Understanding Labor Law: Principles, Subjects, and Key Concepts
Contents of Labor Law
Labor law encompasses two main aspects: the regulatory or legislative order (substantive law) and the procedural aspects of employment law.
1. Substantive Law:
a) The substantive rules designed to protect subordinate workers, relating to labor standards in individual employment contracts, and the rights and obligations of the parties involved.
2. Procedural Law:
Oversight in this respect can be distinguished into:
- An administrative stage, managed by the Department of Labor through the Provincial Labor Inspectorate.
- A jurisdictional phase, handled by the Courts of Free Labor.
Basic Principles of Labor Law
1. Protective Principle:
Grounded in the inherent inequality between parties in an employment relationship, providing special protection to the worker. Key manifestations include:
- a) In dubio pro operario: In case of doubt, the interpretation most favorable to the worker prevails.
- b) Rule of the more favorable standard: When multiple standards apply, the one most beneficial to the worker is chosen.
- c) Rule of the most beneficial condition: When implementing a new labor standard, the most advantageous one for the worker is applied.
2. Principle of Inalienability:
It is legally impossible to voluntarily waive rights granted by Labor Law.
3. Principle of Continuity:
The employment relationship is not instantaneous but extends over time. Manifestations include:
- a) Preference for indefinite-term contracts.
- b) Principle of business continuity (Art. 4, inc. 2).
- c) Employers cannot unilaterally terminate a contract without a legal reason.
4. Principle of Primacy of Reality:
In disagreements, the actual facts prevail over what is stated in documents or agreements.
5. Principle of Good Faith:
Contracts must be honored in good faith. Parties must fulfill their obligations, not only material but also ethical, and failure to do so can result in liability.
6. Principle of Non-Discrimination:
Workers are protected from arbitrary discrimination in access to work and in the development of the employment relationship.
7. Principle of Gratuity:
Given that the worker is the economically weaker party, proceedings before courts and administrative bodies like the Labor Inspectorate are free.
Labor Law Subjects
Labor law subjects are individuals or legal entities directly or indirectly involved in the employment relationship.
Individual Work Subjects
1. The Worker:
“Every individual who provides personal, material, and intellectual services, dependent on and subordinate to an employer under an employment contract.”
Key aspects:
- Must be a natural person.
- Services must be provided personally.
- Subordination and dependency in service provision.
- Services can be manual or intellectual, broadening the scope of Labor Law.
- Existence of an employment contract (not necessarily written).
Classes of Workers
- a) Ordinary workers: Governed by the Labor Code.
- b) Exclusive or high-trust employees: Special regime with limited job security.
- c) Workers with graduated job security: Special protection against dismissal without judicial authorization.
- d) Casual or temporary workers: Contracted for specific tasks or seasons.
2. The Employer:
“Every individual who uses the services of one or more persons under an employment contract.”
Key aspects:
- Can be a natural or legal person.
- Utilizes the employee’s personal services.
- Holds a position of “superiority” over the employee.
Collective Subjects
Collective subjects are institutions or intermediary bodies involved directly or indirectly in employment.
1. The Company:
“Any organization of personal, tangible, or intangible assets, arranged to achieve economic, social, cultural, or charitable goals, endowed with a particular legal individuality.”
Principle of Continuity of the Enterprise:
Protects workers’ rights against potential ownership changes as long as the company continues to operate.
Effects of the Principle:
- a) No alteration in the rights and obligations under individual or collective contracts.
- b) Individual contracts and collective instruments remain valid with new employers.
- c) The third-party purchaser of the company, whether through ownership or possession, assumes the existing labor obligations.