The current health crisis has brought about a genuine shift in our system of economic, labor, and social relations. Therefore, today—just days before May 1st, International Workers’ Day—we have prepared a special report analyzing, one year after the COVID-19 pandemic, the current state of labor law in Latin America. Argentina, Colombia, Chile, Spain, Peru, and Mexico have had to adapt to new regulations and reforms in their legal frameworks. But what do these laws entail? What are the most significant changes in labor matters over the past year? And where do these laws stand in terms of achieving true and substantive equality between men and women?
This is the first of two installments in which labor law experts such as María Orio González, partner at the internationally structured firm Abdón Pedrajas Littler (Spain); Jorge de Presno, partner at Basham, Ringe y Correa, SC (Mexico); Francisca Corti Viviani, partner at Carey (Chile); Santiago Martínez Méndez, partner at Godoy Córdoba (Colombia); Enrique M. Stile, partner at Marval, O’Farrell & Mairal (Argentina); Julio Villalobos, senior associate at Miranda & Amado Abogados (Peru); and Iñigo Sagardoy, president of Sagardoy Abogados (Spain) discuss how labor laws have evolved in their respective jurisdictions, talk about the principles that govern labor law, and what the differentiating factor is between the legislations.
What is the basis of labor law in your country?
María Orio González, partner at Abdón Pedrajas Littler (Spain): “The main source of labor law in Spain is the Workers’ Statute (Royal Legislative Decree 2/2015, of October 23). In addition, as a specific source of labor law, we find Collective Bargaining Agreements, which, as regulations resulting from collective bargaining between companies and workers, govern and establish the working conditions and applicable legal framework within their respective areas of application (sector, company, etc.)
Similarly, and considering the various subjects encompassed by labor law, we would find other laws and regulations, such as the General Social Security Law (Royal Legislative Decree 8/2015, of October 30), the Occupational Risk Prevention Law (Law 31/1995 of November 8), and other implementing regulations, such as those relating to special employment relationships, such as senior management, lawyers, etc.
All of this is done with absolute respect for the Spanish Constitution, which, as the supreme law of our legal system, includes a series of precepts of a labor nature, as well as general principles applicable in the field of work.”
Jorge de Presno, partner at Basham, Ringe y Correa, SC (Mexico): “Mexico’s Federal Labor Law is a law that applies throughout the national territory but is divided for its jurisdiction regarding the resolution of conflicts in branches of industry; that is, there are some branches of industry whose application is reserved to the federation and therefore the conflicts in which they are involved will be resolved in federal courts and the others are reserved to the states and consequently will be resolved in the courts of the states.
The Federal Labor Law of Mexico, since its promulgation on May 1, 1931, has been a protectionist law, guaranteeing the rights of workers and seeking their vindication and protection. However, it does not fail to consider the rights of employers as promoters of employment and, of course, guarantees job stability, which is the guiding principle of labor law in Mexico.
Francisca Corti Viviani, partner at Carey (Chile): “The main body of labor law in Chile is the 1994 Labor Code. This Code regulates the main provisions relating to workers’ rights, individual employment contracts, unions, collective bargaining, and labor court procedures. In addition, there are numerous special laws, statutes, and regulations that govern specific matters, such as the work of public employees, social security benefits, workplace accidents and occupational diseases, and occupational health and safety measures, among others.”
Santiago Martínez Méndez, partner at Godoy Córdoba (Colombia): “Our supreme law is the 1991 Political Constitution, which enshrined Labor Law into the constitution, including fundamental rights such as work, association, collective bargaining, social security, and labor principles such as the minimum living wage, the principle of substance over form, and maternity protection, among others. Along the same lines, we should add the constitutionality rulings on labor laws, which always enrich the legal framework, as well as the rulings on protective actions that drive trends, and the ILO conventions, which, through the dual system, become part of domestic legislation. We have ratified international treaties that form part of the constitutional bloc (the essential ones concerning human rights that cannot be restricted in a state of emergency) and the legal bloc.”
At the legal level, in the private sector, we have the Substantive Labor Code (applicable since 1951), which is the overarching law that systematically and harmoniously compiles all legal regulations on labor matters, leaving a few out of this code. There is a single regulatory decree on labor matters, Decree 1072 of 2015, which compiles dozens of regulatory decrees.
