Herrera Business and Industries Association analyzes the proposed labor reform and jurists affirm that it is necessary to contribute to preserving jobs
A panel of experts organized by the National Association of Herrera Companies and Industries (ANEIH), revealed progress made with the proposed reform of the Labor Code, among which are reducing judicialization in labor relations, the elimination of reckless lawsuits, as well as making it possible to pay rights to employees and close unjustified seizures.
Likewise, with regard to procedures related to labor sentences, they highlighted the limitation of appeals in certain cases, which, in accordance with article 641 of the Labor Code, from now on the so-called doubles will not be admissible, or appeals, but rather, the exact amounts of the sentences will be deposited.
On the panel, the jurists Luis Vílchez González and Luis M. Vílchez Bournigalemphasize that in the case of employment contracts, they cannot be terminated by the employer while the worker is on leave or vacation, in contrast to the employee, who can resign during the period, which they consider ” “It is not an improvement solution for the company.”
In this context, they highlighted that, in the context of the suspension of employment contracts, the employer must keep him paying social security contributions, which results in additional costs for the company.
Likewise, they highlighted that another point that was not clear is that related to the minimum wage, which places MSMEs in a dilemma, by not taking into account the cost of the currency, nor the scale established in the legislation, placing the sector in a dilemma and with a scenario of potential stagnation.
“Clearly, it is a stagnation of growth, because if you add more workers to the productive unit, you go to another scale, and if you go to another scale, salaries increase, and if you increase them, you expand the labor liability, and that places in disadvantage to that productive sector,” they noted.
