Understanding Employment Contract Suspension and Termination
Employment Contract Suspension
Involuntary Suspension: Economic, Technical Reasons
The employer must justify such cases before the labor authority. If it is reasonable, the suspension will be authorized.
Temporary Force Majeure
The company may suspend employment contracts regardless of the number of workers due to a temporary force majeure. This is a situation that the company failed to anticipate or prevent.
Temporary Disability
This is the situation where a worker is unable to work due to an accident or illness.
Maternity Leave
In case of childbirth, adoption, or foster care of children under 6 years old or with disabilities, the suspension will be a maximum of 16 weeks. During pregnancy, if working conditions cannot be adapted to ensure safety, suspension of work may be granted.
Paternity Leave
Paternity leave consists of 13 consecutive days in the case of birth, adoption, or fostering, expandable by two days for each child after the second.
Imprisonment of the Worker
The contract is suspended while the worker is imprisoned. If the sentence is completed, the company will reinstate the worker. If the worker is found guilty, the company may terminate the contract.
Legal Closure
Closure may be ordered by the authorities when a serious risk to people or property is detected.
Right to Strike
The contract is suspended for as long as the strike lasts, with the suspension of the right to wages.
Exercise of Public Office
Suspension is granted if the exercise of public office makes it impossible to carry out routine work.
Unpaid Leave
This is a suspension of the employment contract requested by the employee. Its duration cannot be less than 4 months nor more than 5 years.
Return to Active Status
An order for appointment or election to public office precludes attendance at work. The employee must return to work within one month after leaving office.
Leave for the Care of Children or Family
There is no specific age requirement. The maximum duration is 3 years.
Termination of Employment Contract
Settlement
A document that confirms that debts between the employee and employer have been settled and that the employment relationship has ended.
Termination of Temporary Contracts
These are contracts with a fixed term. If the contract is for more than one year, the employer must provide 15 days’ notice.
Breaches by the Employer
These include substantial changes in working conditions, continued failure or delay in payment of wages, and any other serious breach by the employer, such as moral or sexual harassment.
Individual Dismissal for Objective Reasons
- Incompetence of the worker, known after placement in the company
- Lack of adaptation of the worker to the job
- Need to amortize a job for economic reasons
- Lack of attendance at work
- Termination of contracts of indefinite duration
Procedure for Individual Dismissal for Objective Reasons
The employee must receive written notice stating the reason. Worker’s compensation and a notice period of 30 days with six hours of paid leave per week must be provided.
Effects of Dismissal
Depending on whether the dismissal is deemed fair, unfair, or null, the worker may be reinstated or dismissed.
Disciplinary Dismissal
Reasons include:
- Repeated and unjustified absences or tardiness
- Indiscipline and disobedience at work
- Verbal or physical abuse of the employer
- Breach of good faith or breach of trust
- Voluntary reduction in work performance
- Drunkenness or drug abuse
- Harassment based on ethnicity or religion
Disciplinary Dismissal Procedure
A warning letter must be issued, including the facts that motivate the dismissal and the effective date.
Effects of Disciplinary Dismissal
A conciliation request must be made within 20 working days. The labor authorities will intervene within 15 days. If no agreement is reached, the worker can file a complaint with the Labor Court. The judge will issue a ruling, deeming the dismissal null, appropriate, or inappropriate.
Collective Dismissal
Often caused by economic, technical, organizational, or production reasons, as well as force majeure.
Procedure for Collective Redundancies
The company must simultaneously communicate its intention to the workers and the labor authorities. The negotiation period should last at least 15 days. If an agreement is reached, it is communicated to the labor authority to authorize the dismissal within 15 days.
Effects of Collective Redundancies
Workers are entitled to an allowance of 20 days’ pay per year of service, up to a maximum of 12 months.