Five bills that specify and modify labor standards were presented, on September 29, by the Popular Action bench and as an initiative of the current president of the Congress of the Republic, María del Carmen Alva.
The legislative proposals that make up a new labor reform package have as co-authors the acciopopulista legislators José Arriola, Pedro Martínez, Silvia Monteza, Luis Aragón, Hilda Portero and Carlos Zeballos. The projects await to be debated in the Congressional Work Commission from October 6. What are these legislative initiatives?
PL that unifies salary with bonus and other benefits
The first of the five bills (PL-00316/2021) allows employers to change the form of payment of bonuses to workers who earn less than 2 UIT (S / 4,400). In this sense, it proposes regulating labor benefits — such as bonuses, vacations, among others — as part of the worker’s compensation.
This means that the bonus payments would be divided and delivered on a fixed term as part of the monthly remuneration, with the exception of the Compensation for Time of Services (CTS) and utilities. The project indicates that its implementation would bring two benefits: an increase in the monthly cash flow for the worker and a lower need for liquidity in July and December for the employer.
However, currently this form of bonus payment is already in the Labor Productivity and Competitiveness Law. The employer can agree with those workers who earn more than 2 UIT “a comprehensive remuneration computed per annual period, including benefits.” In other words, this project would allow not only workers with a higher salary of 4,400 to unify their salary, but also those who receive a lower amount.
Likewise, this division, both the CTS and the bonuses, are already included, after agreement between the employer and the worker, within the daily payment to agricultural workers.
In this regard, the lawyer specialized in labor matters Raúl Saco explained to PerúCheck that the bonuses respond to a need of the workers for higher spending that occurs in July and December. For this reason, if this labor right disappears —when it is diluted as part of the monthly salary— “it loses its reason for being, the reason for its existence”.
In addition, this measure although “pretends to be a discharge to the economy of the companies”, with time it will return “like a boomerang”. “By way of the claims and collective bargaining sheets, the workers will again ask for bonuses for National Holidays and Christmas,” he said.
On the other hand, the expert in labor rights Germán Lora told this media that the greatest benefit that the employee would obtain with this legislative initiative would be the move to formality. Along these lines, he stressed that the reward “will be received every month.”
“It is the same, the bonus is distributed if the worker wants. In addition, they will have minimum remuneration, bonus, CTS, social security, AFP, licenses, all the benefits of an employment relationship ”, he stressed.
It should be noted that Colombia is another country in the region that, as explained in a report by the Colombian media La República, has in its regulations the integral annual remuneration —the labor benefits included in the monthly salary— as a form of payment to workers.
PL on termination of employment
The second Popular Action project (PL-00317/2021) allows the employer to “terminate the employment relationship of a number of workers less than 10% of the total of company people ”for reasons related to the operation of the company. In other words, the proposal would allow companies to collectively or individually dismiss a number of workers below 10% of the total number of employees hired. Currently, this amount must exceed 10%.
The causes for the termination of a contract are: fortuitous event and force majeure; economic, technological and structural reasons; dissolution and liquidation of the company; and, bankruptcy or equity restructuring.
According to the PL, a benefit would be to avoid the closure of the company or its deterioration that, according to the initiative, would generate more layoffs. Likewise, it is indicated that it would allow competitive conditions to exist for companies and that it would facilitate the development of the labor market.
As part of its arguments, the bill indicates that the labor rights of workers will not be affected because “the power to terminate an employment relationship is subject to the existence of an objective cause”, which corresponds to the current regulation. In addition, it adds that without the necessary minimum percentage, “the right to freedom of business, understood as the power to organize according to the requirements of its activity, materializes.”
However, for Raúl Saco, the initiative can lend itself to abuse and increase the possibility of termination, “even more in times of pandemic”, Because it broadens the possibility of dismissal without compensation.
PL that proposes a working day of 24 hours a week
The third (PL-00318/2021) considers part-time or part-time to that in which the worker works less than 24 hours a week and no longer 20 hours. In this way, the work week for this regime would increase from five to six days, with four-hour days per day. The project offers protection against arbitrary dismissal for workers hired under this modality.
