EMPLOYMENT

Labor bill brings changes to layoffs and severance pay

Labor bill brings changes to layoffs and severance pay

The new labor bill the cabinet approved on Friday brings changes to layoffs and severance pay.

Among other things, it allows for a dismissal without compensation if an employee is unjustifiably absent from work for five consecutive days. It is also expressly stated that employment with a contract of indefinite duration for the first 12 months from the date of its validity may be terminated without notice and without severance pay.

The dismissal is considered invalid if the employee refuses to accept an arrangement of working hours. The employer cannot fire an employee because he has chosen to have a second job, beyond the basic eight hours. 

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