April 2018

 
     
 

LABOUR LAW

LEGISLATIVE AND CASE LAW DEVELOPMENTS

 
     
 

1. REMUNERATION OF EXECUTIVE DIRECTORS MUST BE ADDRESSED IN A COMPANY’S BY-LAWS AND APPROVED AT THE GENERAL SHAREHOLDERS’ MEETING

The Supreme Court concluded that the remuneration of executive directors must also be addressed in the company’s by-laws and be within the maximum amount approved by the general shareholders’ meeting.

2. Paid leave must start on A working day

The Supreme Court held that paid leave must start on the first working day following the day on which the event giving rise to that right occurred.

3. GENDER-BASED DISCRIMINATION. cancellation of Registration with the social security system of a pregnant employee selected from a job pool

The Supreme Court considered it discriminatory to cancel the registration with the social security system of a pregnant employee who was selected from a job pool, but who could not start rendering services due to risks during pregnancy.

4. An employee DISMISSED BEFORE FILING HIS CANDIDACY AS employee representative DOES NOT HAVE the OPTION to choose between reinstatement or compensation IN THE EVENT OF an unfair DISMISSAL

The Supreme Court held that employee representatives’ option to choose between reinstatement or compensation does not extend to an employee who is dismissed before submitting his application and who the company did not know was intending to apply as a candidate.

5. Permanent seasonal contracts: should periods of inactivity count towards length of service?

The Supreme Court declared that in permanent seasonal contracts only actual working time counts towards calculating supplementary wages for length of service.

6. COMPENSATION and ABSORPTION of two HETEROGENEOUS SALARY ITEMS

The National Court held that two non-homogeneous salary items can still be compensated and absorbed when the collective bargaining agreement allows for that compensation and absorption.

7. Changing the system of incentives agreed in the collective bargaining agreement without A consultation period infringes the right to freedom of Association

The National Court declared as void a modification of the system of incentives agreed in the collective bargaining agreement which had not respected the appropriate consultation period, finding that this violated the right to freedom of association.

 

 
   
 

In case of any doubts or comments, please do not hesitate to contact

 

Mario Barros
mario.barros@uria.com

 

Juan Reyes
juan.reyes@uria.com

       
 

Jorge Gorostegui
jorge.gorostegui@uria.com

  Raúl Boo
raul.boo@uria.com
 
     
 

The information contained in this Newsletter is of a general nature and does not constitute legal advice

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