Reform of employers' obligations

Reform of employers' obligations

Reform of employers' obligations

Published on september 21 , 2022

Foto de Roberto Ernesto Pascacio Rivera

Roberto Ernesto Pascacio Rivera - Legal Collaborator

On August 18, 2022, Decree No. 450 issued by the Legislative Assembly on July 19, 2022 and published in the Official Gazette No. 147, Volume 436, on August 10, 2022, entered into effect, regarding social security, consisting of the amendment to article 29 of the Labor Code, incorporating a new paragraph 10 and modifying paragraph 11.

Said amendment includes as an additional obligation of the employer, the obligation to register to the social security system the workers in probationary period and temporary workers, all in accordance with the Social Security Law and its Regulations.

The trial period referred to in the mentioned reform is regulated by Article 28 of the Labor Code, which in its first paragraph establishes that in individual employment contracts it may be stipulated that within the first thirty days, either party may terminate the employment contract without cause; and the temporary workers referred to in the aforementioned provision are those regulated in Article 87 of the Labor Code, which mentions that temporary workers do not have the right to job stability and therefore any of the parties may terminate the employment contract at any time, without expression of cause and without liability for any of the parties.

However, these provisions are not exempt from the provisions of Article 3 of the Social Security Law, which establishes the mandatory nature of the social security system for all workers who depend on an employer, regardless of the type of employment relationship that binds them. Therefore, the employers are obliged to pay the employee during the trial period and to the temporary workers, the salary and all the corresponding legal benefits. These provisions only release the employer from the severance payment referred to in Article 58 of the Labor Code, in the event of termination of the contract during the probationary period and the temporary contract period.

In conclusion, the purpose of this reform is to provide legal certainty in terms of guaranteeing social security to workers, regardless of the period of time or the work regime they perform.

For more information about how this may affect your company, please contact our specialized team at bvaldez@bvaldezlaw.com  or  benjamin@bvaldezlaw.com
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Last June, the new Instructions for the Prevention, Detection and Control of Money Laundering, Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction, issued by the Attorney General's Office (FGR), under the framework of the Anti-Money Laundering Law (LCLDA), came into force. In its Article 2, the LCLDA establishes that every person must submit information to the FGR that allows demonstrating the licit origin of any transaction he/she carries out. This leads us to conclude, then, that every person must prepare the manual and internal policies for the implementation of a money laundering prevention system, and the continuous development of these.

What is the difference between the new Instructions and the prevention systems elaborated before it came into force? Article 4 of the Instructions requires individuals to apply a risk-based approach, which consists of identifying, assessing and understanding the risks of their sector and operation, and applying resources aimed at ensuring that they are effectively mitigated. Therefore, it is necessary to update the manuals and policies that companies had developed in the past, so that they have a risk-based approach and comply with the new provisions.

From the manuals prepared, it is necessary to comply with other obligations, among them, to develop due diligence and KYC policies to identify the final beneficiary of the company's business relationships, to detect and mitigate all unusual or suspicious transactions and report them to the FGR (not only cash transactions), to train employees, to keep a historical record of the files analyzed, and above all, to appoint a compliance officer.

Why is it important to comply? Article 8 of the LCLDA establishes that, if there is any encumbrance due to negligence, impertinence or ignorance of the directors or employees of the companies, there will be a sanction of two to four years in jail.

Therefore, as a Firm we recommend:


We offer you our services, in order to comply with these legal obligations, so that your company has the peace of mind and support of a money laundering prevention system.

For more information about how this may affect your company, please contact our specialized team at bvaldez@bvaldezlaw.com  or  benjamin@bvaldezlaw.com