Tinoco, Travieso, Planchart & Núñez

Forums For Adjudicating Employment Disputes

The Employment Tribunals has exclusive jurisdiction for all claims. There are different rules to determine the venue, which apply depending on the choice of the employee, which relate to: the place of performance of services, the place where the employment relationship terminated, the place where the agreement was signed and the domicile of employer. However, those claims involving underage employees should be brought in the Childhood and Adolescent Protection Court.

The Main Sources Of Employment Law

Except for public employment and members of the armed forces, all employment law is under the scope of the Organic Labor Law of Men and Women Workers (OLLMWW), its regulations (ROLL), and some other special regulations. In addition, some principles of contract law stated under the Civil Code apply, but the interpretation of such principles varies because of the protection of the employee as the weak party in the contract.

In matters of Social Security, there are special regulations and some contributions are required from both the employer and employee. Since the enforcement of the Constitution of the Bolivarian Republic of Venezuela (CRBV) and the Organic Labour Procedure Law (OLPL) case law from the Constitutional or Social Chamber of the Supreme Court of Justice is considered to provide precedents which must be followed.

National Law And Employees Working For Foreign Companies

Pursuant to the provisions under Section 2 of the OLLMWW, Venezuelan Labour Law provisions are public policy and are applicable to both Venezuelan and non-nationals when the work is performed and agreed upon in Venezuela. The parties cannot agree to subject the employment contract to any other law.

National Law And Employees Of National Companies Working In Another Jurisdiction

According to case law, rights under national law will apply to all national individuals whose contract was concluded in Venezuela even if the employee is to work in several jurisdictions (including Venezuela).

Data privacy

In Venezuela, there are no express regulations regarding data privacy. Nevertheless, main laws and regulations on data privacy and data protection are set forth in the Constitution of the Bolivarian Republic of Venezuela (published in the Special Official Gazette No. 5.908 of February 19, 2009) ('the Constitution') and the Decision issued by the Constitutional Chamber of the Supreme Court of Justice on March 14, 2001('the 2001 Decision');

According to the 2001 Decision, privileged information is constitutionally protected if such information, contained in one or more combined registries, could create a complete or partial profile of the individual whose data is included in such registries.

Legal Requirements As To The Form Of Agreement

Employment contracts may be made both in writing and orally. If made in writing, the employment contract must state the name, nationality, age, marital status, residence and domicile of the contracting parties, services to be performed, contract duration, tasks to be performed and length of ordinary workday. In addition, it is mandatory to make two copies of the written contract, one of which shall be delivered to employee.

Mandatory Requirements
  • Trial Period
  • A trial period is optional for the parties.

    If a trial period is provided for in a written employment contract it cannot be for longer than 30 continuous days. During the trial period, the employment contract may be terminated without any reason, except for any rights accrued in proportion to the time of service.

  • Hours Of Work
  • Save for some exceptions, workdays may not exceed the following: day shift (between 5:00 a.m. and 7:00 p.m.) 8 hours a day or 40 hours a week maximum; night shift (between 7:00 p.m. and 5:00 a.m.) 7 hours a day or 35 hours a week maximum, and mixed shift (comprises both periods but does not exceed 4-night hours) 7 and a half hours a day or 37½ hours a week maximum.

  • Special Rules For Part-time Work
  • N/A

  • Earnings
  • There is a monthly minimum wage to Bs. 7.000.000,00 (USD $2.00 aprox.), which companies must comply with. In addition, the employer is obligated to distribute amongst its workers a minimum of 15% of the net profits obtained as of the close of its fiscal year (a minimum limit of 30 days’ salary and a maximum of 120 days’ salary).

  • Holidays/Rest Periods
  • The worker has at least 2 consecutive days of rest per week. After 1 year of continuous employment the worker shall be entitled to a paid rest period of 15 working days plus one additional day as from the second year up to a maximum of 30 days. This entitlement also includes a vacation bonus equal to 15 days regular salary plus one additional day as from the second year up to a maximum of 30 days. There are also statutory holidays which must be observed.

