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Decree on Firing Freeze

Presidential Decree No. No. 3.708 was published in Official Gazette No. 6.419 Extraordinary of December 28, 2018 (the “Decree”). The Decree established a fire freeze in favor of the workers of the public and private sectors for a period of two (2) years following the entry into force of the Decree. By virtue of the foregoing, the workers covered by the fire freeze may not be dismissed or transferred, nor may their employment conditions be worsened, without a justified cause previously approved by the Labor Inspector of their jurisdiction.

According to the Decree, the fire freeze will protect (i) workers hired for an undetermined period of time, after they have rendered services to an employer for one (1) month; (ii) workers hired for a specific period of time and for a period of time established in a contract; and (iii) workers hired for a specific work, as long as the performance of their obligation is not completed.

The fire freeze will not apply to workers of direction and casual or temporary workers.  The job security of public servants will be governed by the protection rules contained in the Law of the Statute of the Public Function.

The breach of the fire freeze prescribed in the Decree will entitle workers to demand reinstatement to their jobs, payment of salaries and other benefits not received, or restoration of the legal situation infringed,  by means of the actions established in the Decree with the Status, Value, and Force of Organic Law on Labor and Workers (“OLLW)”, within a period of thirty (30) calendar days following their dismissal, transfer, or worsening of  employment conditions; the processing of said demands will be given preference  over any other proceeding by the Labor Inspectors.

 

Also, any employer who obstructs or fails to obey the order of employment reinstatement and restoration of the legal situation infringed and any employer who breaches the fire freeze will be penalized, according to the Decree and the OLLW. 

 

The Decree became effective on December 28, 2018.

 

In order to access the Decree, 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.”