Enrique M. Stile, partner at Marval, O’Farrell & Mairal (Argentina): “First of all, it is worth noting that Argentine labor law is based on a general principle, which is the “protective” principle. From this principle stem other principles that regulate the matter, such as: the principle of interpretation in favor of the worker, the principle of primacy of reality, the principle of the most favorable standard, and the principle of equal treatment, among others.
The Argentine Constitution is—naturally—the highest-ranking law, and it contains certain declarations, guarantees, and fundamental rights, including the freedom to work; dignified and equitable working conditions; a limited workday; a minimum living wage; paid rest periods and vacations; equal pay for equal work; and the right to associate and form unions, among others. Likewise, human rights treaties ratified by Argentina have constitutional status, and other international treaties have a higher legal standing than domestic laws.
Regarding the order of precedence, a lower-ranking regulation can only modify a higher-ranking one to the extent that it improves the worker’s position. The Employment Contract Law No. 20,744, published in May 1976 (“LCT”), governs most labor relations in Argentina. However, other workers, such as those in the public sector, domestic service, and rural workers, are, in principle, excluded from the application of the Employment Contract Law and have their own specific statutes. Nevertheless, in the latter two cases, the Employment Contract Law applies in a complementary manner if it is compatible.
Furthermore, depending on the specific activity, special statutes may apply. These statutes contain the general regulatory framework for particular activities (e.g., construction), and the Employment Contract Law No. 20,744 also applies, provided its provisions are compatible with the nature and modalities of the activity in question.
Also, with regard to specific activities, collective labor agreements serve as a source of regulation.
In addition, there are other labor laws applicable to labor relations: the Occupational Risks Law No. 24,557 and amendments, the Working Hours Law No. 11,544, the Collective Bargaining Law No. 14,250, the Trade Union Associations Law No. 23,551, the National Employment Law No. 24,013, among others of great importance.”
Julio Villalobos, senior associate at Miranda & Amado (Peru): “Labor law in Peru is based on regulations created by the Executive Branch (Government) or the Legislative Branch (Congress). These regulations are interpreted or applied at the administrative level by the National Superintendency of Labor Inspection (SUNAFIL) and at the judicial level by the Labor Courts and Chambers.”
Iñigo Sagardoy, president of Sagardoy Abogados (Spain): “It is based primarily on the Spanish Constitution, the Workers’ Statute, community regulations (European Union) and the various collective agreements that are negotiated, applying the previous regulations, both sectoral and company-level.”
Experts say there are many similarities in terms of employment regulation across Latin American countries. In Chile, for example, labor law has a markedly protectionist nature, as do those of Argentina, Mexico, and Spain, while in Colombia, on the contrary, there is “overregulation.” But how do they differ?
Iñigo Sagardoy, president of Sagardoy Abogados (Spain): “Due to the close cultural relations existing between Spain and the countries of Latin America, it is difficult to determine what element differentiates Spanish labor regulations from those of the countries of Latin America.
Nevertheless, one of the key aspects of Spanish labor law, and what sets it apart from Latin American countries, is that it is linked to EU regulations which, through a clear harmonizing trend, seek to create a common labor market and working conditions in all the countries that make up the European Union.
Julio Villalobos, senior associate at Miranda & Amado (Peru): “There may be several differentiating factors: (i) Peru probably has one of the highest labor costs in Latin America, (ii) there is little flexibility for the termination of employment relationships, since the worker’s first option is to request reinstatement to their job, and (iii) there is a high degree of rigor in the regulation for the use of temporary contracts.”
Enrique M. Stile, partner at Marval, O’Farrell & Mairal (Argentina): “Generally speaking, there are many similarities in terms of employment relationship regulations across the various Latin American countries. This essentially depends on the country with which we make the comparison, since, for example, Brazil’s regulatory framework was essentially quite similar to Argentina’s, but it has undergone changes recently that have altered this dynamic.
One of the features of Argentine labor law that is not very common is the severance pay system in case of dismissal. According to local law, the entire period of employment is considered when calculating severance pay. In other countries, only the last 10 years of service are typically taken into account.
Notwithstanding the foregoing, we consider that the most typical and distinguishing feature of the Argentine labor system is the National Employment Law No. 24,013. This law dates from 1991 and aimed to regularize unregistered employment. Among its various provisions are increased compensation penalties for the lack of or inadequate registration of the employment relationship.
