Labor Law Essentials: Dismissal, Agreements, and Social Security

Employee Dismissal Procedures

Dismissal Process and Severance

When an employee is dismissed, specific procedures must be followed to ensure legal compliance and fairness. Key aspects include:

• Written Notice: The employee must receive a written notice clearly specifying the facts and reasons for dismissal.
• Severance Pay: An allowance of 20 days' salary for each year of seniority in the company, with a maximum cap equivalent to 12 months' salary.
• Notice Period: Immediate dismissal is generally not permitted. A prior notice period of 30 days must be given. During this 30-day period, the employee is entitled to a leave of absence for six hours per week to seek new employment. The company may also choose to compensate the employee financially in lieu of this notice period.

Employee Rights to Challenge Dismissal

Employees have the right to challenge a dismissal through a structured legal process:

• Time Limit: A challenge must be initiated within 20 working days following the notification of dismissal or receipt of final payment.
• SMAC Conciliation: If no agreement is reached during the mandatory conciliation process at the SMAC (Service of Mediation, Arbitration, and Conciliation), the employee may proceed with a formal claim.
• Social Court: The final step involves presenting the demand before the Social Court for a judicial resolution.

Understanding Collective Bargaining Agreements

Key Scopes of Collective Agreements

Collective Bargaining Agreements (CBAs) define working conditions and rights for specific groups of employees. Their application is determined by several key scopes:

Territorial Application

This defines the geographical area where the collective agreement's articles are valid. Agreements can be:

• Sector-wide: Applying across an entire industry within a specific region.
• Company-specific: Applying exclusively to a single company.

Personnel Coverage

This specifies the group of employees to whom the agreement applies. Examples include:

• Workers in private education companies.
• Employees within the construction sector.
• Other specific productive sectors or professional categories.

Functional Scope within Companies

While less common, a functional scope can exist, delimiting the agreement's application to a specific group of workers within a company based on their functions or job categories. This means the agreement applies only to certain employees performing particular roles, rather than all company staff.

Temporal Validity and Extensions

The temporal scope defines the period during which a collective agreement is valid, often linked to maintaining "social peace" in labor relations. Key aspects include:

• Duration: Agreements typically have a duration of three to five years. This shorter term is preferred by both employers and workers due to the changing socio-economic situation, preventing long-term commitments that might become unfavorable.
• Extension Options: Many agreements include provisions for extension. If neither party challenges or objects to the agreement, it can often be extended, typically for one year.
• Negotiation During Extension: During an extension period, the obligation to maintain "social peace" generally continues. However, this does not preclude either party from initiating negotiations for a new agreement.

Social Security Schemes Explained

Overview of Special Social Security Regimes

Social Security systems often include various special schemes tailored to the unique characteristics of certain professions or sectors. These may include:

• Special Scheme for Agricultural Workers
• Special Scheme for Seafarers
• Special Scheme for Domestic Workers
• Special Scheme for Coal Mining Workers
• Special Scheme for Civil Servants
• Special Scheme for Self-Employed Workers