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Until next January the validity of the suspension regulations of the Employment Protection Law was extended.
This is indicated in the decree published by the Official Gazette, which also reports the extension to a tenth payment for workers who are still suspended by act of authority and have exhausted their previous drafts charged to the Solidarity Unemployment Fund.
The extension of the benefit responds to the power that the Executive has and that is expressed in the Law, to extend the transitory improvements incorporated in the Law of Protection of Employment and Unemployment Insurance for up to 5 additional months.
The sixth and seventh payments of the Unemployment Insurance and the Employment Protection Law are activated: Official gazette published the decree
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According to the Undersecretary of Labor, Fernando Arab, the decision to extend the payments is due to the fact that “there are still sectors that will not be able to return to their work activities mainly due to the health status of their communes.” For this reason, it is who said that “the employment protection law extends until January as well as the payments and benefits associated with it.”
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The government extended these benefits for three months (January 6, 2021). However, he does not rule out extending them for two more months – until the legal 5 months are completed – if the health situation does not give way and, on the contrary, the situation worsens.
In any case, it must be borne in mind that with this from the sixth round onwards, the percentage of the replacement rate will be located at 45% of coverage with respect to the total salary of that worker with upper and lower limits of $ 419,757 and $ 225 thousand respectively.
Nancy Ibacera, director of Tax & Legal at Deloitte, affirms that “this is good news in the context we are in: the economic situation and the current recession, coupled with the fact that the pandemic is still developing.” She adds that “there are many of these companies that today I am not able to reinstate their workers, or pay compensation, for which they are faced with quite complex situations.”
Diego Messen, lawyer and partner of Moraga & CIA. he notes that “it seems appropriate that the government make the law more flexible, whose beneficiary is the worker, adapting it to the advancement of health measures and the harmful effects that the global pandemic has had on the economy.”
