With the impact of the data on the fall in employment and the increase in unemployment that INDEC reported today, the economic and social cabinet decided extend for another 60 days the prohibition of suspensions and dismissals without just cause due to lack or reduction of work and force majeure.
The decision was made today because this Saturday 27 The last 60-day extension ordered by the Government expires. Tomorrow a new decree of necessity and urgency (DNU) with the extent of the measure.
The ban on suspensions and dismissals was initially decreed on March 31st for 60 days through DNU 329/2020 and then extended for another 60 days through DNU 487/2020. And DNU 624/2020 another 60 days, until September 27, inclusive.
The only exceptions, in the case of suspensions, are the agreed between employers and workers or union representation. In addition, the DNU of July established that “hiring after its entry into force”, that is, new incorporations of personnel, were not covered by these prohibitions.
Until now, although official data indicate a significant drop in formal salaried employment, the Government considered that the loss of jobs would have been greater if these measures were not adopted and the double compensation for dismissals without cause was not in force. The drop in employment was attributed to the failure of companies to replace staff who resign or retire and to “voluntary retirements.”
The latest data from the Ministry of Labor show that in June there were 5,780,643 private wage earners compared to 6,027,822 in February. Thus, in the first 4 months of the pandemic and quarantine, there was a loss of 247,179 jobs in a formal dependency relationship. The bulk of the drop in the number of wage earners occurred in April and May, while in June it fell by another 5,900 wage earners.
The DNUs that prohibit layoffs cover all dependent workers and do not exclude those who have special regimes, such as construction or private house workers.In turn, within the framework of the suspensions agreed between the CGT and the Industrial Union ( UIA) for the sectors affected by the quarantine, 60,000 companies suspended 715,000 workers – 12% of the private sector wage earners – with a reduction of up to 25% on wages.
It is discounted that among informal workers, suspensions and dismissals must be much higher.