accentuated amid the economic retraction due to quarantine.Ismael Bermúdez 07/23/2020 - 11:37 Clarín.com Economy Economy Based on the fact that the economic retraction continues to affect employment, the Government decided to extend for another 60 days the  prohibition on making suspensions and dismissals without just cause, for lack or reduction of work and force majeure. The only exceptions, in the case of suspensions, are those agreed between employe...


Ismael Bermúdez

07/23/2020 - 11:37

  • Clarín.com
  • Economy
  • Economy

Based on the fact that the economic retraction continues to affect employment, the Government decided to extend for another 60 days the  prohibition on making suspensions and dismissals without just cause, for lack or reduction of work and force majeure. The only exceptions, in the case of suspensions, are those agreed between employers and workers or union representation. The DNU that will extend the validity of the average is signed by President Alberto Fernández, sources from the Ministry of Labor confirmed to Clarín.

The prohibition of suspensions and dismissals was initially decreed on March 31 for 60 days through DNU 329/2020 and then extended another 60 days through DNU 487/2020. Now another DNU extends it another 60 days, until the end of September. 

Although official data marks a significant drop in formal salaried employment , in the Government they consider that this loss of jobs would be greater if these measures were not adopted and double compensation for unfair dismissal was not in force. They attribute the drop in employment to companies not replacing staff who quit or retire and to " voluntary retirements ".

Data from the Ministry of Labor show that in April - the first full month of quarantine - 186,000 fewer workers were registered in relation to March, "the highest monthly fall since the beginning of the series in January 2012".

At the same time, in the framework of the suspensions agreed between the CGT and the Industrial Union (UIA) for the sectors affected by the quarantine, 60,000 companies suspended 715,000 workers - 12% of the salaried workers in the private sector - with a reduction of up to 25% on wages.

As Clarín stated , the greatest loss of jobs occurred in construction, where double compensation is not applied because workers have no compensation. There is a “labor cessation fund” that workers withdraw when they stop working according to the amount they have accumulated. Meanwhile, the DNU that prohibits dismissals does apply to construction workers, but in the labor portfolio they admitted that "there is a legal controversy that must be resolved by Justice."

The DNUs that prohibit dismissals cover all dependent workers and do not exclude those with special regimes, such as construction or workers in private homes.

For this reason, the Justice approved several precautionary measures (Córdoba, Mendoza, Rio Negro) stating "that workers in the construction industry governed by Law 22,250 are also covered by the temporary own stability protection established by DNU 329 / 2020 ". And they order " the nullity of the termination of the labor bond provided by the construction companies" and "the reinstatement of the worker to his tasks and under the conditions that were provided."

AQ

Source: clarin

All business articles on 2020-07-23

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