21 March 2020 – Congress allows employers to reduce employee contactact hours if their revenue falls

Type of Intervention: Regulation
Sectors Involved: Finance/Economy, Private Sector
Level of Jurisdiction: National
Lead People/Agency: Congress and Ministry of Labour

Overview: Congress has approved Law 9832, through which employment contracts may be modified, with prior authorization from the Ministry of Labour and, if it is proven a decrease in the company’s gross income. If the decrease is at least 20%, the contract can be reduced by up to 50% of the hours. If the decrease in income is at least 60%, the contract can be reduced by up to 75% of the hours, wages are reduced in the same proportion. The worker does not need to agree to the reduction. The measure cannot be applied to pregnant or lactating women and the measure will last 3 months, renewable if the condition continues.
Full details here: https://www.nacion.com/el-pais/politica/diputados-aprueban-reduccion-de-jornadas-laborales/GTRCF4R4ZVCZ3LOR57NXBVEVWQ/story/

Type of Justification: Advice of INTERNAL government advisory committee or group
Evidence/Justification: To reduce the likelihood that employers will terminate contracts.