Notification to the worker to be dismissed: written
Art. 32 LPCL
Notice period:
See art. 31 LPCL:
- The employer must give the worker a reasonable period of written notice, of not less than six calendar days in case of misconduct, so that the worker can present a written defense to any charges brought against him or her.
- If the worker is guilty of flagrant serious misconduct where it would be unreasonable to require the employer to continue the employment relationship, no notice is required.
- In the event of allegations related to capacity of the worker or errors, the employer must give a notice of at least 30 days in order for the employee to prove his or her professional capacities and correct any error.
tenure ≥ 6 months:
tenure ≥ 9 months:
tenure ≥ 2 years:
tenure ≥ 4 years:
tenure ≥ 5 years:
tenure ≥ 10 years:
tenure ≥ 20 years:
Pay in lieu of notice: No
Notification to the public administration: No
Notification to workers' representatives: No
Approval by public administration or judicial bodies: No
Approval by workers' representatives: No
Definition of collective dismissal (number of employees concerned): Economic, technological and structural reasons: concerning more than 10 % of the workers.
See art. 48 LPCL.
[In addition to economic, technological and structural reasons, the LPCL foresees 3 other objective causes for termination of employment, which are not dealt with under this section, namely: a) fortuity and force majeure; b) dissolution, bankruptcy, liquidation proceedings; c) Patrimonial restructuring (See Supreme Decree No 014-99-ITINCI approving the Unified Text of the Law of Patrimonial Restructuring
Prior consultations with trade unions (workers' representatives): Yes
art. 48 a) and b) LPCL: In case of collective dismissal grounded on economic, technological and structural reasons, the employer first has to notify to workers' representatives and provide them with the relevant information regarding the reasons of the retrenchment and the names of affected workers. Then workers' representatives and employer shall undertake a consultation on alternatives to dismissal (suspension, reduction of working hours...).
If the parties reach an agreement, it will become enforceable.
Notification to the public administration: Yes
Art. 48 a), c), d), e) LPCL.
After consultations with the trade unions begins, the employer shall file an application before the the Labour Administrative Authority [Autoridad Administrativa de Trabajo] based on an expert report that justifies the need for the dismissal.
Once the workers or their representatives have reviewed the report, they have 15 days to present their own expert report. There shall then be a meeting between the employer and the trade unions or workers' representatives under the auspices of the Labour Administrative Authority in order to find agreement on the retrenchment's modalities. In the absence of agreement on the modalities of the retrenchment, the Administrative Authority will issue an binding decision which can however be challenged within 3 days.
Notification to workers' representatives: Yes
Art. 48a) LPCL.
Approval by public administration or judicial bodies: No
Art. 48 e) LPCL.
Approval is only mandatory in the absence of agreement on the modalities of the retrenchment between the employer and the worker's representatives. In such cases, the Labou Administrative Authority will issue an binding decision.
If an agreement is reached however, it will be legally enforceable.
Approval by workers' representatives: No
If there is an approval by the worker's representatives the collective dismissal will take place according to the agreed modalities. In the absence of such approval, the Labour Administrative authority will issue a resolution (art. 48 LPCL).
Priority rules for collective dismissals (social considerations, age, job tenure): No
Employer's obligation to consider alternatives to dismissal (transfers, retraining...): Yes
Mandatory consultations on alternatives to redundancies (such as temporary suspension of work, reduction of working hours..): art. 48 b) LPCL.
Priority rules for re-employment: Yes
See art. 52 LPCL: Workers dismissed for fortuity and force majeure or economic, technological and structural reasons have preferential rights to be reinstated if the employer decides to hire, directly or through third persons, new staff to fill similar posts, within a year of the collective dismissal. In the event of non-compliance, the worker is entitled to request, through legal channels, corresponding compensation in accordance with the law.
Severance pay:
LLCP does not foresee any severance pay or redundancy payment. The employer can terminate the employment contracts for economic reasons, technological reasons, or structural causes that make the cessation necessary or in the event of force majeure without having to pay compensation.
Dismissal of a worker due to his or her capacity or conduct does not give rise to compensation (art. 34, LLCP)
If the employer dismisses an employee for reasons other than those exhaustively listed in the LPCL, he or she will have to pay compensation for arbitrary dismissal which is calculated according to the length of service (see below - avenues for redress).
tenure ≥ 6 months: 0 month(s)
tenure ≥ 9 months: 0 month(s)
tenure ≥ 1 year: 0 month(s)
tenure ≥ 4 years: 0 month(s)
tenure ≥ 5 years: 0 month(s)
tenure ≥ 10 years: 0 month(s)
tenure ≥ 20 years: 0 month(s)
Redundancy payment:
tenure ≥ 6 months: 0 month(s)
tenure ≥ 9 months: 0 month(s)
tenure ≥ 1 year: 0 month(s)
tenure ≥ 2 years: 0 month(s)
tenure ≥ 4 years: 0 month(s)
tenure ≥ 5 years: 0 month(s)
tenure ≥ 10 years: 0 month(s)
tenure ≥ 20 years: 0 month(s)
1) Dismissal based on the worker's capacity or conduct: no severance pay (art. 34 LPCL)
2) Collective termination (10% of the workers) for economic reasons, collective termination due to force majeure, bankruptcy, restructuring: Redundancy payment in accordance with art. 21 Supreme Decree No 001-97-TR (Texto Único Ordenado de la Ley de Compensación por Tiempo de Servicios)
2) Dismissal without cause (arbitrary): compensation for unfair dismissal (art. 34 and 38 LPCL - see below)
Note: the Peruvian legislation foresees a seniority award (Compensacion for Tiempo de Servicio - CTS) which is a social benefit payable to a worker, upon termination of employment irrespective of the reason for the termination. It is intended to cover the fundamental risk caused by the termination of an employment relationship and the consequent loss of income. This compensation is equivalent to one monthly average salary per year of service. The CTS is deposited to a bank chosen by the employee each semester, 50 % at all times (in May and November). While prior to 1991, the CTS was to be paid only once the employment relationship was terminated, the employee can now freely withdraw up to 50% of the CTS.