The National Executive Branch published the Need and Urgency Decree 34/2019 (the
“DNU”) in the Official Gazette on December 13rd, 2019, date on which entered into
effect.
The DNU declares the public emergency in occupational matters and doubles the
compensation for dismissal without cause of the workers for the period of 180 days,
which will be calculated according to the precepts of the current labor legislation.
This duplication "includes all compensation items originated by reason of the uncaused
termination of the employment contract."
It is interesting to emphasize the rule related only to compensation items, not including
other items that could be part of the calculation of compensation, as is the case of art. 80
of the Labor Contract Law (LCL), which establishes compensation for sanctions for the
employee that does not give the employer, after the termination of the employment
contract, the corresponding work certificate.
At the same time, in order to encourage the creation of new jobs and avoid an adverse
reaction this decree will not be applicable to hiring that concluded after its entry in
force.
