By Atty. Cristina Guarderas B
Head of Labor Department
Dear Friends and Clients:
We are pleased to provide you with a brief summary of the latest legislation regarding the "Administrative Approval Process for Termination of Employment" pursuant to Ministerial Agreement No. MDT-2014-041. This update, published in the Official Gazette on March 26, 2024, affects both private and public sector employees and employers.
Key Aspects | Description |
Adaptation of Pending Applications | Applications for approval for employment termination currently in process without resolution can be adapted to the norms of this Ministerial Agreement. |
Competence | The competent labor inspector is the one from the territorial jurisdiction where the labor contract is executed or where the worker or employer resides. There's the possibility to appeal before the regional director of Labor. |
Appearance | Appearance to this procedure can be in person or through a legal representative, agent, or judicial procurator. |
Application Content | The application requirements remain the same except for two changes: if relevant, details of the legal entity must be added (name, RUC, and legal address); and for requests related to employment termination, they must be made to the Labor Inspector, who will decide on their convenience. |
Required Documents | Copies certified of the legal representative's identification are needed if the applicant is incapable. Relevant proofs and a deposit voucher for the employment termination process, along with the worker's last full salary receipt, must be added. |
Stages and Procedure Timeline | The process begins with a draw to assign an inspector to the application, followed by a requirement review. If not met, the applicant has three days to correct or complete the application; otherwise, it will be archived. |
In-Person Notification | If the notification is in person, the defendant has two days to respond, complying with the legal requirements. Regardless of the response, the Inspector will start the investigation in three days, summoning the involved parties. |
Investigation and Conciliation | The investigation will start by attempting a conciliation. If an agreement is reached, a record will be drafted. Exceptionally, the Inspector may request additional evidence or suspend the hearing for up to three days to clarify disputed facts. |
Resolution | The inspector will issue their resolution within three days counted from the issuance of the investigation record. If applicable, it will order to deliver to the worker or return to the employer the amount deposited for the employment termination process. |
Appeal | The party affected by the decision of the Inspector or the regional director of Labor (according to Art. 623 of the C.T.) may appeal within three days after being notified. The appeal will be reviewed by the Regional Director within a maximum of ten days, or by the Labor Undersecretary in the second case. This appeal does not prevent recourse to a Labor Judge, maintaining the resolution's informative value. |
Prescription and Calculation of the Term | There is a one-month period to initiate the process of requesting approval for employment termination from the moment the need or right arises. The calculation of the prescription period depends on the nature of the incident or behavior, according to the criteria established in article 172 of the Labor Code (C.T.). |
Expiration Due to Lack of Resolution | If the application was submitted and the Inspector does not make a decision within a month from the notification date of the application, then the process is considered null or "expires". This means that, due to the Inspector's inaction, the application does not progress, and the procedure is annulled, as if it had never been initiated. Reference is made to the notification date of the application. |
Press Notification and Expiration | In the case of notification through the press, the counting of the one-month expiration period starts 22 days after the notification was published. This gives additional time before the process is considered expired due to the indirect form of notification. |
Need more information?
At Meythaler & Zambrano Lawyers, we are committed to providing you with the support and guidance you need to navigate these new regulatory requirements. If you need assistance or have questions regarding the permitting process or any other legal matter, please do not hesitate to contact us. We are ready to help you ensure compliance and protect your employment and business rights.
