The Law No. 31131, which progressively eliminates the Administrative Contracting of Services regime (CASE), was declared partially unconstitutional by the Constitutional Court (TC) this Tuesday, November 30. In a statement issued by the independent body, the magistrates’ appeal was expressed. Two days ago, Congresswoman Isabel Cortez said that the regulations of the referred law would be published before December 25.
In the following note, find out what the CAS contract comprises and what it refers to the legislative provision. In addition, the news regarding Law 31131, which proposed the end of the CAS Regime.
What type of contract is the CAS?
The CAS regime allows the State to contract workers supposedly temporarily, but they end up carrying out activities permanently. It is also a special modality of labor hiring that entered into force on June 29, 2008. Its validity was intended to solve the problem caused by the proliferation of non-personal services (SNP) in the public sphere. So, its application occurs only in state agencies.
The type of contract referred to is not within the scope of the public career (DL 276) or the private activity regime (DL 728). It is only governed by Legislative Decree No. 1057, its regulations and Law 29849, which establishes the progressive elimination of the CAS regime.
How is the CAS scheme different from Non-Personal Services (SNP)?
The CAS recognizes rights that are not supported in the HNS regime. Thus, the first provides certain rights to the second. in, for example, vacations for natural persons who carry out State work.
How long does the CAS Regime last and how many times can it be renewed?
The duration of the CAS regime cannot exceed the fiscal year in which the contract is made. In the words of the National Civil Service Authority (Servir): “The duration of the contract cannot exceed December 31 of the year in which the contract was made.”. It should be remembered that there is a trial period of three months.
If you have signed under the CAS modality, can be renewed as many times as necessary. There is no impediment except that the time cannot exceed the fiscal year and is subject to the budget availability of the entity.
What State entities can contract under the CAS Regime?
With few exceptions, any public entity can hire personnel following the CAS modality. Those singularities are state companies and public investment projects.
In more detail, the public administration bodies are: the Executive Power (ministries, public bodies, programs, projects, commissions), Congress of the Republic, the Judiciary, constitutionally autonomous bodies, regional and local governments, public universities and other entities. nationals whose activities are considered subject to common rules of public law.
What rights do CAS Regime workers have?
As mentioned, the CAS regime was created to provide fundamental rights that did not exist under the SNP modality. These are the benefits that the CAS then brought:
Monthly remuneration
It cannot be less than the current minimum salary (S / 930.00), but it cannot exceed the maximum established in Emergency Decree No. 038-2006 (equivalent to S / 15,600).
Workday
The maximum is eight hours a day, 48 hours a week and a weekly rest of at least 24 continuous hours. The employing entity registers the entry and exit of personnel to keep track of the hours actually worked and to verify overtime, such as the proportional discount. It should be noted that if overtime services are verified, the excess must be compensated with physical rest.
Holidays
Since April 7, 2012, the day on which Law No. 29849 came into force, CAS workers have 30 days of vacation after completing one year of service in the entity.
If the contract ends after the worker has completed one year of service and the vacation break has not been made, the worker will collect the corresponding payment. In case it concludes before, you will be entitled to payment for truncated vacations, which was in force since July 2011.
Training and evaluations
CAS workers are covered by the standards for performance evaluation and training issued generally for the public sector. The statement expressed is supported by Servir.
Pension system
Affiliation to a pension scheme is mandatory for people who enter the State to work after entering the CAS modality. In this case, the worker can choose either the private pension system (SPP) or the national pension system (SNP).
EsSalud
The worker has the right to join the EsSalud contributory scheme. This coverage also extends to your beneficiaries.
Pre and post natal rest
Workers hired under the CAS regime have the right to pre (49 days) and postnatal (49 days) rest for 98 days. As a complementary right, they are entitled to leave for breastfeeding until their child is one year old.
Paternity leave
Workers have the right to paternity leave when a child is born, be it from their spouse or partner. Since 2018, the leave is for ten consecutive and paid calendar days.
Aguinaldo
You have the right to receive a Christmas and National Holiday Christmas bonus, in accordance with the amounts established in the annual budget laws of the public sector.
How does the CAS Regime affect the worker?
The CAS hiring format is precarious and unstable, according to the legislative initiative published by the Congress of the Republic, therefore, it affects the worker in the following way:
Race line
In the CAS Regime there is no compensation for time of service and no administrative career can be done due to the absolute labor instability posed by these contracts. For instance, You can work with a CAS contract for 20 years and, by the same format, you can dismiss the worker without benefit of bonuses.
Subject to Income Tax
There is no preference for obtaining bank or real estate loans to buy a house or apartment.
Arbitrary dismissal
There is no protection against arbitrary dismissal, which violates article 27 of the Constitution. Being hired by CAS means, then, according to what is proposed within the bill of Congress that justifies the existence of Law 31131, to be an uncertain wage earner.
What did the TC say about the Law that proposes the elimination of the CAS Regime?
The plenary session of the Constitutional Court (TC) declared, by majority, Law 31131 partially unconstitutional, and its articles 1,2,3,5 and final complementary provisions on November 30, 2021. The body appeals that it refers to a disjointed treatment and without due planning still subsisting in the management of human resources of the State. Along these lines, he stressed that the law has not had the backing of the Executive Power.
“By ordering the incorporation of the servers of the CAS regime to legislative decrees 276 and 728, it is unconstitutional for violating the provisions of the Constitution regarding: the prohibition of congressmen to create or increase public expenditures (Article 79), the principle of budgetary balance (Article 78) and the competence of the Executive Power to ‘administer the public finances’ (Article 118, paragraph 17) ”, reads a statement from the Institutional Image Office.
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Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
