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Special Temporary Labor Regime – Productive Reinvigoration

Through Resolution No. 9855 of July 19, 2016, published in Official Gazette No. 40.950 of July 22,  2016 (the “Resolution”), the Ministry of the Popular Power for the Social Process of Work resolved to establish a special temporary regime, with a mandatory and strategic character, for all public and private work entities of the country, of social and mixed ownership, in order for such regime to contribute to the productive reinvigoration of the agri-food sector, establishing mechanisms for temporary insertion of workers in the work entities subject to special measures implemented for strengthening their production.

The Resolution establishes that to that end, the constitutional and legal guidelines, principles, and purposes in the area of integral defense and security of the Nation, as an offensive against economic war, will be used as a basis, with the purpose of increasing and strengthening production in the work entities of social interest related to the agri-food sector.

The workers of the public and private sectors required for the execution of the purpose of the  Resolution will be under the effects of suspension of the employment relationship  and will be protected by firing freeze; therefore, they may not be dismissed and their original employment conditions may not be worsened without a justified cause duly proven through the Fault Qualification Procedure established in article 422 of the Decree with the  Status, Value, and Force of Organic Law of Labor and Workers.

The Resolution provides that the required workers of the private and public sectors are not bound to render services at the original work entity, nor are such entities bound to pay the salaries, during the time of the suspension; then, the requiring work entity will have to pay the salary.

The employer of the original work entity must continue to perform the obligations related to the contributions established by the Social Security System and must consider the seniority for the purposes of the Termination Benefits of the required workers, for the time of the suspension.

The requiring work entity will be under the obligation to pay the Socialist Cestaticket (food bonus) to the workers, per time of work.

According to the Resolution, after cessation of the suspension, the required workers will be entitled to continue to provide services at the original work entity in the same conditions existing on the date when the suspension occurred, except if due to an industrial accident or common disease he/she is disabled from performing his/her functions; in said case, the worker must be relocated by the original employer to a job that is appropriate to his/her new situation.

The required workers will provide their services to the requiring or requesting work entities for a period of sixty (60) days, extendible for an equal period of time, if necessary under the circumstances of the case.  

In order to access the Resolution, please click here.

 

“NOTE: THIS INFORMATION SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SPECIFIC MATTER AND ITS CONTENT ARE INTENDED AS A MANAGEMENT ALERT AS TO CURRENT DEVELOPMENTS IN VENEZUELA, ANY SPECIFIC LEGAL QUESTIONS REGARDING THE POSSIBLE APPLICATION OF NEW OR PROPOSED LEGISLATION TO PARTICULAR SITUATIONS SHOULD BE ADDRESSED TO TRAVIESO EVANS ARRIA RENGEL & PAZ.”