Following more than six months from the entry into force of the Labor Procedure Reform (LPR) we can state that its impact on the development of employment relationships has been noticeable.
The LPR is the most signiﬁcant reform of our Labor Code since its enactment back in 1943. This Code has certainly undergone some changes over the years, but none as important as the aforementioned Reform, which came into force in July last year.
In practice, we are already aware of several cases of letters of dismissal submitted before the Ministry of Labor as a result of the employee's refusal to receive them, as well as different matters concerning discrimination complaints and court decisions issued in connection with the new labor procedure; also, multiple services required by workers asserting their right to free legal aid, or the resolution of the ﬁrst collective dispute of economic and social nature processed by the aforementioned Ministry, which would probably become increasingly common in our country.
Based on this new reality, we should begin by asking ourselves about the speciﬁc actions that have been adopted by employers in order to meet the new requirements set by the above referred reform.
Undoubtedly, it is essential for each organization to determine the consequences that the LPR has on their employee management practices and regulations, so that their businesses may reach a high level of competitiveness and performance while also observing labor rights in an adequate manner. Some of the steps to be followed include:
- Conducting a due-diligence or review on their labor-law procedures and practices.
- Performing any internal adjustments as necessary (drafting of employment contracts, update of regulations, adoption of clear nondiscrimination policies, review of staff payments, or optimal management of relationships with vendors and professional services, among others).
- Staff training.
As we wait for the disclosure of consolidated data from administrative or judicial authorities, this period of a little over six months has been long enough to prove that the LPR has effectively led to a signiﬁcant change that created new labor practices both internally at workplaces and at administrative entities and courts nationwide.
Based on this, employers should understand that their businesses would improve to the extent they ensure proper compliance with labor laws, so that the decision-making process is preceded by an objective and dedicated assessment that may enable employers to mitigate risks of claims while also keep their businesses competitive.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.