  • Minimum/Maximum Age
  • The minimum age to enter employment is 16 (this may vary in special cases by authorization from child and adolescent protection authorities). There are no maximum age limits, but the employer may be eligible for tax benefits when employing persons older than 60.

  • Illness/Disability
  • There is quite a detailed regulatory framework for illness and disability contained in several legal instruments. In general, where an employee suffers from an illness or disability which is partially related to his job then the employee is entitled to 3 days’ paid leave. On the fourth day of leave, payment is covered by the Venezuelan Institute of Social Security (VISS).

    If such illness/disability is a consequence of the services performed or due to employer’s negligence, other compensations shall be paid to the employee ranging from double the sick days’ salaries up to 8 years’ salary, according to the gravity of disability/illness.

  • Location Of Work/Mobility
  • The location of work must be specified in written contracts and whether there are any restrictions on the employee’s mobility. However, if the workplace is located 30 km from the nearest town, the employer shall provide free transportation to the worker from his house to the workplace and vice versa. Half of that travel time is computed as work time. In addition, employers engaging more than 500 workers to perform services in uninhabited places more than 50 km from the nearest town shall provide housing for the workers.

  • Pension Plans
  • There is no legal obligation to offer pension plans to employees. The exception to this is the old age and disability pensions granted by the VISS. Both the employer and the employee must contribute to the VISS Funds in proportion to the salary earned by the employee. To be entitled to an old age pension, a male employee must be 60 years of age and a female employee must be 55 years of age and have at least 750 weeks of credited contributions.

    In some cases, public or private entities establish retirement pension plans in Collective Bargaining Agreements.

  • Parental Rights (Pregnancy/ Maternity/ Paternity/ Adoption)
  • The OLLMWW prohibits the employer from requiring candidates to undergo a pregnancy test as part of the recruitment process. During pregnancy employees are protected from dismissal. This protection extends from the beginning of pregnancy until two years following childbirth. Pregnant employees are entitled to paid prenatal maternity leave of 6 weeks and paid postnatal maternity leave of 20 weeks.

    Male employees may not be dismissed for two years after the birth of their child. Male employees are also entitled to 14 calendar days’ paternity leave.

    In the case of adoption, a female employee adopting a child younger than 3 years of age is entitled to 26 weeks’ leave and a male employee is entitled to a 14 days’ paternity leave. Both employees are protected from dismissal for two years after the adoption.

  • Compulsory Terms
  • For fixed term or fixed project contracts it is necessary to specify the work to be performed and the time of service which is being contracted. In written contracts, the mandatory requirements set forth above for the contract to adopt the form of an employment contract shall be met.

    There are certain Workplace Safety and Health regulations which must be strictly complied with upon engagement of the employee. Such requirements include notifying the employee of any risks associated with the work, requiring employees to undergo medical examinations to rule out any occupational diseases and to make a job description and analysis of the job’s activities.

  • Non-Compulsory Terms
  • The parties may freely agree upon any term not contradicting OLLMWW or ROLL’s regulations, provided that such provisions shall be more advantageous to the worker.

Types Of Agreement

Employment contracts may be stipulated in several forms: fixed term, indefinite duration or fixed project. The compulsory terms may vary according to the type of contract and there are some provisions to be complied with in connection with contract’s specific nature. It is not advisable to renew a fixed term employment contract more than twice as a third extension of this type of contract, once signed or executed, is considered an indefinite duration employment contract.

The employee can also be employed under a part-time agreement, but the employer should grant the part-time employee the same benefits as a full-time employee in proportion to the effective working hours.


There are no specific rules in the OLL or its regulations relating to secrecy and confidentiality. However, under sub clause h), Section 79 OLLMWW, revealing manufacturing or corporate procedures constitutes just cause for dismissal.

Therefore, the inclusion of a Secrecy/Confidentiality clause is advisable in written contracts because the breach of such clause may be enforceable in claims of civil nature and covered by compensation for any property damage caused.

