Friday, 30 September 2022 17:13

Employers who violate employee rights will be fined up to 12 minimum wages

Written by Evelyn Alas

The Labor Code establishes a penalty in case of non-compliance with the labor rights of employees, but since it is not equivalent to the damage caused to the affected party, the Labor Commission decided to watch over them and guarantee that employers comply with their obligations.

To this end, the deputies of the Labor Commission unanimously endorsed the reform of paragraph 1 of article 627 of the Labor Code, which deals with the fines imposed on employers who violate the rights of employees, since these have not been modified for 50 years and are not in accordance with reality.

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The parliamentarians explained that in the article the payment of these fines imposed for complaints of non-payment of vacations, severance pay, mistreatment or other abuses against employees is US$57.14.

If this proposal is approved by the legislative plenary, the offender will be fined up to 12 minimum wages for the industry, commerce and services sector for each of the benefits that have been violated. All of the above will depend on the size of the company, but without the payment of labor benefits not being complied with.

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For micro companies with up to 10 workers, the offender will receive a fine of up to two minimum wages for each of the benefits violated; while for small companies with more than 10 and up to 50 workers, a penalty of up to four minimum wages.

For medium-sized companies with more than 50 and up to 100 workers, the penalty will be up to eight minimum wages for each of the benefits violated, depending on the seriousness of the infraction, the intentionality and the damage caused.

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And companies with more than 100 workers, the fine will be up to 12 minimum wages for each of the benefits violated. This will also depend on the seriousness of the infraction, the intentionality and the damage caused.