By means of Law No. 157 of August 3, 2020, the Law that establishes employment protection measures in companies affected by Covid-19 and dictates other provisions came into force.

It is important to note that the following provisions contained in this Act will be in force until December 31, 2020.

Employment Protection:

  • Prohibits hiring new employees in the same position as a suspended employee. Hiring can only be done in new positions.
  • Workers not reinstated will remain suspended.
  • Any termination of employment by mutual consent must be in writing and gives the employee two days to respond.
  • Dismissal or mutual dismissal during the three months following reinstatement obliges the employer to pay benefits immediately.

Suspension of Contracts

Contract suspensions may be extended on a month-to-month basis until December 31, 2020 and the employer may reinstate suspended employees on a gradual basis.

Thirteenth Month

  • Workers suspended from April to August will not receive their second 13th month but will be entitled to a bonus paid by the M.E.F. (amount not yet known). (The amount is not yet known).
  • Workers who have contracts with reduced working hours or who have worked part-time will receive their thirteenth month proportionally according to the calculations already established in the Labour Code.


  • The calculation of the time corresponding to maternity leave is suspended during the period of suspension of the effects of employment contracts.
  • The remaining time of the leave will be reactivated as soon as the worker is reinstated.


The calculation of the seniority premium and indemnity described in articles 224 and 225 of the Labor Code, respectively, for workers whose contracts have been suspended or for workers with reduced working hours, shall be calculated with the salaries received during the previous six months or the last monthly salary, prior to the declaration of the State of National Emergency, whichever is more favorable to the worker.

Mgtr. Nelisis Espino

Legal Services Director

Hawthorn & Hawthorn