(a) No registration: -25% of the total remuneration accrued since the beginning of the employment relationship, calculated at adjusted values. In no case may it be less than three times the highest normal and usual monthly remuneration of the worker. (b) Inadequate registration: -From the date of entry: 25% of the total remuneration from the actual entry date to the incorrectly registered date. -From the salary: 25% of the portion of remuneration accrued and not registered.
Likewise, if the worker is dismissed or considers himself wronged and dismissed without just cause, within two years of having issued the formal notice to register the relationship or to do so correctly, he/she will be entitled to receive double the compensation for dismissal.
It should also be noted that, in light of recent case law, certain work tools such as cell phones and/or cars, insofar as they can be used for personal purposes, have been considered part of the employee’s remuneration. Therefore, if they are not registered as such, the aforementioned enhanced compensation becomes applicable. This, among other factors, has substantially increased claims related to Law 24.013.
Santiago Martínez Méndez, partner at Godoy Córdoba (Colombia): “Perhaps over-regulation. We want a rule for everything. Some countries don’t even have rules on work outside the office; in Colombia we have: home-based work; teleworking; remote work (pending regulatory decree); work from home (soon to be sanctioned by the president of the republic); and virtual work is currently under legislative review.
It’s not something to be proud of, as there’s a clear consensus that more developed countries have fewer regulations. Excessive regulation creates confusion, legal instability, and (perhaps among the few positive aspects) more work for us lawyers.
Francisca Corti Viviani, partner at Carey (Chile): “Generally speaking, Chilean labor law does not differ significantly from labor law in the rest of Latin America. As in other countries in the region, Chilean labor law has a strong protective nature regarding workers’ rights, given the asymmetry between the parties in the employment relationship. The main peculiarities of Chilean legislation compared to that of other neighboring countries are likely related to the existence of certain mandatory additional payments beyond salary (such as bonuses or the so-called “semana corrida”), the existence of a very detailed, regulated collective bargaining process, and the presence of numerous mandatory social security programs that cover everything from traditional contingencies such as old age, disability, illness, and death to more specific ones like paid leave for accompanying children and adolescents with serious health conditions.”
Finally, as a consequence of the interpretation of our courts, the dismissal system has become extremely restrictive and demanding, even in comparison with other Latin American legislations.”
María Orio González, partner at Abdón Pedrajas Littler (Spain): “Our labor law system has, from its inception, a protective and safeguarding character for workers. However, over the years, this has been nuanced by the Spanish Constitution and other regulations enacted throughout the years, which govern the rights and obligations of the parties in labor matters. I would highlight, as an important point, the promotion and implementation of collective bargaining.”
Jorge de Presno, partner at Basham, Ringe y Correa, SC (Mexico): “The differentiating factor is that Mexico’s Federal Labor Law, until a few years ago, had not evolved; that is, it continued to have that protectionist character and focus on upholding the rights of the working class, while the vast majority of Latin American legislation, such as Chile’s, primarily, as well as Argentina’s, Colombia’s, Brazil’s, and Peru’s, have evolved to achieve a balance among the factors of production. For example, the vast majority of labor laws in Latin American countries, especially those in Spanish-speaking countries and the Caribbean, are inspired by the Mexican Federal Labor Law; so much so that Panamanian law remains almost a copy of ours before the latest reforms.”
The first change was on December 1, 2012, and more recently on May 1, 2019. As a result of the pandemic, various additions have been made regarding teleworking and modifications to the subcontracting regime, but the differentiating point is precisely its lack of evolution in the sense of being more equitable between the parties in an employment relationship.
With 40 years of experience representing companies, I have never ceased to recognize that workers and unions have rights and these rights must be guaranteed. What we must not do is go back to the origin of the defense of workers’ rights as if it were a series or kind of class struggles. It must be recognized that the parties in an employment relationship are complementary to guarantee the stability of the employment relationship and, of course, the well-being of the workers and the employer.
I believe that Mexican law is quite fair; it just needs to evolve a bit. It is a correct law that has recently been reformed so that what could be seen as abuses or deviations can be corrected.”
What are the three trends and regulatory reforms that have occurred in the last year?
