Decree No. 624/2020: extension of the prohibition on dismissals without cause and dismissals and suspensions on grounds of lack or reduction of work and force majeure.
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Labor & Social Security Law Department Report | Decree No. 624/2020: extension of the prohibition on dismissals without cause and dismissals and suspensions on grounds of lack or reduction of work and force majeure
Dear Sir or Madam,
Necessity and Urgency Decree No. 624/2020 (the “DNU”), published in the Official Gazette on July 29, 2020, extends the prohibition on dismissals without cause and dismissals and suspensions on grounds of lack or reduction of work and force majeure.
Said DNU establishes:
(i) Extending the prohibition of dismissing employees without cause and for lack or reduction of work and force majeure reasons for a period of 60 days as from the expiration of the term set forth in Decree No. 487/20.
(ii) Extending the prohibition to suspend employees due to force majeure or lack or reduction of work for a period of 60 days as from the expiration of the term set forth in Decree No. 487/20. This prohibition shall not reach concerted suspensions under the terms of Section 223 bis of the Employment Contract Law.
(iii) That all dismissals and suspensions that are provided in violation of the provisions of the DNU will not produce any effect, so the existing labor relations and their current conditions shall remain in full force and effect.
(iv) That the prohibition provided by the DNU shall not apply to employment contracts executed after its entry into force.
Should you require any further information on this matter, please do not hesitate to contact us.
Sincerely,
Álvaro J. Galli
María Eduarda Noceti
Santiago H. Taboada