Ownership of Inventions/Other Intellectual Property (IP) Rights

The OLLMWW has statutory provisions regarding the ownership of inventions and improvements performed by employees, categorized as “services”, “corporate” and “free or occasional” inventions or improvements. Ownership will depend on the category since the employer owns the services and corporate inventions or improvements as a result of the employment relationship itself or investment in resources.

In those cases, the employee is to be granted a right to participate in the results obtained from the invention if the compensation itself is proportionally inferior to such results. If the invention or improvement was a direct result of the intellectual activity of an employee not hired for such matters, it is considered a “free or occasional” invention and belongs to the employee, but if the invention is related to the activities of the company, the employer has a preferential right to buy it.

Pre-Employment Considerations

Employers are entitled to use any information about an applicant that is in the public domain, including information available on social media, for verification purposes. Employers may also conduct background checks covering a candidate’s education, family and other information at any stage of the hiring process. This includes asking candidates directly for references or contacting previous employers to check references. Information collected must be relevant to the position being applied for.

Employers should avoid collection of information that may be considered offensive or discriminatory. Protected characteristics from discrimination include sex, race, religion, marital status, pregnancy, political beliefs, sexual preferences, social class, union affiliation, physical disability or criminal background.

Specifically, requiring criminal records or a criminal background certificate from candidates and requiring female applicants to undergo medical tests to determine pregnancy are prohibited. HIV testing is permissible when the position applied for involves matters of public health.

Hiring Non-Nationals

Employers are obligated to ensure that all non-national employees have a working visa in accordance with immigration statutory laws.

Though employment rights are applicable for both national and non-national employees, statutory law provides that employers having 10 or more employees may hire up to a maximum of 10% non-national employees. In special circumstances, and with a previous authorization of governmental authorities, that percentage could be increased.

Employers will guarantee non-national employees repatriation expenses, including household transportation if necessary.

Hiring Specified Categories Of Individuals

There are restrictions on the activities which can be performed by children authorized to work, as well as by pregnant women, who are prohibited from performing certain kinds of work and from working long hours which may endanger their life and health.

In addition, there is the obligation to engage persons with disabilities in a number equivalent to not less than 5% of the aggregate workers. Employers are also required to employ apprentices under the national apprenticeship scheme. Apprentices should account for a minimum of 3% and a maximum of 5% of the number of workers, provided that the company has more than 15 workers.

On the other hand, children and adolescent apprentices, professional sportsmen and women, rural workers, land, sea and air transportation workers, motorcycle messengers, actors, musicians, folk performers and other intellectual and cultural workers, depart from the general legal framework for labour relations.

Outsourcing And/Or Sub-Contracting/Temporary Agency Work

As a rule, outsourcing is prohibited by the OLLMWW. Within the prohibited forms of outsourcing are those involving the engagement of a company to perform processes, services, works or activities of a permanent nature which are directly linked to the production process of the contracting company. Neither is outsourcing allowed when seeking to evade labour legislation or when using typical contractual forms of civil or commercial law.

Despite the legal prohibition on the use of outsourcing, the OLLMWW allows the figure of the contractor, understood as the natural or legal person who by contract is responsible for performing works or services with his own elements, tools and workers under his dependency.

If the activity performed by the contractor is inherent or related to the line of business of the contracting party or such activity is executed in such volumes that it constitutes the contractor’s main source of profit, there is joint liability. In mining and hydrocarbon activities there is a presumption of joint liability.

Changes To The Contract

The employer is entitled to perform any changes in the contract, in accordance with the “ius variandis” principle. Changes can only be made to the employee’s occupation, timing and place of work and the position of the employee without creating a less favourable status than the previous one.

Change In Ownership Of The Business

Such change in ownership of a business must be notified in writing to all employees and Unions. This notice should summarize the identification of the new owner, the exact date on which the change will be effective and the reason for the change.

The employees remain on the same terms of employment prior following the change and it does not affect rights consolidated in individual or collective bargaining agreements. If the employee does not agree with the change, he/she can end the employment relationship within 30 days following the date on which the change becomes effective.

