FTC regulated: Yes

Remarks

FTCs are regulated by articles 25, 26 and 27 of Labour Code.
Article 25. The employment relationship or individual contract can be for a determined or indeterminate time.
Article 26. The employment contract is presumed to be concluded for an indefinite period, except when:
a) when the parties agree on a deadline;
b) when the term for the performance of the work or service is a function of their duration;
c) in the case of seasonal or cyclical work without prejudice to the provisions of collective agreements.
Article 27 provides that if a workers keeps working for the same employer for at least 30 days after the term of FTC, the contract will be considered for indefinite term.

Valid reasons for FTC use: no limitation

Remarks

Article 26. The employment contract is presumed to be concluded for an indefinite period, except when:
a) when the parties agree on a deadline;
b) when the term for the performance of the work or service is a function of their duration;
c) in the case of seasonal or cyclical work, respecting any provisions of collective agreements.

Maximum number of successive FTCs: 2

Remarks

Article 27 of Labour Code provides that the contract or employment relationship is considered for an indefinite period when it does not have a term. Likewise, when the term of the contract has expired for a specified time and the worker continues to provide his services for an additional thirty days, or when the term of his second extension has expired, continue working or extend it again.

Maximum cumulative duration of successive FTCs: no limitation

Maximum probationary (trial) period (in months): 30 day(s)

Remarks

Article 28 of Labour Code provides that in indefinite term contracts, the parties may agree to a trial period of no more than thirty days during which any of them may terminate the employment relationship without any liability to them.

Excluded from protection against dismissal: No

Remarks

See article 28 above.

Obligation to provide reasons to the employee No

Remarks

The Labour Code does not have any provision determining that the employer should provide justification or previous notification to the worker concerning the dismissal.

Valid grounds (justified dismissal): any fair reasons

Remarks

There are no valid grounds for dismissal. According to article 41 of Labour Code, the termination of employment is possible due to a) expiration of term; b) death or permament incapcity of the employee (or employer, in case the situation prevents the proper functioning of the enterprise), c) court decision in criminal case, d) economic reasons, such as end of enterprise, e) force majeure, f) retirement of the employee.
However, according to the Labour Code, article 45, it is possible to dismiss a worker without any fair reason, in which case the worker is entitled to the payment of respective compensation, plus vacation period and Christmas bonus indemnities.
In case of disciplinary dismissals, which might occur up to 30 days of the fact that caused the dismissal, as defined by article 48, no severance payment is due, but the employer must have the authorization of the Departmental Labour Inspector, who will not be able to resolve without giving the worker a hearing. Once the dismissal is authorized, the case will go to the Inspector General of Labour, that will provide a final decision. The worker can still challenge the decision or the termination itself before the Labour Courts.

Prohibited grounds: pregnancy, maternity leave, trade union membership and activities

Remarks

According to Article 144 of Labour Code, the worker in a state of pregnancy or enjoying prenatal and postnatal leave may not be dismissed, except for just cause previously established by the Ministry of Labour.
Moreover, article 231 to 234 provide rules for protection against dimissals of employees involved in trade union activities. The dismissal would be only allowed with the authorization of Ministy of Labour.

Workers enjoying special protection: workers' representatives, pregnant women and/or women on maternity leave

Remarks

See articles 144, 231 and 234 of Labour Code.

Notification to the worker to be dismissed: no specific form required

Pay in lieu of notice: No

Notification to the public administration: Yes

Remarks

It is necessary to notify and receive the approval of the Ministry of Labour in cases involving disciplinary dismissals (Article 48 of Labour Code), particularly concerning workers who enjoy special protection, such as pregnant workers (article 144) and trade union members (article 231).

Notification to workers' representatives: No

Approval by public administration or judicial bodies: Yes

Remarks

It is necessary to notify and receive the approval of the Ministry of Labour in cases involving disciplinary dismissals (Article 48 of Labour Code), particularly concerning workers who enjoy special protection, such as pregnant workers (article 144) and trade union members (article 231).

Approval by workers' representatives: No

Notes / Remarks

Notes

There are no statutory provisions concerning notice periods in the Labour Code.

Definition of collective dismissal (number of employees concerned): No statutory definition of collective dismissal for economic reasons and no threshold involved.

Remarks

Employers that definitively cease their activities due to economic reasons must get approval from the Ministry of Labour (article 41, d, LC). In case of dismissals due to economic reasons, article 42 provides that vacation pay and 13th salary must be paid, but standard procedures for individual dismissals can be applied to any other type of collective dismissals.
Article 38 of Labour Code also provides rules for suspension of the employment agreements, such as: a) lack of raw material, b) company´s shut-down ordered by competent authority following preventive or corrective reasons of hygiene or security, c) temporary closing-up of the establishment due to economic or technical reasons, d) fortuity or force majeure. The suspension of activities is also possible only after Ministry of Labour`s approval.

