Extension of Prohibition to Dismiss and Suspend

On July 29, 2020, Executive Decree No. 624/2020 (the "Decree") was published in the Official Gazette, ordering a new extension for 60 days of the prohibition to dismiss without just cause, and to dismiss and suspend employees due to lack or reduction of work and force majeure. Because of this new extension the ban totals 180 days.

Initially, the prohibition was established for 60 days by Decree No. 329/2020 dated March 31, 2020 and was later extended for the same term by Decree No. 487/2020 dated May 19, 2020.

Dismissals and suspensions in violation of this rule are void. However, the prohibition will not apply to contracts executed after the decree is in force.

Suspensions made under the terms of Section 223 bis of the Labor Contract Law remain exempt.