The mega decree reduces severance pay and applies regardless of the worker’s seniority

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The DNU reduces the wage base by compensation calculation for dismissal without just cause. “It is expressly clarified that the incidence of additional annual salary (bonus) and the concepts of semi-annual and/or annual payment, such as bonuses, tips, are not included in this basis,” he said Clarionbusiness consultant Marcelo Aquino.

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In relation to workers who have entered a workplace before the DNU and accumulated years of seniority, Aquino pointed out that they resigned without just cause The provisions of the DNU apply since the dismissal occurred during the validity of the DNU. “The legal norm comes into force at the moment of termination of the employment relationship”accurate.

It is assumed that this point of the DNU will open to huge litigation. Matías Cremonte, president of the Latin American Association of Labor Lawyers (ALAL) maintains that “starting from the validity of the DNU, the employer who decides to fire someone will pay a lower compensation than would have been due if the dismissal had occurred earlier. This will obviously generate arguments and the fired people will have to resort to labor justice to claim the difference. And they should agree with them, because all those who started working before the entry into force of the DNU have the right to consider their employment contract integrated with that rights before modificationthat is, they are acquired rights”.

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More drastic, Cynthia Benzion, head of the Labor Lawyers Association, states that the dismissed worker should send a letter asking that the laws previous to the DNU be applied to him because they are unconstitutional.

Benzion added that the DNU repeals law 25.323 which in Article 2 establishes that when the employer does not pay the dismissal compensation and forces the worker to initiate a lawsuit, the compensation will be increased by 50%. “This rule aims to ensure that the debtor employer respects its employment obligations without the need to resort to litigation. Its repeal will increase litigation.”

Aquino added that the Justice criterion applies as the salary threshold, according to which the basic amount of compensation can never be less than 67% of the worker’s best, normal and usual monthly salary. With a novelty: “by establishing a special indemnity for discrimination, the justice criterion of declaring the dismissal null and void and forcing the employer to reinstate the alleged discriminated worker in the workplace”.

For its part, for Cremonte, the DNU “strikes hard at the principles of labor law, weakening the structure of contractual labor law. For example, until today, the fact of providing services to someone implies the presumption of the existence of an employment relationship, regardless of the form given to the contract. With the reform this presumption will cease to exist and, for example, the work of “monotributistas” will be considered a civil and non-working relationship. ..

Source: Clarin

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