Last Wednesday, the Minister of Labor, Betssy Chavezpresented the preliminary draft of the Labor Code, which, according to the analysis of the laborists, would generate more informality.
What modifications does the proposal propose? There are several changes, one of which reduces the hiring modalities from nine to six, eliminating temporary contracts for new activity; for business reconversion; and for accidental emergency.
In addition, it states that part-time workers will have the same rights as full-time workers, including severance pay and CTS.
Another change that is proposed is the elimination of the payment limit for arbitrary dismissal. Currently it is a maximum of 12 payments.
It is also stated that, in order to establish and subsist, unions must affiliate only 10 workers, when it was at least 20.
Greater informality
Labor activists Germán Lora, Jorge Toyama and Ricardo Herrera agreed that, proceeding of this initiative would generate a greater labor cost overrun that would lead to more informality in the country.
Toyama recalled that currently, according to the World Economic Forum, Peru is among the eight most rigid countries for hiring and dismissal, and indicated that with the changes it would become among the five most rigid nations in terms of employment.
“The proposal has no incentive to reduce labor informalityso that the company invests in training, so that micro-enterprises hire new workers”, he commented.
Likewise, he considered that it is not taking into account that the crisis continues, that there are sectors that do not recover.
Meanwhile, Germán Lora questioned the lack of incentives to hire young people, who have been the most affected by the pandemic in terms of employment.
“I don’t know where they think that, by generating more labor rights, more people will be hired. This will in a certain way force companies to disappear, ”he assured.
In this way, he stated that companies are not going to want to create jobs “with such a complicated workload.”
For its part, Ricardo Herrera assured that the head of Labor is “applying a union logic” and “it is dangerously becoming a sounding board for the unions.”
“The Ministry of Labor has renounced being the balancer of the sometimes conflictive relationship between the worker and the employer,” he specified, and pointed out that an example of this is that “it authorized air traffic controllers to carry out an illegal strike, because it was not fulfilled with what the norm indicates for these cases”.
Data
-Regarding the snack, the proposal coincides with the current norm in that it cannot be less than 45 minutes and is not part of the working day, but adds that “this break is a working condition that generates financial compensation in favor of the worker.
-It is also proposed to eliminate the maximum percentage of foreign workers that can be hired. Now it is 20%.
