End of the road for the Labor Emergency Regime
As of Decree 886/2021, the Government provided for the gradual reduction of the duplication of severance payment that was originally established in December 2019.
Thus, the emergency increases in severance payments will have the following magnitudes:
- Between January 1st and February 28th, 2022, the increase will be 75%;
- Between March 1st and April 30th, 2022, the increase will be 50%;
- Between May 1st and June 30th, 2022, the increase will be 25%.
As of July 1st, 2022, the labor emergency regime will have expired, and there will no longer be any increase in severance payments beyond those legally established, unless new decrees are issued in the future extending or modifying the dates provided.
As for the lay-off ban on, it shall be in force until December 31st, 2021. Following that day ‑In the event that no decree extends it- employers would be able to dismiss their employees without cause or temporary suspend them due to force majeure or workload reduction.
If you have any doubts related to labor law issues from the employer’s perspective, please do not hesitate to contact us at [email protected].