DNU No. 413/2021: New extension of the prohibition of dismissals

On 28 June 2021, Decree of Necessity and Urgency No. 413/2021 (the “Decree”) was published in the Official Gazette providing for the extension of the prohibition of dismissals without just cause, or on grounds of lack or reduction of work and force majeure, and suspensions on the same grounds until 31 December 2021, inclusive.

It also extends the presumption of considering as an occupational disease any COVID-19 infection by employees -as long as they have worked in their usual places and/or outside their private domicile-, and the employer must make the corresponding report and follow the requirements that the Occupational Risk Insurance Company (ART) may order.

The Decree is issued within the framework of the public emergency in sanitary matters declared by Law No. 27.541, extended by Decree No. 260/20, its amendments and its extension established by Decree No. 167/2021 and the public emergency in occupational matters declared by Decree No. 34/19 and extended by its similar No. 528/20 and 39/21.

It provides that the violation of the prohibition of dismissals and/or suspensions does not produce any legal effect, with existing labour relations and their current conditions remaining in force.

The prohibition of dismissal/suspension and duplication of compensation are not applicable to personnel hired as of 14 December 2019 or to the National Public Sector as defined in Article N° 8 of Law No. 24.156 and its amendments, regardless of the legal regime to which the personnel of the agencies are subject, or to the companies, enterprises or entities that comprise it.

Exempted from this prohibition are suspensions carried out under the terms of Article No. 223 bis of the Employment Contract Act and those who are included in the legal labour regime of construction industry personnel under Law No. 22.250.

The provisions of this Decree shall enter into force on the day of its publication in the Official Gazette.

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