The Decree 624/2020 (the “Decree”) extended the prohibition of dismissals: (i) without justified cause; or (ii) due to lack or reduction of work and force majeure, for a period 60 days as from its original deadline (i.e. the prohibition is now extended until September 30, 2020).
The Decree also extended the prohibition of unilateral furloughs on grounds of force majeure, or lack or reduction of work, also for a period of 60 days as from its original deadline (i.e. the prohibition is now extended until September 30, 2020).
Exceptions to this restriction are suspensions under the terms of Article 223 bis of the Labor Contract Law, i.e., those agreed individually or collectively and approved by the labor authority, and when due to lack or reduction of work, not attributable to the employer, or force majeure duly proven, the employee does not perform the work for which he/she is responsible.
The Decree provides that any dismissals and lay-offs in breach of the provisions of this Decree shall have no effect, and the labor relationships and its terms and conditions shall remain in force as before.
The Decree will not be applicable to the employees hired after its effective date, i.e., July 29 2020.
This report should not be considered as legal or any other type of advice by Allende & Brea.
