Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Ban Against Dismissal Renewed

New Order or Decree

Author: Daniela Arevalo, Associate – Littler

Presidential Decree N° 4.753, published in the Official Gazette N° 6.723 on December 20, 2022, renewed the ban against dismissal (Inamovilidad Laboral) from January 1, 2023, through December 31, 2024. This measure aims to protect employees from unjustified dismissals with exception of managerial employees, as well as seasonal or casual workers. Therefore, employers may dismiss protected employees only with just cause and previous approval from the Labor Inspectorate. The previous Decree was set to be valid for two years, 2020-2022, and expired on December 28, 2022.

Payment of Labor Benefits in Dollars

Precedential Decision by Judiciary or Regulatory Agency

Author: Daniel Jaime, Associate – Littler

On November 15, 2022, the Supreme Court of Justice confirmed a decision of the Court of Appeals, which stated that a quarterly cash-dollar bonus is part of the employee´s salary. However, the Court of Appeals condemned the payment of the dollar bonus in local currency. In Venezuela, the practice of paying bonuses or labor benefits in dollars is increasingly common since the devaluation of the local currency has forced employers to pay all or part of the compensation in dollars. This situation has led the Labor Courts to decide lawsuits claiming payments in dollars with more frequency.

The Supreme Court of Justice, however, has created the possibility for courts to order employers to pay in dollars, when this has been the currency agreed upon for the payment with the employee. Otherwise, if there is no such agreement and even if the company has made payments in dollars, the employer might satisfy its labor obligations by rendering the equivalent in local currency at the reference rate published by the Central Bank on the date of payment.

National Assembly Approves Special Law for Agricultural Workers

Proposed Bill or Initiative

Author: Gabriela Arevalo, Associate – Littler

On November 8, 2022, the National Assembly (AN, for its acronym in Spanish) approved the Special Bill for Agricultural Workers, which will vindicate agriculture and the social process of work as a fundamental element for the development of the nation. The law consists of five chapters and 18 titles and the purpose is to recognize agricultural workers who provide personal service in the agricultural production, excluding employers, owners and those assigned to lots of land where they work.

Likewise, its objective is to regulate the existing relationship between the workers who provide a personal service in the agricultural production and the employers. The next step will be carried out by the Mixed Commission, which consists of the permanent commissions of Economy, Finance, National Development and Comprehensive Social Development, to prepare the report for the second discussion and carry out the public consultation with all the sectors involved in the development of the law.

Chevron Will Resume Operations in Venezuela

Trend

Author: Daniela Arevalo, Associate – Littler

The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury authorized the company Chevron Corporation to resume operations in Venezuela. The Second Partial Agreement on December 2, 2023, was signed by the National Government and the opposition sector that integrates the Unitary Platform "U" in Mexico.

Following this announcement and in accordance with United States government policy, the OFAC issued Venezuela General License (GL) 41, which authorizes Chevron Corporation to resume limited operations for the extraction of natural resources in Venezuela. This license in relevant part indicates that U.S. persons are authorized to provide goods and services for certain activities, as specified in GL 41 and that non-U.S. persons generally do not run the risk of incurring U.S. sanctions. The U.S. government also welcomes the progress in the dialogue between the National Government and the opposition sector.

This agreement is expected to create new jobs in this sector.