The Decree 266/2021 (the “Decree”) extended the prohibition of dismissals: (i) without justified cause; or (ii) due to lack or reduction of work and force majeure until May 31, 2021.
The Decree also extended the prohibition of unilateral furloughs on grounds of force majeure, or lack or reduction of work, also until May 31, 2021.
Exceptions to this prohibition are the furloughs in the terms of Section 223 bis of the Labor Contract Law, this is, furloughs agreed with each employee or the union, approved by the labor authority, for those employees that shall not perform any tasks, due to lack or reduction of work (not attributable to employer) or force majeure (dully evidenced).
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 those hired under the construction industry legal regime of Law 22,250 and to those hired after December 13, 2019.
