How the Labor Reform affects me: unfair dismissal

The objective expressed in the new Labor Reform "is to guarantee both the flexibility of employers in the management of the company's human resources, and the safety of workers in employment." The reforms adopted entered into force as of February 12, 2012, however, it is currently unknown which of these measures will be confirmed, deleted or modified in parliamentary procedure. Because we want you to be well informed, we present how the Labor Reform affects you regarding unfair dismissal .

Steps to follow:

one

The compensation for unfair dismissal in the new Labor Reform becomes 33 days of salary per year of service, with a limit of 24 monthly payments, for all contracts signed as of February 12, 2012.

two

The compensation for unfair dismissal for the contracts in force on February 12, 2012, shall be calculated according to a double calculation. Up to date February 11, 2012 at the rate of 45 days of salary for years of service, with a cap of 42 monthly payments, and from February 12, 2012 until the date of dismissal, at a rate of 33 days of salary per year. The compensation for unfair dismissal may not exceed 720 days of salary, unless the calculation of compensation for the period prior to the entry into force of the Royal Decree Law results in a higher number of days, in which case it will be applied as an amount maximum indemnity, without exceeding 42 monthly payments in any case. Thus, no more than 42 months or more than 720 days of compensation.

3

The Labor Reform of 2012 changes the burden of proof in the origin or not the dismissal corresponds to the worker: instead of being the employer who shows that the dismissal is appropriate, it must be the worker who demonstrates that it is inappropriate.

4

Judicial consignment to limit processing salaries (salary not received from dismissal until there is a ruling). The dismissal known as "express dismissal" disappears. When the dismissal is declared by the Court as inadmissible and the company opts for compensation, the date of effects of the dismissal will be that of the effective termination of the employment relationship, without the payment of processing fees in that case.

5

In the cases of null dismissal or dismissal declared as unjustified in which the company opts for readmission, the payment of processing salaries will proceed.

6

Since we would like to encourage you and tell us your opinion or your experience on this subject.

7

In addition, this new reform also proposes changes in collective dismissals, in the appropriate dismissal and in working conditions in general.