Law 31131: what is it and what were the benefits raised by the rule declared unconstitutional by the TC?

The Constitutional Court (TC) has just declared (by majority) unconstitutional Law 31131 which establishes provisions to eradicate discrimination in labor regimes, and which provided for the incorporation of workers with Administrative Services Contract (CAS) to labor regimes 276 and 728. Until this information was known, a total of 356,817 state workers who are under this labor regime they expected the TC to declare its progressive elimination legal.

What is and what does Law 31131 imply?

It is a law in force since March 10, 2021. Its purpose is to progressively transfer civil servants linked under the special regime of administrative contracting of services (CAS) and who carry out permanent tasks under the regime of Legislative Decree No. 728; or if they are hired by an entity, whose regime is that of Legislative Decree No. 276, the transfer of workers will take place under said regime.

How does this law impact the selection processes of the CAS Regime?

It impacts the personnel who are working in the public administration under the special labor regime of Administrative Contracting of Services (CAS), regulated by Legislative Decree 1057. It is obligatorily incorporated into the regime provided by the Labor Productivity and Competitiveness Law, regulated by Legislative Decree 728 and approved by Supreme Decree 003-97-TR.

As of Law 31131, in which cases was it possible to contract under the CAS Regime?

All public administration entities can hire personnel under the CAS regime, with the exception of state companies and public investment projects.

Public administration entities They include those of the Executive Power (ministries, public bodies, programs, projects, commissions), the Congress of the Republic, the Judicial Power, constitutionally autonomous bodies, regional and local governments, public universities, and other public entities whose activities are considered subject to common rules of public law.

How does the CAS Regime affect the worker?

According to the Congress of the Republic, the bases that support Law 31131 are based on the following:

• The CAS regime is precarious and unstable.
• There is no compensation for service times.
• You cannot do an administrative career.
• There is no protection against arbitrary dismissal.
• They do not have a preference or ability to obtain a bank loan.
• Among other affectations.

What requirements did Law 31131 establish for the transition from the CAS Regime to regimes 276 and 728?

For the incorporation into the labor regime of the Legislative Decree No. 728 or 276 As appropriate, workers hired under the CAS Regime should be those who meet the following requirements:

• Perform permanent work at the time of this law
• Have CAS contracts two years continuously or three years discontinuously

Benefits of Law 31131

According to the Congress of the Republic, this law would have the benefit of suppressing this type of contracts, thus closing the existing gap in human resources in the different State institutions that make up the public sector, since in these institutions, by their nature, the existence of workers who carry out activities on a permanent basis is necessary.

TC declares Law 31131 unconstitutional

The Constitutional Court declared today, Tuesday, November 30, 2021, unconstitutional (by majority) Law 31131 that establishes provisions to eradicate discrimination in labor regimes, and that provided for the incorporation of workers with Administrative Services Contract (CAS) to labor regimes 276 and 728.

For the TC, Law 31131 is unconstitutional because it not only contributes to the disjointed treatment and without due planning that still exists in the management of human resources in the State, but also, it has not had the backing of the Executive Power, which is competent to design and direct public labor policy, in exercise of its power to direct the general government policy.