Productivity and Competetiveness Law

Through Ministerial Resolution No. 263-2019-TR published in the Official Gazette El Peruano, the pre-publication of the draft supreme decree that approves the Regulations of the Labor Productivity and Competitiveness Law and its statement of reasons in the Institutional Portal of the Ministry.

Among the main novelties we find the following:

• Remuneración: Se uniformiza tratamiento de conceptos que no constituyen remuneración en un solo articulado.
• Remuneration: Treatment of concepts that do not constitute remuneration is standardized in a single article.
• Trial period: The trial period is conceptualized, indicating that it cannot affect the worker’s fundamental rights, and also regulates the possibility of dismissal or the establishment of a shorter period.
• Suspension of the Employment Contract due to Act of God or Force Majeure: Both concepts are defined and conditions that the employer must meet to initiate the administrative suspension procedure are established.
• Compulsory and Automatic Retirement: A period of no less than 15 days prior to the date on which the worker turns seventy is established for the employer to notify the worker of the causal application, otherwise compensation is due.
• Employees of trust: The sole withdrawal of trust does not deprive the worker of compensation for arbitrary dismissal.
• Dismissal related to the worker’s capacity: Conditions are established for the employer to apply the cause, such as implementing a performance management system that uses objective, reasonable criteria and generality of workers who perform work in similar conditions, among others.
• Essential formalities of the dismissal: It is pointed out that the error in the legal citation in the dismissal procedures invalidates the same.
• Payment of indemnity and concepts owed upon termination: It is established that said payments must be made in separate accounts or through appropriations in independent judicial processes.
• Digital documents: It is established that the employer and the worker can use their digital signature or other modalities as long as the authenticity of the document is guaranteed.

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