Employment Contracts: Modifications, Suspensions & Terminations

Posted on Oct 30, 2024 in Law & Jurisprudence

1. Employment Contract Modifications

This section details modifications to agreed-upon employment terms (workplace, schedule, etc.).

1.1 Work Mobility

Work mobility occurs when the employer alters the initially agreed-upon job duties or location.

Functional Mobility

This involves changes to the employee’s job responsibilities.

  • Limits: Changes must respect worker dignity (no discrimination) and adhere to wage laws. Maintain original wages if moved to a lower-grade role.
  • Conditions: Within the same professional category, mobility is justifiable. Between categories, only for technical or organizational reasons, after consultation with worker representatives. For lower categories, only due to unforeseen circumstances. If a higher category lasts over six months in one year or eight months in two years, a raise can be claimed. Other cases require mutual agreement or collective bargaining.

Geographical Mobility

This involves changes to the employee’s work location.

Transfer

A permanent change of work center and residence. Requires economic, technical, organizational, or production justification. 30 days’ minimum notice.

  • Options: Accept with compensation; appeal to labor court; terminate contract with 20 days’ salary per year worked (up to 12 months).
Displacement

A temporary change of work location without a change of residence. Requires economic, technical, organizational, or production justification. Sufficient notice (minimum five days for changes exceeding three months).

  • Options: Accept with compensation for travel and per diems (plus four days of paid leave for every three months if exceeding three months); appeal to labor court; terminate contract (same as transfer) only if displacement exceeds 12 months in three years.

1.2 Substantial Modifications

These are fundamental changes to employment conditions that significantly and demonstrably impact the employee. According to Article 41, this includes working hours, schedule, shift system, pay system, work system, individual/collective contracts.

  • Requires economic, technical, organizational, or production justification.
  • Options: If detrimental (employee must prove), for changes in time, schedule, distribution, or shift system: terminate contract with 20 days’ salary per year worked (up to nine months); file a complaint with the labor court (if unjustified, entitled to restoration of initial conditions). For other changes: file a complaint with the labor court.

2. Contract Suspension: Causes and Effects

Contract suspension occurs when contractual obligations are interrupted, and the worker does not work or get paid. The contract remains valid.

2.1 Causes

  • Mutual agreement
  • Causes specified in the contract
  • Temporary disability (illness or accident)
  • Maternity/Paternity/Adoption/Foster care leave
  • Public office/Union representation
  • Deprivation of liberty (without conviction)
  • Disciplinary suspension
  • Exercise of legal rights
  • Legal strike
  • Domestic violence victim
  • Force majeure (with labor administration authorization)

2.2 Effects

  • Suspension of work and pay obligations
  • Right to return to the reserved job

2.3 Leave of Absence

A special case of suspension where the job is NOT always reserved.

Types of Leave

Forced Leave
  • Cause: Public office or union duties
  • Duration: Tenure duration
  • Effects: Counts towards seniority; job reserved if exercised within one month of termination of office
Voluntary Leave
  • Cause: Employee’s need
  • Duration: 4 months to 5 years (after one year in the company)
  • Effects: Doesn’t count towards seniority; right of first refusal for similar vacancies
Specific Care Leave
  • Cause: Childcare (up to 3 years) or relative care (up to 2 years)
  • Effects: Counts towards seniority; job reserved for the first year, then equivalent rank

3. Contract Termination: Causes

  1. Mutual agreement
  2. Changes in the contract
  3. Expiration of agreed time or work completion
  4. Resignation (without justification or notice)
  5. Abandonment (unannounced absence with intent to terminate)
  6. Serious employer breach (e.g., continuous non-payment of wages)
  7. Death, retirement, or permanent disability of the worker
  8. Gender violence cases
  9. Employer’s death, retirement, or disability (unless heirs continue the business)
  10. Dismissal

Note: Resignation or abandonment disqualifies employees from unemployment benefits. Serious employer breach entitles employees to 45 days’ compensation. Employers can claim damages for abandonment.