According to Saco, “this division of four hours a day is due to the fact that it has been established that four hours a day is the minimum for the acquisition of labor benefits such as protection from arbitrary dismissal, CTS or vacation regime.”
It should be remembered that, in 2014, the youth labor regime law (Law No. 30288), better known as the pulpín law, was approved, which was intended to promote job creation for young people between 18 and 24 years old at the cost of cutting labor rights .
The norm, which had a 76% disapproval according to the GFK pollster (page 35), was widely rejected and generated massive marches against its implementation between December 2014 and January 2015. Due to the mobilizations, the norm was repealed on January 26 of that year.
PL to promote hiring of youth and seniors
The fourth project (PL-00320/2021) seeks to promote insertion into the formal labor market for young people under 29 years of age and adults over 55 who are unemployed or who belong to the informal sector.
How? Through the granting “of the double deduction of third category income tax in favor of the employer.” The tax reduction is included for payment of bonuses, vacations, CTS, arbitrary dismissal and social security.
On this point, Saco commented that the implementation of a rule like this “will require a statistical analysis of how many workers under 29 we have, how many over 55, what would be the impact.” “I am encouraged to think that it is possible that they have not measured the consequence in tax collection,” he said.
The PL indicates that the State would benefit because it currently assumes expenses for informal employment, such as the pension subsidy (Pension 65), provision of health services (Comprehensive Health Insurance), control of avoidance and evasion of taxes in Sunat and Sunafil, among others.
In addition, the initiative states that the State would also be favored by the payment of taxes of workers with salaries higher than 7 UIT. Due to this, it is considered that the implementation of this type of reduction would be positive.
PL on the loss of the employment relationship and flexibilization of contracts
The fifth project (PL-00321/2021) seeks to modify the articles 57, 58, 61, 63 and 72 of the Employment Promotion Law. According to the proposal presented, it is designed to make it easier for employers to contract subject to modality.
The new article 57 would establish that the employer may “validly terminate the worker by virtue of the expiration of the employment contract”, without prejudice to the duration of the productive activity.
Likewise, the modification of article 58 specifies that temporary labor contracts may be carried out due to market needs due to temporary increases. In addition, it may be renewable up to three years.
Meanwhile, the new article 61 refers to the type of accidental substitution contract, signed to replace a stable worker. The modification of 63 points to the modality for finished work or specific service, where the duration is determined by the conclusion of the project.
Finally, the new article 72 states that contracts between an employer and a worker can be entered into under the modalities described above.
According to Saco, this last project would be inappropriate because workers have, by constitutional mandate, protection against arbitrary dismissal. The specialist pointed out that the initiative could “lead to employers indiscriminately using temporary hiring” and could threaten the payment of compensation.
On the contrary, Germán Lora believed that these changes proposed to the Employment Promotion Law could make hiring and labor relations more attractive; and facilitate the mechanisms for the payment of wages. From his point of view, to “incentivize employers to hire formally, you have to simplify labor relations.”
For his part, Fernando Cuadros, an economist and former Deputy Minister of Employment, questioned via Twitter that the projects have not been prepared in accordance with specialized organizations in the sector, such as the National Labor Council (CNT) and the Ministry of Labor and Employment Promotion (MTPE) itself.
“A comprehensive labor reform that improves job quality is key, not worsen it. It must start from the MTPE, go through the National Labor Council, the Council of Ministers and, in the end, the Congress ”, he specified.
conclusion
The bills, according to specialist Germán Lora, would be a way to generate formal jobs as they propose more flexible labor relations between employees and employers. However, the also expert in labor law Raúl Saco warned that these measures could lead to abuses against workers.
Saco also highlighted the crisis generated by the pandemic, from which Peru is just emerging, and considered that it would not be the best time to introduce the changes that are specified in each bill.
For his part, the former Deputy Minister of Employment Fernando Cuadros has indicated that a comprehensive reform that improves the quality of employment would be “key,” but that this must be based on consensus with the sectors involved.
Explainer prepared by Lucía Tumes and Paola Mendieta for the PeruCheck alliance.
.
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.