Social Security Contributions

The employer and the employee must make social security contributions.

Old age, disability and survivors:

  • Employee: 4% of monthly covered earnings.
  • Employer: from 9% to 11% of covered payroll.
  • The maximum monthly earnings used to calculate contributions are 5 the legal monthly minimum wage.


  • Employee: 0.5% of monthly covered earnings. The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage and the maximum monthly earnings used to calculate contributions are 10 times the legal monthly minimum wage.
  • Employer: 1,70% of covered payroll. The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage and the maximum monthly earnings used to calculate contributions are 10 times the legal monthly minimum wage.

Such contributions register the employee with the VISS. Also, it is mandatory for employers to contribute to governmental social systems, such as Housing and Training of Apprentices, among others.

Accidents At Work

Employers have statutory obligations to implement a Safety and Health Program in accordance with the Organic Law on Prevention, Work Conditions and Work Environment (OLPWCWE) and its regulations. It is mandatory to guarantee the health and safety of the employees in the workplace. Employers are responsible under the OLPWCWE for accidents caused by the acts of their employees where the employees were acting in the course of their employment. Also, if the accident occurs in itinere (in their way to work or back home) it is possible to consider the employer liable.

Prevention of occupational diseases caused or made worse by exposure to agents arising from work activities is also mandatory or liability may arise.

In addition to the OLPWCWE and its regulations, there is a Technical Normative issued by the National Institute for Occupational Prevention, Safety and Health (INPSASEL, by its Spanish acronym) containing several additional obligations imposed on employers. If the employer breaches any of its statutory duties this may give rise to labour, criminal and civil liabilities jointly in the same labour claim.

Discipline And Grievance

The OLLMWW establishes justified causes for dismissal and resignation. However, an administrative proceeding must be pursued in the case of those employees, who, even though falling within such causes for dismissal, have at least one month in the service of the employer. If the prescribed procedure is not pursued the dismissal shall be automatically unjustified and any unpaid salaries and labour benefits must be paid to the employee.

Both dismissal and withdrawal take effect when the affected party receives the appropriate notice and shall be invoked before the expiration of 30 business days. Dismissal shall be notified to the worker in writing stating the grounds for the dismissal.

Harassment/Discrimination/Equal pay

Any discrimination based on age, sex, race, marital status, religion, nationality, political affiliation or social status is prohibited. Sexual harassment shall be considered an expression of sex discrimination. The victim of discrimination may either terminate his or her employment invoking a justified cause for resignation or file an action seeking protection of his or her constitutional rights and the worker has the burden of proof.

Although all cases of discrimination have been specified in the ROLL since 2006, claims based on such grounds have not been frequent and, therefore, there have been no Court decisions demonstrating the scope of these principles in practice, except in gender violence and some mobbing cases.

Compulsory Training Obligations

The employer must take such action as may be necessary to guarantee that before beginning their work, workers shall receive appropriate information and training in connection with any unsafe work conditions to which they may be exposed as well as any measures to prevent the same.

In addition, pursuant to the OLPWCWE and its regulations, the employer must develop training programs for employees covering the areas of health and safety, ergonomics, unsafe conditions as well as programs of recreation, use of leisure time and rest periods. This training must also cover the prevention of occupational accidents and illnesses and the use of personal safety and protection devices.

Offsetting Earnings

The employer may offset employee’s debts subject to certain legal restrictions. For instance, the minimum salary and the seniority benefit are protected, but any debts contracted by the employees with the employer, during employment, shall only be amortizable weekly or monthly, in amounts which may not exceed one-third of the amount equivalent to one week or one month salary.

If any debts of the employee should be pending upon termination of employment, the employer may offset the balance against any credit in favour of the employee on any account deriving from the services performed, up to fifty percent (50%).

Payments For Maternity And Disability Leave

During maternity leave (pre and post-natal) the employment relationship shall be suspended, but the employer shall be obligated to pay the employee her salary. If an employee receives a severance pay on termination which is calculated with reference to months worked; the months an employee was on maternity leave should be counted (See Severance Pay and also Parental Rights).

