On 30 November 2020, Decree 961/2020 was published extending until 25 January 2021 the public emergency on occupational matters declared by Decree Nº 34/2019. In this regards, Decree 961/2020 also extends until 25 January 2021 the duplication of severance payment in case of dismissal without justified cause, regardless of the current prohibition on dismissals recently extended by Decree 891/2020. Duplication involves all the severance compensation items derived from dismissals without cause. Additionally, duplication will be applicable in case of constructive dismissals pursuant to section 246 of Labour Contract Law 20,744.
Duplication will not be applicable to the personnel hired after 31 December 2019 nor the national public sector.
In the recitals of the Decree it was established that, regardless of the prohibition of dismissals without justified cause and due to lack of work or a decrease in work, provided by Decree 329/2020 and extended by Decrees 487/2020, 761/20 y 891/20, duplication will be applicable to employment terminations by employees alleging a serious breach of the employer, or to the acceptance by employees of the legal effect of the termination, especially considering such cases in which reinstatement is not possible, whether due to the non-registration of the employment relationship or because the activities have ceased.
Although the foregoing has not been included expressly in the legal provisions of the Decree, but merely in the recitals, it is highly likely that it will be considered by the labour courts in case of an eventual court claim.
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