Decree No. 886/2021 – Public Emergency in Occupational Matters – Severance Compensation Charges
On December 24th, 2021 Decree No. 886/2021 was published in the Official Gazette establishing the following:
- The extension of the public occupational emergency until June 30th, 2022.
- The extension for additional 6 months of the severance compensation charges for dismissal without cause. In this case, the employee will be entitled to collect, in addition to the corresponding legal severance compensation the following amounts: (i) from January 1st to February 28th, 2022, an additional 75% increase; (ii) from March 1st to April 30th, 2022 an additional 50% increase; and (iii) from May 1st to June 30th, 2022 an additional 25%.
- The AR$500,000 cap continuous to be in force, and therefore, the increases before mentioned could not exceed that cap.
Please note that the severance compensation charges do not apply to: (i) the labor relationships in the private sector that started after December 14th, 2019; (ii) the employees who are under the scope of legal regime of the construction activity (Law No. 22,250); and (iii) the public sector employees.
Finally, be aware that Decree No. 886/2021 does not expressly refer to the extension of the prohibition of dismissals without cause. Therefore, unless a new rule is issued, the dismissal prohibition will end on December 31st, 2021.
To access Decree No. 886/2021, please click here