In the event of partial/temporary disability due to an occupational disease, the employee shall be entitled to payment of his salary for the days of his disability (See above Illness/Disability). Where the employer is negligent, the employee may be entitled to a compensation equal to double the salaries corresponding to the days of leave.

Compulsory Insurance

In the event of partial/temporary disability due to an occupational disease, the employee shall be entitled to payment of his salary for the days of his disability (See above Illness/Disability). Where the employer is negligent, the employee may be entitled to a compensation equal to double the salaries corresponding to the days of leave.

Absence For Military Or Public Service Duties

In the event of partial/temporary disability due to an occupational disease, the employee shall be entitled to payment of his salary for the days of his disability (See above Illness/Disability). Where the employer is negligent, the employee may be entitled to a compensation equal to double the salaries corresponding to the days of leave.

Works Councils or Trade Unions

For the legalization of a trade union a procedure must be followed before the Ministry of Labour and Social Security (MLSS). Once legalized the employer may not deny its existence.

Those employees promoting the legalization of a trade union and the members of a union board of directors’ benefit from union privileges. According to these “privileges” they may not be dismissed, transferred nor their working conditions diminished without a just cause previously qualified by the MLSS. All workers participating in a collective bargaining negotiation also benefit by extension from union privileges.

In collective bargaining agreements the union may set forth provisions to guarantee their members the right to be preferred in the contracting of personnel of the company with respect to workers who are not members of the association. The employer has the obligation to deduct from the salary of workers who are members of a union the ordinary and extraordinary dues fixed by the union according to its by-laws.

The extinction of the union may depend on the direct will of its members or of a body other than the union.

Employees’ Right To Strike

The employee’s right to strike is contemplated under the Constitution and the law. A strike is defined as the collective suspension of the work by workers interested in a labour conflict and includes the duty to abandon the workplace. Although a specified duration is not stipulated, the suspension must be temporary.

A strike constitutes a suspension of the employment contract; therefore, neither the worker is obligated to perform the service (provided it is not an essential service) nor is the employer obligated to pay the salary. The workers’ protection benefit from dismissal during the conflict and the period of duration of the strike must be taken into consideration when calculating severance.

Employees On Strike

Before employee’s strike, it is required that the demand made to the employer be justified, that the union represent most of the workers and that all conciliatory procedures provided under the law have been exhausted.

A strike begins with the issue of a list of demands by the union stating the petitions addressed to the employer. The MLSS shall notify the employer and a Conciliation Board shall be constituted to give a recommendation, which may be a settlement or the remission of the dispute to arbitration. In cases where arbitration is recommended, an Arbitration Board shall be appointed and the arbitration award shall be issued within 30 days following the appointment of the Arbitration Board, which term may be extended.

Employers’ Responsibility For Actions Of Their Employees

The employers answer for any damages caused by their employees if the damage is a direct consequence of performing the services.

Procedures For Terminating the Agreement

The termination of an employment contract must comply with statutory law provisions, starting with a notice of dismissal in writing stating the reason for the dismissal. However, in those cases where the employee has at least one month in the service of the employer, dismissal should be authorized by MLSS during an administrative proceeding to avoid the termination amounting to an unfair dismissal. The employer must be able to demonstrate the reason for dismissal as stated in the OLLMWW. Failure to comply with the statutory procedures will automatically result in an unfair dismissal.

When an employer dismisses an employee for just cause, he must notify the Labour Court of the dismissal. The notice does not mean the dismissal is subject to approval of Labour judge.

