What does it mean for Colo Colo to suspend its employment relationship with the players? | Hit Albo

Blanco y Negro announced that it will suspend the employment relationship with Colo Colo players after failing to reach an agreement to cut wages. The campus was willing to receive less, but they wanted a refund of everything that will be discounted from 2021.

“The law obliges us to suspend the employment relationship, therefore, once notified, the players no longer have an employment dependency. As of today, and until soccer returns, Colo Colo players have no contractual situation with us, “said Harold Mayne-Nicholls.

But what does the Employment Protection Act mean that Colo Colo seeks to benefit from? “It is a law to be able to survive and function. The logic is to lower costs for a limited time and then raise them again assuming that everything reaches relative normality. It has nothing to do with bankruptcies, because although they are on the rise because there is no money, it is a situation where society ceases to be a society due to lack of resources. To avoid that society does not just disappear, they take advantage of this Employment Protection Law ”, explains Ignacio Figueroa, trial lawyer of the Juan Agustín Figueroa V.

It also mentions which are the points of debate around this regulation. “It can be considered a law that does not protect the worker, because he begins to earn less and through insurance, others consider that if they protect the worker because you do not fire him. The company has two options: you lower the workers’ salary or suspend the contract. Colo Colo will stop paying wages for a time and will have to collect it in the unemployment insurance with the rules of this insurance. They feel that they protect employment, because it gives society time to make cash to pay ”he added.

He added that “The biggest criticism of this law is that workers are paid that they have saved themselves. Why? Every month they quote you a part of your salary and keep it in a fund. So when you run out of individual savings you ask for it in a solidarity fund. The idea is that the first month they can pay you 70% of your remuneration, the second 60% and it will continue to drop ”.

But what does it mean to suspend the employment relationship in this case with the players? “Colo Colo is no longer responsible for the salary of the players, but must continue to pay contributions and they no longer have the obligation to work. The suspension is for a certain period and while this lasts, the workers must manage how to receive their insurance. When the term expires, the players show up to train and the club must receive them and pay their salaries again ”, he detailed.

Many question how a large club like Colo Colo can reach this situation despite generating so many resources. For Figueroa the explanation happens because “It is possible that he ran out of box. An institution may have a thousand assets, but it may not have money to pay its wages, that means they are without liquidity. If they do not pay their obligations, they can ask you for bankruptcy and that is the great drama of many today, who have no cash. ”.

In any case, Colo Colo will have to justify its finances in order to avail itself of this measure, or it could face millions of fines. “The law does not distinguish what type of companies can benefit from this, but the authority has said that the abusive use of this regulation by companies that continue to receive income relatively normally, may be subject to fines and even criminal investigations. . The other day the labor minister said that the clubs receive the CDF silverware and that, in her opinion, means that they should not comply with the standard ”, full.