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ECONOMY | 19-05-2020 13:08

Government extends ban on unjust lay-offs for another two months

In a bid to secure jobs amid the coronavirus crisis, Fernández administration extends existing ban on dismissals without "just cause" until July 31.

The national government has announced an extension of its ban on unjust job dismissals for another 60 days, extending the prohibition until July 31.

The measure, first introduced as part of President Alberto Fernández's health emergency declaration at the end of March, originally banned companies from laying off staff  "due to force majeure or the lack or diminishment of work” for the next 60 days. The ruling has now been extended for a further two months, officials said Monday.

"In the context of the public emergency in economic, social and health matters, and with the aim of continuing to implement measures aimed at maintaining the income and employment of the population, the National Government has resolved to extend the prohibition against making dismissals without just cause, and due to force majeure or the lack or diminishment of work, for a period of 60 days,” Cabinet Chief Santiago Cafeiro said in a statement issued Monday.

Likewise, job suspensions for the same reasons have also been prohibited, with the exception of those agreed under the terms laid out "in Article 223 bis of the Labour Contact Law," the statement added.

Lay-offs were originally suspended for two months via March 31's DNU decree 329/2020, initially for two months. Though the measures was not set to expire until May 31, the government moved to extend the ruling after observing trends in employment. According to official data, registered formal employment in the private sector dropped by 0.5 percent in March compared to February, the sharpest contraction since the 2002 crisis. Officials expect April's data to be significantly worse.



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