Following the damage caused by storm Kristin, companies in the affected areas that are in a business crisis will be able to access a simplified layoff regime, one of the measures announced by the government to mitigate the damage caused.
Layoffs are a mechanism provided for in Labor Law that allows companies in crisis situations to reduce normal working hours for a limited period and, in some situations, to suspend employment contracts, thereby avoiding dismissals.
Simplified layoffs are a faster version of those provided for in the Labor Code, which means that there is no obligation to notify the workers committee, inter-union committee or union committees representing the company’s workers. Furthermore, it is also not necessary to comply with the negotiation phase with employees and their representatives.
This measure applies in the councils where a state of calamity has been declared, for employers who can demonstrate that they are in crisis and is expected to remain in force for three months (a period that may be extended). The employer must submit an application to Social Security, indicating:
- a) Economic, financial, or technical grounds for the measure;
- b) Human resources framework, detailed by sections;
- c) Criteria for selecting the employees to be covered;
- d) Number and professional categories of employees to be covered.
During the layoff period, employers remain bound by their legal obligations and employees’ rights are not affected.
