Necessity and Urgency Decree No. 761/2020
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Labor & Social Security Law Department Report | Necessity and Urgency Decree No. 761/2020
Dear Sir or Madam,
On September 23, 2020 the Necessity and Urgency Decree No. 761/20 (“DNU”) was published in the Official Gazette (“BO”). Such DNU extends the prohibition on dismissals without cause and dismissals and suspensions on grounds of lack or reduction of work and force majeure.
The said DNU establishes:
(i) To extend 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. 624/20.
(ii) To extend 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. 624/20. This prohibition shall not reach concerted suspensions under the terms of Section 223 bis of the Labor 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,
Alvaro J. Galli
Santiago Taboada
Rodrigo Mora