Jorge de Presno, partner at Basham, Ringe y Correa, SC (Mexico): “I’m going to talk about the last three years, 2019, 2020, and 2021. Since 2019, there have been very important changes to Mexican labor law. Almost all legislation is enacted or amended on May 1st, as this date is International Workers’ Day. On May 1, 2019, the Federal Labor Law was completely modified regarding the labor justice system,[/ justicia laboral,] that is, the so-called conciliation and arbitration boards, which were the former labor courts that were not dependent on the judiciary but on the administration, have been gradually replaced. In this process, we find labor courts that are part of the federal judiciary or the state judiciaries. This is very important because now labor justice will be administered by the judiciary.” constitutionally designed to administer justice, which is the judicial power, federal or of the states.
Another is the freedom of association and the legitimization of collective bargaining agreements. Workers, and not just unions as before, will have the right to elect their union representatives. They will have the right to elect them under the terms and conditions of their collective bargaining agreements, and these agreements must be legitimized before a new body created by this reform: the Federal Center for Conciliation and Labor Registration. This important organization will oversee labor conciliation and also the registration of unions or movements that internally affect union life. But above all, the most important aspect is the freedom of association for workers, who will have the right to join or not join a union without losing their jobs. As mentioned, they will also have the power and the right to ratify or elect their union leaders and to determine the content of their collective bargaining agreements.
Later in 2020, as a result of the pandemic, the reform regarding teleworking was made, a necessary reform that was enacted in 2021, since teleworking existed in Mexico, but in a very rudimentary way.
And the last, and perhaps most important I believe, is the one that attacks certain vices that had been occurring in Mexico in relation to subcontracting; that is, the subcontracting of services, the so-called “outsourcing”, was regulated in such a way that only specialized services can be subcontracted, understood as those that are not part of a main corporate purpose or the predominant activity of the one who requests those services.”
María Orio González, partner at Abdón Pedrajas Littler (Spain): “In the last year, the regulatory reforms that resonate the most, we could say, are those relating to the regulation of remote work, through the recent Royal Decree-Law 28/2020, of September 22.
Likewise, the new regulation of the Equality Plans through Royal Decrees 901/2020, of July 13 and 902/2020 of October 13, for the purpose of developing the equality plans and the corresponding obligations in accordance with the provisions of Organic Law 3/2007, of March 22, which in turn incorporates very significant changes through Royal Decree-Law 6/2019, on urgent measures to guarantee equal treatment and opportunities between women and men in employment and occupation.
Likewise, all the regulations deployed due to COVID-19, such as RD.8/2020, of March 17, on urgent extraordinary measures to address the economic impact of COVID and which implemented measures to make the temporary adjustment mechanisms of activity more flexible to avoid layoffs (ERTEs), and other additional measures.
And finally, another significant change has been the mandatory daily recording of working hours by companies, which must include the start and end times of each employee. This documentation must be kept for four years and made available to employees, their legal representatives, and the Labor and Social Security Inspectorate. This obligation was incorporated as section 9 of article 34 of the Workers’ Statute through Royal Decree 8/2019 of March 8, on urgent measures for social protection and the fight against precarious employment during working hours.
Santiago Martínez Méndez, partner at Godoy Córdoba (Colombia): “Work outside the employer’s premises, which as mentioned has occupied a large part of the country’s legislative agenda.
Working Hours and Disconnection: A bill is currently progressing that seeks to reduce the maximum legal working hours to 48 per week. All indications are that it will be approved, which is positive from the perspective of work-life balance, but it raises serious doubts about its advisability, as it implies greater obstacles to formalization in a country where the majority of workers are in the informal sector due to the barriers that micro-entrepreneurs face in becoming formalized.
Trends on strikes according to Supreme Court rulings: However, our legal system is clear in defining types of strikes and their procedure, based on its interpretation of non-binding Recommendations, important debates have been generated at the national level about the types of strikes and the absence of regulation on them, which we have called “strikes without rules”.
Enrique M. Stile, partner at Marval, O’Farrell & Mairal (Argentina): “The three most relevant trends and regulatory reforms of the last year are:
Teleworking Law. On August 14, 2020, the new Teleworking Law, enacted by the National Congress, was published in the Official Gazette. This law incorporates the teleworking contract, which it defines as one in which work is performed, services are carried out wholly or partially at the employee’s home, or in locations other than the employer’s premises, through the use of information and communication technologies. For this type of contract, the Teleworking Law establishes a series of rights, including the right to digital disconnection (i.e., the right not to be contacted outside of working hours), the voluntary nature of this work modality, the right to establish work schedules compatible with childcare, and the right to revoke consent to work in this modality, a right known as reversibility. The law also establishes certain obligations for employers, such as providing the necessary work equipment and covering installation costs, compensating employees for connectivity and service expenses, and requiring companies that implement this work modality to register with the Ministry of Labor. The Telework Law came into effect on April 1, 2021.