Instant Dismissal

Instant Dismissal is only permitted when there is a just cause, in accordance with the OLLMWW. Such causes are: (a) dishonest or immoral behaviour at work; (b) physical violence, except if in legitimate defence; (c) insult or serious lack of respect and consideration due to employer, to his representatives or members of employer’s family living under his roof; (d) intentional acts or gross negligence which may affect safety or hygiene at work; (e) omissions or recklessness which may seriously affect safety or hygiene at work; (f) unjustified absence from work for at least 3 business days in the period of 1 month; (g) material damage caused intentionally or as a result of gross negligence to machinery, working tools and implements, company’s furniture; raw materials or finished products or work in process, plantations and other property; (h) the disclosure of manufacturing, fabrication or processing secrets; (i) abandonment of work; (j) mobbing and sexual harassment and (k) any other serious breach of the obligations imposed by employment contract.

Employee's Resignation

The employment relationship could also be terminated by retirement or resignation, mutual agreement, or for reasons beyond the control of the parties. Retirement or resignation may be justified or unjustified. However, under the local rules, there is an absolute labor stability system pursuant to which protected employees may not be dismissed without just cause. Dismissal of protected workers without cause is null and void, but the employees have the option to retire or resign, collecting the additional unjustified dismissal indemnity(ies) that may apply.

Termination On Notice

The parties may terminate the employment contract by giving prior notice to the other but there are no specific provisions regulating notice periods. Only in cases of management or trusted employees (see Directors/Senior Officers) is the employer entitled to terminate the employment relationship by giving the employee prior notice depending on his seniority or by making a payment in lieu of notice.

The employee may resign without just cause by giving prior notice to the employer according to the above. But if the employee does not want to comply with this requirement there is no penalties for him.

During the notice period all obligations arising from the employment contract shall remain unaltered.

Termination By Reason Of The Employee's Age

Age does not constitute a just cause for termination of employment. It is optional for the worker to apply for his old age +pension before the VISS upon meeting the requirements of age and number of prior contributions. But this does not disable him per se to continue being employed.

Automatic Termination In Cases Of Force Majeure

Force majeure constitutes, together with national government acts, a cause for termination of the employment relationship, according to sections 76 of the OLLMWW and 39 of the ROLL. The force majeure notion must be interpreted according to the provisions of the Civil Code as the same is not defined in the OLLMWW. In that case, only the compensation in lieu of prior notice is paid according to the time of service.

Collective Dismissals

Mass layoffs occur when dismissals take place within a 3-month period, in the following numbers:

  • At least 10% of employees in companies with more than 100 employees.
  • 20% of employees in companies with more than 50 employees.
  • 10% employees in companies with less than 50 employees.

When a mass layoff takes place, the Labor Ministry has the authority to suspend collective redundancies to ensure employment. Mass layoffs requirements do not apply to job reductions that are the result of voluntary departures of employees following enhanced termination offers. The requirements only apply to job reductions that are implemented unilaterally by employers.

Employers must initiate an administrative procedure for termination of its workforce before the MLSS. The petition must set forth the economic or technical reasons that underpin the termination of workforce and provide certain supporting documentation. Once the petition is filed, a negotiation committee is set up. The negotiation committee is composed of 1 representative appointed by the workers’ union, 1 representative appointed by the employer and the labor inspector (MLSS) who chairs the committee and acts as a mediator. The negotiation committee may seek an agreement on the number of workers to be terminated, the timeframe for such terminations and the termination payments that will be provided to departing workers. Instead of the workforce termination, the negotiation committee may agree on alternative measures that avoid the job cuts.

This procedure is rarely used in Venezuela and most terminations are the result of a negotiation process with no government involvement.

Termination By Parties’ Agreement

The parties may terminate the employment relationship by mutual agreement. In such cases it is advisable to enter into a written agreement breaking down the items paid on the occasion of the validity and termination of the employment relationship and sign it before the MLSS to obtain its approval with effect of res judicata.

Directors Or Other Senior Officers

With respect to dismissal, only management employees may be fired without just cause, provided that the employer pays them the compensation in lieu of prior notice according to the seniority of the employee.

Special Rules For Categories Of Employee

In Venezuela it is necessary to obtain the MLSS’s authorization to dismiss, even with just cause, the following workers: those workers protected by union privileges, a pregnant employee during pregnancy and for two years from the date of childbirth, the father for two years following the birth of the child and any worker in case of strikes and collective conflicts.

