Allende & Brea – Estudio Jurídico

This report cannot be considered as legal or any other kind of advice by Allende & Brea. For any questions, do not hesitate to contact us.

Double compensation extension regarding dismissal without justified cause

On November 30, 2020, Decree 961/2020 was published extending until January 25, 2021 the public emergency on occupational matters declared by Decree Nº 34/2019. In this regards, Decree 961/2020 also extends until January 25, 2021 the duplication of severance payment in case of dismissal without justified cause, regardless of the current prohibition on dismissals recently extended by Decree 891/2020. Duplication involves all the severance compensation items derived from dismissal without cause. Additionally, duplication will be applicable in case of constructive dismissals pursuant to section 246 of Labor Contract Law 20,744. Duplication will not be applicable to the personnel hired after December 13, 2019 nor the national public sector. In the recitals of the Decree it was established that, regardless of the prohibition of dismissals without justified cause and due to lack of work or work decrease provided by Decree 329/2020 and extended by Decrees 487/2020, 761/20 y 891/20, duplication will be applicable to employment terminations by employee alleging a serious breach of employer or to the acceptance by employee of the legal effect of the termination, especially, considering such cases in which reinstatement is not possible, whether due to the non-registration of the employment relationship or the cease of activities.

Although the foregoing has not been included expressly in the legal provisions of the Decree but merely in the recitals, it is highly likely that it will be considered by the labor courts in case of an eventual court claim.

This report cannot be considered as legal or any other kind of advice by Allende & Brea. For any questions, do not hesitate to contact us.

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