Doubling of Severance Pay. Based on the economic emergency, on December 13, 2019, the Government issued Decree of Necessity and Urgency No. 34/2019, which mandated the doubling of all severance pay resulting from dismissal without cause. This doubling was successively extended throughout 2021. The most recent extension was established by Decree of Necessity and Urgency 39/2021, which stipulated that, for the purpose of calculating the final severance pay, the amount corresponding to the doubling may not exceed AR$500,000 under any circumstances. It also established that the doubling of severance pay would not apply to cases of dismissal where the employment relationship began after December 13, 2019. This new system will remain in effect until December 31, 2021.
Prohibition of dismissals. On March 31, 2021, in the context of the health crisis caused by the COVID-19 pandemic, the Government issued Decree of Necessity and Urgency No. 329/2020, which prohibited the notification of dismissals without just cause or due to lack or reduction of work, as well as the prohibition of carrying out suspensions due to lack or reduction of work and/or force majeure, with the exception of suspensions carried out under the terms of article 223 bis of the Employment Contract Law. After successive extensions, Decree of Necessity and Urgency 39/2021 again extended the prohibition until April 25, 2021, and stipulated that dismissals and suspensions of workers whose employment relationship began after December 13, 2019, are not subject to the prohibition. The Decree also introduces an exception to the dismissal prohibition: dismissal without cause, provided the employer notifies the dismissed worker and the dismissal’s validity is not challenged. In this case, the dismissed worker is entitled to receive double the severance pay they would otherwise receive, up to a maximum of $500,000.
Iñigo Sagardoy, president of Sagardoy Abogados (Spain): “In the last year and due to the special situation in which we still remain, three legal-labor matters have been introduced or reformed in our system.
These three reforms have taken place on the following matters:
1. Temporary Employment Regulation Files; 2. Remote work in its specific modality as “Teleworking” and; 3. Equality plans and equal pay.
Firstly, regarding Temporary Workforce Adjustment Plans (ERTEs), the government has issued a series of royal decrees to prevent job losses and business closures. While it is true that ERTEs were already included in Spanish labor law before the pandemic, their role has become increasingly important as a result of this crisis.
Currently, there are five types of temporary layoff schemes (ERTEs) that can be requested:
– Temporary layoffs (ERTEs) due to force majeure related to COVID-19 that were in effect as of January 27, 2021, and may request an automatic extension until May 31, 2021. – Temporary layoffs (ERTEs) due to outbreaks that may remain in effect either through express favorable resolutions or by positive administrative silence until May 31, 2021. [– ERTE por causas ETOP vinculadas con la COVID-19. Estos ERTE´s podrán seguir aplicándose en los términos de la comunicación final y hasta el término que tengan establecido. Cuando exista acuerdo con los representantes de los trabajadores su duración podrá ser prorrogada, teniendo como fecha límite hasta el 31 de mayo, siempre y cuando comuniquen esta decisión a la autoridad laboral.]- Temporary layoffs (ERTEs) due to economic, technical, organizational, or production-related reasons (ETOP) related to COVID-19. These ERTEs may continue to be applied under the terms of the final communication and until their established end date. When there is an agreement with the workers’ representatives, its duration may be extended, with a deadline of May 31, provided that this decision is communicated to the labor authority. [– ERTE por causas ETOP vinculadas con la COVID-19. Estos ERTE´s podrán seguir aplicándose en los términos de la comunicación final y hasta el término que tengan establecido. Cuando exista acuerdo con los representantes de los trabajadores su duración podrá ser prorrogada, teniendo como fecha límite hasta el 31 de mayo, siempre y cuando comuniquen esta decisión a la autoridad laboral.] [– ERTE por Impedimento. Estos ERTE´s podrán seguir vigentes en los términos establecidos por las resoluciones estimatorias expresas o por silencio administrativo positivo hasta el 31 de mayo de 2021.]- Temporary Layoff Plan (ERTE) due to Impediment. These ERTEs may remain in effect under the terms established by express favorable resolutions or by positive administrative silence until May 31, 2021. [– ERTE por Impedimento. Estos ERTE´s podrán seguir vigentes en los términos establecidos por las resoluciones estimatorias expresas o por silencio administrativo positivo hasta el 31 de mayo de 2021.] [– ERTE por Limitación. Aquellos ERTE´s que siguieran vigentes por limitación podrán seguir manteniéndose, teniendo como fecha final de prórroga el 31 de mayo.]- Temporary Layoff Plan (ERTE) due to Limitation. Those ERTEs that remain in effect due to limitation may continue to be maintained, with a final extension date of May 31. [– ERTE por Limitación. Aquellos ERTE´s que siguieran vigentes por limitación podrán seguir manteniéndose, teniendo como fecha final de prórroga el 31 de mayo.]
