Labor and Social Security Law Department report | Necessity and Urgency Decree No. 487/2020: extension of the prohibition on dismissals
Dear Sir or Madam,
Necessity and Urgency Decree No. 487/20 (the “DNU”), published in the Official Gazette on May 19th, extends the prohibition on dismissals without cause and dismissals and suspensions for lack or reduction of work and force majeure.
The DNU states the following:
(i) Extend the prohibition of making dismissals without just cause and for the reasons of lack or reduction of work and force majeure for a period of sixty (60) days counted from the expiration of the term established in Decree No. 329/20.
(ii) Extend the prohibition to make suspensions for reasons of force majeure or lack or reduction of work for a period of sixty (60) days, counted from the expiration of the term established in Decree No. 329/20.
(iii) To exempt from said prohibition the suspensions under the terms of section 223 bis of the Labor Contract Law.
(iii) That dismissals and suspensions that are decided in violation of the provisions of the DNU will not produce any effect, maintaining the existing labor relations and their current conditions.
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