Also, the OLPCWE allows an employee to be given the position of prevention delegate to guarantee the health and safety rights of workers. This delegate is elected by the workers and may not be fired without just cause and without the authorization of the MLSS from the time of his election until 3 months after the expiration of the term for which he was elected.

Also, the Presidency of the Republic has established the obligation for the employer to request the authorization of the MLSS to fire with just cause those workers who have at least one month in the service of the employer.

In all these cases, the workers may not be fired without just cause and when there is a just cause and the authorization to fire is not requested, the dismissal shall be deemed unfair and will give rise to the reinstatement of the worker to his position and payment of accrued wages from the date of dismissal.

Specific Rules For Companies in Financial Difficulties

There are specific rules for dismissals due to financial difficulties. The employer must follow a specific procedure established by the MLSS for “mass dismissal”. This procedure must be followed in the following circumstances: when the measure affects 10% or more of employees working for a company with more than 100 employees; when the measure affects 20% of employees at a company with more than 50 workers; and when the measures affects 10 employees of a company with less than 50 employees during a period of 3 months, or even longer if the circumstances should be of a critical nature.

Restricting Future Activities

There are no legal restrictions with respect to the future activities of the employee. It is advisable to include in the contract a confidentiality clause or clause prohibiting disclosure of industrial or commercial secrets, should such provision had not been set forth at the time of the hiring (See above, Secrecy/Confidentiality).

Whistleblower Laws

There is no legal protection for whistleblowers in Venezuela and it is not common in practice.

However, many transnational and local companies in Venezuela have policies and code of conducts protecting those who step up and expose Corruption, fraud, mismanagement, breaches of legal obligations. Some of these companies have hot lines through which employees can file a complaint with no obligation to say their names.

Special Rules For Garden Leave

There are no special regulations on garden leave in this jurisdiction.

Severance Payments

After three months of continuous employment, employees are entitled to a severance pay of up to 15 days salary per quarter plus 2 additional days for every complete year after two continuous years of service, up to a maximum cumulative total of 30 days. Those amounts should be credited quarterly, but the accumulated amount is only delivered to the employee upon termination of the employment relationship, although the law provides for the possibility of obtaining advances during the employment relationship of up to a 75% in certain specified cases.

In addition to the quarterly credit to which the preceding paragraph refers, upon termination of the employment relationship, the employer shall multiply a month’s salary by each complete year of service or fraction exceeding six (6) months, taking the last salary as basis. The resulting amount shall be compared with the amount of money accumulated on account of severance pay and the higher of the two amounts shall be the amount to be finally paid by the employer.

If the employment relationship is terminated for a cause not imputable to the worker, the employer shall pay to the worker a compensation equivalent to the Severance Pay.

Special Tax Provisions And Severance Payments

Severance pay is not subject to income tax.

Allowances Payable To Employees After Termination

There are no allowances payable to employees after termination of employment.

Time Limits For Claims Following Termination

The statute of limitations for labour actions runs out after ten years. In cases of unfair dismissal, the worker must file the action with the MLSS within 30 days following dismissal. In any other case, the worker may request reinstatement before the Labour Courts within 30 working days following unfair dismissal. If the worker fails to do so, he shall forfeit his right to reinstatement, but will not lose other rights to which he is entitled to as a worker.

Specific Matters Which Are Important Or Unique To This Jurisdiction

There are no specific matters which are important or unique to this jurisdiction.

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Eddy De Sousa Pereira
Tinoco, Travieso, Planchart & Núñez


© 2021, Tinoco, Travieso, Planchart & Núñez. All rights reserved by Tinoco, Travieso, Planchart & Núñez as authors and the owners of the copyright in this chapter. Tinoco, Travieso, Planchart & Núñez have granted to Multilaw non-exclusive worldwide license to use and include this chapter in this guide and to sublicense Lexis Nexis, a division of RELX Inc. and its affiliates certain rights to use and distribute this Guide.

The information in the How to Hire and Fire Guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: June 2021