Decree N° 266/2021: Extension of the Prohibition of Dismissals

On 21 April 2021, Decree N° 266/2021 (the “Decree”) was published in the Official Gazette and entered into force, whereby the National Government extends the prohibition of dismissals or suspensions without just cause and on the grounds of lack or reduction of work and force majeure until 31 May 2021, inclusive.

Decree No. 39/21, issued on 3 January 2021, extended until 31 December of the same year the public emergency in occupational matters declared by Decree No. 34/19 and provided that, in cases of dismissal without just cause, the affected worker shall be entitled to receive double the corresponding severance pay, not exceeding, in any case, the sum of FIVE HUNDRED THOUSAND PESOS ($500,000) the amount corresponding to such doubling.

Exceptions to the prohibition:

  • Suspensions carried out under the terms of Article 223 bis of the Employment Contract Law (suspension agreement paying a non-remunerative sum in consideration).
  • Contracts entered into after the entry into force of Decree No. 34/19 (13/12/2019) and the National Public Sector as defined in Article 8 of Law No. 24.156 as amended.
  • Those who are included in the legal labor regime for construction industry personnel under Law No. 22.250.

The Decree states that dismissals and suspensions in violation of the provisions shall have no effect whatsoever, and existing labor relations and their current conditions shall remain in force.

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