Labor Rights: Contract Changes and Termination Rules

Functional Mobility and Job Changes

Functional mobility: The worker is required to perform the work agreed upon joining the company. The employer may unilaterally change the functions that the employee was performing as usual.

Options for Individual Transfers

If the individual is moved, the worker may take the following decisions:

• Accept the Transfer: The company must pay the costs incurred by the worker and their families who are moved.
• Terminate the Contract: The worker shall be entitled to receive indemnification of 20 days of salary per year worked, pro-rated for periods shorter than a year, up to a maximum of 12 months.
• Go to Labor Court: Without prejudice to the enforceability of the transfers, if the transfer is unjustified, the employee will be reinstated to the original workplace.

Substantial Modifications to Employment Contracts

Substantial modifications to the contract of employment include changes to working hours, shift work regimes, pay systems, performance work systems, and functions where the change exceeds the limits of functional mobility.

Understanding Contract Suspension

Suspension of an employment contract is defined as the temporary interruption of providing work without it resulting in the termination of the contract between the company and the employee.

Final Settlement Components

Concepts included in a final settlement (finiquito) are:

• Days worked in the month.
• Proportional extra payments.
• Labor holidays and overtime not taken.
• Compensation, if applicable.
• Breach of notice period and the corresponding amount.

Termination Due to Objective Reasons

Extinction of the contract due to objective reasons includes:

• The ineptitude of the worker.
• Lack of adaptation to the post.
• Depreciation of labor (redundancy).
• Attendance faults.
• Inadequate budgetary provision.

Requirements for Objective Dismissal

• Communication: Written notice expressing the reasons for the dismissal and the effective date.
• Compensation: An allowance of 20 days per year of service.
• Notice: Granting of a notice period of 30 days.
• License: During the notice period, the worker shall be entitled, without loss of remuneration, to leave 6 hours a week to find new employment.
• Resource: The worker may appeal against the decision to terminate as if it were a disciplinary dismissal.

Proof of Notice Delivery

Means the employer can use to prove the notice of dismissal has been received by the worker:

• Delivery in duplicate with the signature of the interested party.
• Delivery in duplicate with two witnesses.
• Certified mail with acknowledgment of receipt.
• Telegram with delivery confirmation.
• Notification via an attorney or notary.

The Conciliation Process

An act of conciliation involves the labor authority summoning the parties to try to reach an agreement within 15 days following the presentation, noting the day and time for the act. It can end with agreement (aveniencia) or without agreement (sin aveniencia).

Fair Dismissal Criteria

A dismissal is considered fair when the causes alleged by the employer are proven.