Prior consultations with trade unions (workers' representatives): No

Notification to the public administration: Yes

Remarks

Dismissals due to economic reasons must be notified and authorized by Ministry of Labour (article 42, d, Labour Code).

Notification to workers' representatives: No

Approval by public administration or judicial bodies: Yes

Remarks

Dismissals due to economic reasons must be notified and authorized by Ministry of Labour (article 42, d, Labour Code).

Approval by workers' representatives: No

Priority rules for collective dismissals (social considerations, age, job tenure): No

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): No

Priority rules for re-employment: No

Severance pay:

Remarks

Article 42 of Labour Court provides that whatever the cause of termination of the employment contract, the employer is obliged according to the Law, to pay the worker, or respective heirs, the proportional part of the benefits such as vacations and thirteenth month.

Article 45 of Labour Code also provides that when the employer terminates the employment contract for an indefinite period and without just cause, the worker is entitled to:
1) One month's salary for each of the first three years of work;
2) Twenty days of salary for each year of work from the fourth year.

In no case will the compensation be less than a month or more than five months. The fractions between the years worked will be liquidated proportionally.

tenure ≥ 6 months: 15 day(s)

tenure ≥ 9 months: 22.5 day(s)

tenure ≥ 1 year: 1 month(s)

tenure ≥ 4 years: 3.75 month(s)

tenure ≥ 5 years: 4.15 month(s)

tenure ≥ 10 years: 5 month(s)

tenure ≥ 20 years: 5 month(s)

Redundancy payment:

Compensation for unfair dismissal - free determination by court: No

Compensation for unfair dismissal - Are there legal limits?: Yes

Remarks

In case of unfair dismissal, according to article 46, if allegations of unfair dismissal are proved, the Labour Judge can order reinstatment plus back pay. if the employer does not comply with the judicial decision, the compensation in double will be ordered.

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method):

Remarks

According to article 45, when the employer terminates the employment contract for an indefinite period and without just cause, the worker is entitled to compensation equivalent to:
1) One month's salary for each of the first three years of work;
2) Twenty days of salary for each year of work from the fourth year.
In no case will the compensation be less than a month or more than five months. The fractions between the years worked will be liquidated proportionally.
Also, in cases when the workers enjoy special protection, article 46 provides that worker should be reinstated with the payment of the salaries from the dismissal to the effective return to work. In case that is not possible, the double to the severance pay dyermined by article 45 shall be paid.

Reinstatement available: Yes

Remarks

Article 46 of Labour Code provides that when the termination of the contract by the employer is verified in violation of the prohibitive provisions contained in this code and other labour regulations, or constitutes an act that restricts the worker's right, or is in retaliation against the worker for having exercised or attempted to exercise their labour or union rights, the worker will have action to demand their reinstatement before the Labor Judge, in the same position that they held and in identical working conditions, remaining
the employer, if the refund is declared, to the payment of the wages not received and to their refund.
If the employer does not comply with the judicial resolution, this must pay the worker, in addition to the severance pay, a sum equivalent to one hundred percent of the same.


Preliminary mandatory conciliation: Yes

Remarks

Article 310 of Labour Code provides that a first hearing will be scheduled to attempt conciliation. Articles 323 et. seq. provide rules for judicial conciliation.
Also, article 72 of Labour Procedure Code provides in paragraph 1 that it will be a requirement to be able to access the jurisdictional means in cases of small amounts claims, established by the Supreme Court of Justice, to have exhausted the conciliatory procedure before the administrative labor authority. In the other cases, it will be optional to participate in conciliation through administrative authorities.

Competent court(s) / tribunal(s): labour court

Existing arbitration: Yes

Remarks

The Ministry of Labor has a General Directorate for Collective Law and Labor Consulting, under whose direction is the Department of Collective Bargaining and the Department of Individual Conciliation that offers arbitration services for alternative resolution of conflicts, but it is not mandatory for most cases (only for small claims, according to article 72 Labor Procedure Code).

Length of procedure: 30day(s) (statutory)

Remarks

Article 46 provides that the Labor Judge must resolve these cases within thirty days from the filing of the claim and in the case of appeal, the respective court must do so within sixty days of receiving the proceedings. Both terms are mandatory and to the judges and magistrates who do not resolve within the indicated terms, the respective superior at the request of the aggrieved party will apply a fine equivalent to ten percent of the salary of the respective authorities.

Burden of Proof: both

Remarks

Article 328 of Labour Code and article 54 of Labour Procedure Code.