In a follow-up to measures to reduce work shifts and suspend employment contracts, we remind our clients that, if the causes for which they requested the authorization of the measures due to the emergency continue, they may consider extending the period of the reduction of the work shifts or suspensions of the employment contracts.
To manage the request for extension of the authorized period for the relevant process (reduction of work shifts or contract suspension), the company must submit a form, jointly with an affidavit stating that the causes that gave rise to the request persist and the company complies with the others requirements established by the Ministry of Labor and Social Security (MTSS).
If a company continues with the application of the aforementioned measures, without the due request for an extension before the MTSS, this administrative authority could initiate administrative processes, generate precautions, order retroactive salary payments and, depending on the case, even file a judicial process for violation of labor regulations.
It should be mentioned that the MTSS is empowered to perform random inspections to verify that the conditions alleged by the company and under which they granted the corresponding authorization are being fulfilled and/or have existed. Given the above, we recommend that the company have available the documentation that supports the request and the respective authorization resolution from the Ministry of Labor, and can verify that the request applies only to those employees who were added to the list. Also, we recommend awareness of the expiration date of the term granted by the administration.
To assure compliance with the above, we offer our advisory and support service in the procedures indicated.