In addition, new ERTEs related to the pandemic can be requested, motivated by an ERTE due to Impediment from February 1, 2021 until May 31, 2021 or an ERTE due to Limitation from and until the same dates established for the ERTE due to Impediment and the request for a new ERTE due to ETOP causes related to Covid-19 until May 31, 2021.
Among the main changes that have occurred in the latest regulatory standard on this matter, Royal Decree-Law 2/2021, of January 26, on the reinforcement and consolidation of social measures in defense of employment, we find:
– The possibility of transitioning between Temporary Layoff Plans (ERTEs) due to Impediment and ERTEs due to Limitation. – The exemption for companies from paying part or all of their Social Security contributions. – The company’s commitment to maintain employment for six months through the job safeguard clause, with these periods being cumulative.
Secondly, regarding teleworking, a significant step has been taken, perhaps not enough, but a significant step nonetheless. With respect to new forms of work, the entry into force of Royal Decree-Law 28/2020, of September 22, on Remote Work, seeks to establish the foundations for a way of working that is becoming increasingly common. This regulation replaces perhaps outdated legislation and represents a paradigm shift in relation to the use of ICTs by workers and the consolidation of rights such as the well-known “right to digital disconnection.”
Regarding the general content of this new regulation, it should be noted that the Remote Work Agreement is voluntary for employees who provide services on-site and can be revoked. The regulation emphasizes that the employer is obligated to cover any expenses incurred by the employee while working remotely. Furthermore, the employer is responsible for providing the employee with the necessary resources for the effective performance of their duties, including the appropriate adaptation of the workspace to comply with occupational health and safety regulations.
The third major labor reform in Spain has focused on equality. In October 2020, two royal decrees came into force: RD 901/2020 on equality plans and RD 902/2020 on equal pay. These regulations aim to reduce the gender pay gap and establish procedures to prevent potential instances of harassment based on sex and sexual harassment in the workplace.
Julio Villalobos, senior associate at Miranda & Amado (Peru): “The most important regulations in Peru in the labor field, issued in the last year, have to do with remote work, which implies that workers carry out their activities from their homes as a result of the Covid-19 pandemic and with digital disconnection, which sets a series of guidelines for workers to remain disconnected from any digital, virtual or technological tool with which they carry out their activities, outside of their working hours.
Another important reform has taken place in the agro-industrial sector with the entry into force of the Law of the Agricultural Labor Regime”.
Francisca Corti Viviani, partner at Carey (Chile): “Probably the most significant labor reform of the last year came with the publication of Law No. 21,220 on teleworking or remote work in April 2020, which amended the Labor Code to regulate remote work, significantly transforming the way these employment relationships had been developing. The enactment of this law was particularly important because, as a result of the pandemic, many workers began providing services remotely, which prompted the incorporation of a series of obligations applicable to employers who chose—or found themselves needing to—implement this work modality.”
Thus, for example, the right to disconnect was regulated to at least 12 continuous hours, along with the provision of work tools and the payment of equipment operating costs, and new obligations regarding hygiene and safety, among other changes. Furthermore, during 2020, and as a consequence of the severe economic situation experienced by the national and global economy due to the pandemic, Law No. 21,227 was enacted with the objective of protecting employment in Chile, within the framework of a series of emergency measures adopted by the Chilean authorities. Indeed, provided the requirements established by the law were met, employers had and still have the option of suspending employment contracts or reducing working hours, allowing workers during this period to make an exceptional withdrawal of the corresponding unemployment insurance funds.
Finally, on April 20, 2021, Law No. 21,325 on Migration and Foreigners was published, modernizing and reforming the immigration system in our country. Among the new features of this law is the express recognition of the labor rights of foreigners, acknowledging their equal rights with Chilean workers, even in the event of an irregular immigration status of the hired foreigner.
