NOVEMBER 18, 2020

Necessity and Urgency Decree No. 891/2020: prohibition to dismiss without cause and to dismiss and suspend for lack or reduction of work – 60 days extension.

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Labor & Social Security Law Department Report | Necessity and Urgency Decree No. 891/2020: prohibition to dismiss without cause and to dismiss and suspend for lack or reduction of work – 60 days extension

Dear Sir or Madam,

Decree No. 891/2020 (the “DNU”), published in the Official Gazette on November 16th, 2020, extends for 60 days the prohibition to dismiss without cause and to dismiss and suspend for lack or reduction of work and force majeure. The date until which the prohibition will be in force is January 24th. 2021.

(i) The suspensions under the terms of Section 223 bis of the Employment Contract Law are exempt from this prohibition.

(ii) The dismissals and suspensions in violation of the provisions of the DNU shall not produce any effect, and the existing labor relationships and their current conditions shall remain in force.

(iii) The prohibition set forth in the DNU will not be applicable to those engagements that took place after the effective date.

Should you require any further information on this matter, please do not hesitate to contact us.

Sincerely,

Alvaro J. Galli
Santiago H. Taboada