In the context of the health emergency due to the coronavirus pandemic, the Government will extend the prohibition of dismissals and suspensions of workers for another 60 days, until next November 30. It will be published this Thursday, September 24 in the Official bulletin.
The ban, according to information from official sources, will be in the context of a decree to be signed by the president Alberto Fernandez “in general agreement of ministers,” he stated Télam. Decree 624 promulgated by the Government and in force until this September 30, prohibited companies from firing their workers without just cause, for reasons of force majeure or decreased demand for work.
Meanwhile, the Government had already extended the double severance pay until the end of the year, through a Decree of Necessity and Urgency (DNU) that extends the public emergency in occupational matters. For this reason, workers will be entitled to double compensation until the end of the extension of the extension that prohibits layoffs until next November.
The decree will be the fourth that the Fernández administration uses to prohibit layoffs from the beginning of the Social, Preventive and Mandatory Isolation: each of them extended the terms by 60 days. As in the previous decrees, the suspensions made in the terms of article 223 bis of the Labor Contract Law would be exempt from this prohibition, he explained. NA.
The measure seeks to maintain jobs amid the economic crisis that the country is going through, which was aggravated by the impact of the coronavirus pandemic and mandatory isolation measures to prevent infections. However, despite the prohibition of dismissals without just cause, according to figures from the Labor Indicators Survey (EIL) of the Ministry of Labor, between March and July there were 309 thousand dismissals and of that total 161,451 were by decision of the company, while 568 thousand suspensions were registered.
According to data from the National Institute of Statistics and Censuses (INDEC) released this Wednesday, September 23, the unemployment rate rose from 10.4% to 13.1% at the end of the second quarter of the year, with an increase of 2.5 percentage points compared to the 10.6% of the same period of 2019.
Unemployment would affect about 2.2 million people in the country. According to INDEC, the records “largely reflect the impact that the COVID-19 pandemic had on labor market dynamics and the restrictions on certain activities and circulation provided by decree that established preventive and mandatory social isolation (ASPO ) “.